Sub. code 4181
NEB — GRADE XII
2083
Old Question
Finance Question Paper 2083 (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, 2083 (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.
Which financial statement shows the net profit?
Mention any two limitations of financial ratio analysis.
Define short-term source of debt.
Write the meaning of financial risk.
How is common stock valued?
State any two determinants of working capital.
What is dividend?
Define domestic financial management.
If long-term debt is Rs. 8,00,000, which is 80% of total debt, find out the amount of short-term debt.
A company purchases goods from a foreign country paying Rs. 5,80,000. How much dollar is needed if the exchange rate is Rs. 145 per dollar?
Group 'B'
Short Answer Questions
Explain the ethical issues in financial decision.
How is the statement of financial position prepared? Explain with format.
Calculate the annual percentage cost and the effective annual rate, if the credit terms are 3/10 net 50. (Assume 365 days in a year.)
The BEP of a manufacturing company is Rs. 4,80,000. Fixed cost is Rs. 1,20,000. Variable cost per unit is Rs. 3.
Required:
a) Contribution margin ratio
b) Selling price per unit
Explain the features of investment decision.
A company has a receivable collection period of 39 days and payable deferral period of 30 days. Inventory turnover ratio is 5 times. (Assume 365 working days in a year.)
Required:
a) Inventory Conversion Period (ICP)
b) Cash Conversion Cycle (CCC)
Explain about the dividend payout schemes.
A laptop costs 2,000 American dollar (USD) in America. The same laptop costs Rs. 1,75,000 in Nepal. If purchasing power parity holds, what is the spot exchange rate between America and Nepal?
Explain any five characteristics of multinational corporation.
Group C
Long Answer Questions
Following Balance Sheet is given as:
Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
Share capital | 4,00,000 | Building | 3,00,000 |
Loan | 1,00,000 | Machinery | 2,00,000 |
Creditors | 50,000 | Stock | 1,00,000 |
Outstanding expense | 30,000 | Debtors | 2,00,000 |
Overdraft | 20,000 | Cash | 40,000 |
Retained Earnings | 3,00,000 | Bank | 60,000 |
Total | 9,00,000 | Total | 9,00,000 |
Additional Information:
i) Sales for the year: Rs. 6,00,000
ii) Net profit: Rs. 2,40,000
iii) Working days in the year: 360 days
Required:
a) Current Ratio
b) Quick Ratio
c) Debt-Equity Ratio
d) Net Profit Ratio
e) Return on Total Assets
f) Return on Total Capital
g) Debtors Turnover Ratio
h) Days Sales Outstanding (DSO)
Define perpetual Bond. Explain the process of valuation of zero coupon Bond and coupon Bond with a finite maturity.
A company paid Dividend of Rs. 10 on its common stock last year. Expected rate of growth is 20%, investors required rate of return is 12%.
Required:
Value of common stock
Following information related to bond is given as:
Maturity period: 10 years
Face value: Rs. 1,000
Interest rate: 10%
Rate of return: 15%
Required:
Value of Bond
Following are the two alternative proposals are given:
Year | Cash Flow | Project A (Rs.) | Project B (Rs.) |
|---|---|---|---|
0 | Initial Investment (NCO) | (3,00,000) | (5,00,000) |
1 | Cash Flow After Tax (CFAT) | 0 | 1,50,000 |
2 | Cash Flow After Tax (CFAT) | 0 | 1,50,000 |
3 | Cash Flow After Tax (CFAT) | 2,00,000 | 1,50,000 |
4 | Cash Flow After Tax (CFAT) | 80,000 | 1,50,000 |
5 | Cash Flow After Tax (CFAT) | 2,20,000 | 1,50,000 |
Minimum rate of return: 10%
Required:
a) Net present value of Project A
b) Net present value of Project B