BCOE-143 · December 2022 · English
IGNOU BCOE-143 December 2022 Previous Year Question Paper
Fundamentals Of Financial Management
Structured previous year question paper for BCOE-143, December 2022 session.
Max marks: 100 · Questions: 9
Verified: 29 Jul 2026
BACHELOR OF COMMERCE (GENERAL)
(BCOMG)
Term-End Examination
December, 2022
BCOE-143 : FUNDAMENTALS OF
FINANCIAL MANAGEMENT
Time : 3 hours Maximum Marks : 100
Note: Answer any five questions. All questions carry
equal marks.
Q1.(a) What is financial management ? How has financial management evolved as a discipline ? 10
(b) Discuss the role of finance manager.
Q2.(a) Explain the concept of risk and return. 10
(b) Discuss arbitrage pricing theory.
Q3.(a) What is meant by capital budgeting ? Why is it significant ? 12
(b) ‘A’ Ltd. is considering investment in a machine. The initial investment is = 4,00,000 and useful life is 5 years. There is no scrap value. Earning before depreciation and tax is = 2,00,000. The tax rate is 30%. Calculate payback period, and suggest to the company whether it should invest in this machine, if the predetermined payback period is 3 years.
Q4.(a) Explain the various types of costs. 10
(b) What do you mean by capital structure of a firm ? Explain the factors which influence capital structure of a firm.
Q5.(a) What is Dividend ? Discuss the conditions under which dividend cannot be declared, and the conditions under which it can be declared, from reserves. 10
(b) Explain the Graham and Dodd model on relationship between dividend policy and share valuation.
Q6.(a) Explain briefly the different forms of dividends. 10
(b) Explain different types of preference shares.
Q7.(a) What is combined leverage ? How is it calculated ? What is the significance of combined leverage ? 24244
(b) ‘Z Ltd. has the following capital structure :
(i) Equity share capital : 1,20,000 (shares of = 100 each)
(ii) 10% Preference share capital: 2,40,000 (shares of = 100 each)
(iii) 10% Debentures : 2,00,000 (= 100 each debenture) If EBIT is
(i) = 1,20,000, and
(ii) = 80,000, calculate the financial leverage under both situations and also calculate earning per share. The tax rate is 50%.
Q8.(a) Define working capital. What is the importance of adequate working capital ? 10
(b) Discuss the objectives and functions of cash management.
Q9.Write explanatory notes on any two of the following : 10+10
(a) Factoring
(b) Just-in-time inventory management
(c) CAPM
(d) Yield to Maturity method BCOE-143 4 BCOE-143 6 afg EBIT
(i) 1,20,000, 34%
(ii) 80,000 है,