MGT215 Fundamentals of Financial Management

Fundamentals of Financial Management TU Board 2082 question paper

19 questions · 19 with worked answersSit this paper (timed)

Tribhuvan University

Bachelor of Business Studies

Year 2 · TU Board 2082

Course Title: Fundamentals of Financial Management (MGT215)

Full Marks: 100Pass Marks: 35Time: 3 hrs

Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.

Group A

Brief Answer Questions(10 × 2 = 20)

  1. 1.

    What is meant by wealth maximization goal of a firm?

    2
  2. 2.

    What are the major limitations of ratio analysis?

    2
  3. 3.

    How do you calculate value of a zero coupon bond?

    2
  4. 4.

    A stock has required rate of return 12 percent, a beta of 1.5 and the expected return on the market is 10 percent. What must the risk-free rate be?

    2
  5. 5.

    What is the present value of Rs 100,000 due in year 6, discounted at 12 percent?

    2
  6. 6.

    How do you compute profitability index and take investment decision based on profitability index?

    2
  7. 7.

    A company's fixed operating costs are Rs. 800,000, its variable costs are Rs. 30 per unit, and the product's sales price is Rs. 70. What is the company's operating break-even point?

    2
  8. 8.

    Write the meaning of capital structure.

    2
  9. 9.

    How do you determine EOQ using equation? Illustrate.

    2
  10. 10.

    Current market price per share of Sahara Company is Rs. 300. If company declares 20 percent stock dividend, calculate adjusted market price per share after stock dividend.

    GROUP: B | Descriptive Answer Questions | 5 × 10 = 50

    2

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