Sub. code 4181
NEB — GRADE XII
2082
Old Question
Finance Question Paper 2082 (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, 2082 (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 responsibilities of financial manager.
Which financial statement shows financial position of a business?
Write the meaning of fixed assets turnover ratio.
State any two advantages of short term debt for a company.
Write any two features of optimal capital structure.
Mention any two differences between preferred stock and common stock.
List any two characteristics of bond.
What is investment decision?
Define forward rate.
If short term source is Rs. 3,00,000 which is 40% of the total debt capital, find out the total debt of a company.
If current exchange rate is Rs. 130 per dollar, how much dollar is needed for Rs. 68,900?
Group B
Short Answer Questions
How business finance is interrelated with economics? Explain.
How income statement is prepared? Describe with suitable example.
How much annual percentage cost and effective annual rate when credit terms are 4/15, net 35?
How much amount of breakeven point in rupees and operating fixed cost, if unit selling price Rs. 60 and unit variable cost Rs. 40 with break-even point is 8,000 units.
Explain any five types of investment proposals.
A company has annual sales of Rs. 8,00,000 with an inventory turnover ratio of 8 times. It has receivable collection period of 24 days and a payable deferral period of 18 days. (Assume 340 working days in a year.)
Required:
a) Inventory Conversion Period
b) Cash Conversion Cycle
Explain any five factors affecting dividend decision.
Describe the role of multinational corporation in development of a country.
Exchange rate of one Singapore Dollar (SGD) is 1.8484 Australian Dollar (AUD), whereas one Singapore Dollar is 1.3748 American Dollar (USD). Find out the cross rate between Australian Dollar (AUD) and American Dollar (USD).
Group C
Long Answer Questions
Following information of Balance Sheet given as:
Items | Assets | Liabilities |
|---|---|---|
Cash | 1,00,000 | |
Debtors | 2,00,000 | |
Machinery | 4,00,000 | |
Stock | 50,000 | |
Capital | 3,00,000 | |
Debenture | 1,00,000 | |
Creditors | 80,000 | |
Overdraft | 1,20,000 | |
Retained Earnings | 1,50,000 | |
Total | 7,50,000 | 7,50,000 |
Additional Information:
i) Net profit for the year: Rs. 1,00,000
ii) Sales: Rs. 15,00,000
Required:
a) Current Ratio
b) Liquid Ratio
c) Inventory Turnover Ratio
d) Debt-Equity Ratio
e) Total Assets Turnover Ratio
f) Return on Capital Employed
g) Return on Equity
h) Net Profit Ratio
Write the meaning of ordinary share. Explain any five features of ordinary share.
A company has issued Rs. 1,000 par, 12% coupon perpetual bonds. If required rate of return to the bond holders is 15%, what should be the value of bond?
A company has paid a cash dividend of Rs. 20 per share in last year. Shareholders required 14% return on investment. If expected rate of growth is 8% per year,
Required:
Value of stock at present.
Following informations are given as:
Year | Cash Flow | Project A (Rs.) | Project B (Rs.) |
|---|---|---|---|
0 | NCO | (4,00,000) | (4,00,000) |
1 | CFAT | 1,50,000 | 1,64,000 |
2 | CFAT | 1,80,000 | 1,64,000 |
3 | CFAT | 1,90,000 | 1,64,000 |
4 | CFAT | 2,00,000 | 1,64,000 |
5 | CFAT | 1,00,000 | 1,64,000 |
Other Information:
i) Required rate of return: 12%
Required:
i) Find the net present value of both projects. [4+2]
ii) Which project is more profitable? Why? [1+1]