Sub. code 4181
NEB — GRADE XII
2081
Old Question
Finance Question Paper 2081 (Old Question)
The candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Pass Marks : 32
सबै प्रश्नको उत्तर दिनुहोस् । (Attempt All Questions)
This old question question paper is for Class 12 Finance, 2081 (subject code 4181), carrying full marks of 75 with a pass mark of 32, to be completed within 3 Hours. Answers with step-by-step solutions are available for every question below.
Group 'A'
Very short answer questions
State any two roles of financial manager.
State any two components of an annual report.
Why is current ratio determined?
Mention any two features of preferred stock.
State any two factors affecting the capital structure.
How is the value of common share determined using zero-growth model?
Write about gross concept of working capital.
What is stock dividend?
Why is foreign currency important in multinational corporation?
If total debt of the company is Rs. 700,000, 30% of the debt capital collected through long term debt, find out the amount of short term debt?
A trader bought goods of Rs 300,000 from a foreign country. If the amount is to be paid in dollar and the current exchange rate is Rs. 135 per dollar, how many dollars should be paid?
Group 'B'
Short Answer Questions
How business finance is interrelated with accounting? Explain.
How statement of financial position is prepared? Explain with example.
How much annual percentage cost and effective annual rate when the credit terms are 3/12, net 25?
How much breakeven point in rupees and fixed cost if unit selling price is Rs. 40 and unit variable cost is Rs. 25 of a manufacturing company with 10,000 units of break even point?
Describe the steps involved in the evaluation of an investment.
A company has annual sales of Rs. 12,00,000 with an inventory turnover ratio of 10 times. It has receivable collection period of 28 days and a payable deferral period of 21 days. Assume 350 working days in a year.
Explain the dividend payment schemes.
Describe the role of domestic financial management in development of country.
Exchange rate between Canadian Dollar (CAD) is 1.4661 per Euro, whereas Canadian Dollar (CAD) is 0.0117 per Japanese Yen (JPY). How much cross rate between Euro and Japanese Yen (JPY)?
Group 'C'
Long Answer Questions
Following Balance Sheet of a company is given as:
Particulars | Assets (Rs.) | Liabilities (Rs.) |
|---|---|---|
Share Capital | — | 5,00,000 |
Bank Loan | — | 2,00,000 |
Creditors | — | 1,00,000 |
Retained Earnings | — | 2,50,000 |
Fixed Assets | 6,00,000 | — |
Current Assets | 4,50,000 | — |
Total | 10,50,000 | 10,50,000 |
Other Information:
i) Current assets include Rs. 80,000 for inventory and Rs. 20,000 for cash.
ii) Net Profit = Rs. 1,20,000
iii) Sales = Rs. 18,00,000
Required:
a) Liquid Ratio
b) Debt-Equity Ratio
c) Inventory Turnover Ratio
d) Fixed Assets Turnover Ratio
e) Return on Total Assets
f) Return on Equity
g) Net Profit Ratio
h) Find the amount of Gross Profit if gross profit margin is 40%.
Write the meaning of Preference share. Explain the features of Preference share.
Following information related to bonds are given:
Maturity period = 10 years
Par value = Rs. 1,000
Interest rate = 0% (Zero coupon bond)
Rate of return = 12%
Required: Value of Bond
A company has just paid a cash dividend of Rs. 25 per share, shareholders required 15% return from their investment. If expected rate of growth is 5% per year.
Required: Value of stock at present
Following information are given as:
Year | Cash Flow | Project M | Project N |
|---|---|---|---|
0 | NCO | (Rs. 5,00,000) | (Rs. 5,00,000) |
1 | CFAT | Rs. 80,000 | Rs. 1,40,000 |
2 | CFAT | Rs. 1,20,000 | Rs. 1,40,000 |
3 | CFAT | Rs. 1,40,000 | Rs. 1,40,000 |
4 | CFAT | Rs. 1,60,000 | Rs. 1,40,000 |
5 | CFAT | Rs. 2,00,000 | Rs. 1,40,000 |
Other Information:
Minimum required rate of return = 12%
Required:
i) Net Present Value of both projects
ii) Which project is more profitable? Why?