MGT215 Fundamentals of Financial Management
Fundamentals of Financial Management: most repeated questions
Questions that have come up in more than one paper, matched by what they ask rather than exact wording. Most repeated first.
- 4×Asked in 2081, 2080, 2078Explain the concept and functions of financial management.Answer coming10
See the wording in each paper
- 3×Asked in 2081, 2080, 2078A firm has DOL of 1.2 times and DFL of 2.5 times. What is its degree of total leverage? If sales increases by 10 percent, by what percent net income will increase?Answer coming2
See the wording in each paper
- A firm has DOL of 1.2 times and DFL of 2.5 times. What is its degree of total leverage? If sales increases by 10 percent, by what percent net income will increase?TU Board 2081
- A firm has DOL of 2 times and DFL of 3 times. Its net income is Rs 200,000. What is its degree of total leverage? If sales increases by 10 percent, what will be its new net income?TU Board 2080
- A firm has DOL of 1.5 times and DFL of 2 times. Its net income is Rs 40,000. What is its degree of total leverage? If sales increases by 10 percent, what will be its new net income?TU Board 2078
- 3×Asked in 2081, 2080, 2078Bagmati Noodles Company's inventory conversion period is 25 days, and an average collection period is 50 days. Account payable is paid approximately 35 days after they arise. Calculate the firm's operating cycle and cash conversion cycle.Answer coming2
See the wording in each paper
- Bagmati Noodles Company's inventory conversion period is 25 days, and an average collection period is 50 days. Account payable is paid approximately 35 days after they arise. Calculate the firm's…TU Board 2081
- Delta Company's inventory conversion period is 40 days, and an average collection period is 50 days. Account payable is paid approximately 30 days after they arise. Calculate the firm's cash…TU Board 2080
- Delicious Biscuit Company's inventory conversion period is 30 days, and an average collection period is 40 days. Account payable is paid approximately 20 days after they arise. Calculate the firm's…TU Board 2078
- 3×Asked in 2081, 2080, 2078Consider the probability distribution of alternative rates of return associated with Stock A and Stock B given in the following table. State of economyProbabilityStock AStock B10.30%35%20.4101530.320 5 a. Calculate the expected return and standard deviation…Answer coming15
See the wording in each paper
- Consider the probability distribution of alternative rates of return associated with Stock A and Stock B given in the following table. State of economyProbabilityStock AStock…TU Board 2081
- Consider the probability distribution of alternative rates of return associated with Stock A and Stock B given in the following table. State of economyProbabilityStock AStock…TU Board 2080
- Consider the probability distributions of alternative rates of return associated with Stock A and Stock B given in the following table State of economyProbabilityStock AStock…TU Board 2078
- 3×Asked in 2081, 2080, 2078Lumbini Hotel has the following capital structure, which it considers to be optimal: Debt40%Preferred stock10Common equity50100% Lumbini's current dividend per share is Rs 30. Investors expect future earnings and dividends to grow at a constant rate of 5…Answer coming10
See the wording in each paper
- Lumbini Hotel has the following capital structure, which it considers to be optimal: Debt40%Preferred stock10Common equity50100% Lumbini's current dividend per share is Rs 30. Investors expect…TU Board 2081
- Sahara Company has the following capital structure, which it considers to be optimal: Debt40%Preferred stock10Common equity50100% Sahara's current dividend per share is Rs 30. Investors expect…TU Board 2080
- Mega Company has the following capital structure, which it considers to be optimal: Debt30%Preferred stock20Common equity50100% Mega's current dividend per share is Rs 15. Investors expect future…TU Board 2078
- 2×Asked in 2080, 2078Mega Company expects next year's net income to be Rs 8 million. The firm's current debt ratio is 60 percent. The company has Rs 10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual…Answer coming2
See the wording in each paper
- Mega Company expects next year's net income to be Rs 8 million. The firm's current debt ratio is 60 percent. The company has Rs 10 million of profitable investment opportunities, and it wishes to…TU Board 2080
- (a) Describe the major factors affecting dividend policy of a firm (b) Karnali Herbal Company (KHC) expects next year's net income to be Rs 12 million. The firm's current debt ratio is 60 percent.…TU Board 2078
- 2×Asked in 2081, 2078City bank has just issued 10 percent coupon bonds on the market with 15 years to maturity. Bonds have par value Rs. 1000. The bonds make annual payment and currently sell for Rs. 900. What is the current yield?Answer coming2
See the wording in each paper
- City bank has just issued 10 percent coupon bonds on the market with 15 years to maturity. Bonds have par value Rs. 1000. The bonds make annual payment and currently sell for Rs. 900. What is the…TU Board 2081
- Lumbini Hotel has just issued 8 percent coupon bonds on the market with 7 years to maturity. Bonds have par value Rs 1000. The bonds make annual payment and currently sell for Rs 850. What is the…TU Board 2078
- 2×Asked in 2080, 2078What do you mean by wealth maximization goal of the firm?Answer coming2
See the wording in each paper
- 2×Asked in 2080, 2078Sagarmatha Company uses 500,000 units of a product per year on a continuous basis. The product has carrying costs of Rs 10 per unit per year and fixed costs of Rs 1000 per order. What is its EOQ?Answer coming2
See the wording in each paper
- Sagarmatha Company uses 500,000 units of a product per year on a continuous basis. The product has carrying costs of Rs 10 per unit per year and fixed costs of Rs 1000 per order. What is its EOQ?TU Board 2080
- Gurash Pvt. Ltd. uses 10,000 units of a product per year on a continuous basis. The product has carrying costs of Rs 20 per unit per year and fixed costs of Rs 1000 per order. What is its EOQ?TU Board 2078
- 2×Asked in 2080, 2078How does perpetuity differ from annuity?Answer coming2
See the wording in each paper
- How does perpetuity differ from annuity?TU Board 2080
- How does ordinary annuity differ from annuity due?TU Board 2078
- 2×Asked in 2081, 2078The management of Mountain Resort Pvt. Ltd. decided to buy a printer taking a loan of Rs. 100,000 for 3 years from City bank. The loan bears and annual interest of 10 percent and calls for equal annual installment payments at the end of each of the 3 years.…Answer coming10
See the wording in each paper
- The management of Mountain Resort Pvt. Ltd. decided to buy a printer taking a loan of Rs. 100,000 for 3 years from City bank. The loan bears and annual interest of 10 percent and calls for equal…TU Board 2081
- The management of Pashupati Publication Pvt. Ltd. decided to buy a printer taking a loan of Rs 300,000 for 3 years from Bank of Asia. The loan bears an annual interest of 10 percent and calls for…TU Board 2078