IGNOU BCOE-143 June 2022 Previous Year Question Paper

Q1.(a) What is financial management ? Discuss the objectives of financial management. 12

(b) XYZ Ltd. has issued shares of = 100 each, = 90 paid up. The rate of dividend is declared by the company as 10%. The normal rate of return is 9%. Find out value of the share.

Q2.What is lease financing ? What are the advantages and disadvantages of lease financing ? Explain different types of lease.

Q3.(a) What do you mean by capital structure of a firm ? Discuss Net Income approach of capital structure. 10

(b) Explain different types of debentures.

Q4.The cost of Machine ‘A’ is = 60,000 and Machine ‘B’ is = 65,000. The life of both the machines is 5 years. The cost of capital is 10%. The inflows of both the machines are given below : Year | Machine ‘A’ (=) | Machine ‘B’ (=)

Q5.000 22,000

Q6.000 20,000

Q7.000 18,000

Q8.000 16,000

Q9.000 20,000 The PV factor of = 1 at 10% cost of capital for 5 years is 0-909, 0-826, 0-751, 0-683 and 0-621 respectively. Calculate Net Present Value and Profitability Index of both the machines.

Q10.(a) Explain Residual theory of dividend. 10

(b) What is buyback of shares ? Explain the methods and effects of buyback of shares.

Q11.What is working capital ? What are the different types of working capital ? Discuss the different factors affecting working capital.

Q12.(a) Explain the various motives for holding cash. 10

(b) Describe the different techniques for control of receivables.

Q13.(a) Explain the factors influencing inventory management. 8

(b) What is forfaiting ? What are the functions and features of forfaiting ?

Q14.Write explanatory notes on any two of the following : 10+10

(a) Credit Policy

(b) Certainty Equivalent Method

(c) Venture Capital

(d) Arbitrage Pricing Theory