Financial Management TU Board 2025 question paper

Define financial management.

List out any two capital market financial instruments.

What is current ratio?

You are planning to deposit Rs 10,000 in a bank account that offers 4 percent interest. Calculate the future value at the end of fourth year.

Define payback period.

List out any two features of common stock.

Write the meaning of capital structure.

What is net working capital?

State the meaning of dividend.

What do you mean by IPO?

Describe the meaning and types of financial markets.

What are the advantages and disadvantages of long term loan?

Explain the factors affecting the size of working capital.

What are the sources of long-term financing? Explain.

The management of Fewa Hotel Ltd. decided to buy a machine taking a loan of Rs 100,000 for 3 years from Sewa Bank. The loan bears an annual interest of 10 percent and calls for equal annual installment payments at the end of the 3 years. (a). Calculate the amount of annual payment. (b). Prepare loan amortization schedule.

Shyam and Company's 2024 income statement is shown below. SalesRs 36,000Cost of goods sold(25,200)Gross profitRs 10,800Fixed operating costs(6,480)Earning before interest and taxesRs 4,320Interest(2,880)Earnings before taxesRs 1,440Taxes (40%)(576)Net incomeRs 864 Compute the degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL) for the company. Also interpret the meaning of each of the numerical value.

Lalitpur Industries sells high-quality pens. Company has a yearly demand of 45,000 units. Carrying costs are Rs 3 per unit, and the cost of placing an order with its supplier is Rs 300. The purchase price is Rs 10 per unit. a. What is the economic order quantity? b. What is the total cost of EOQ?

Explain the goals of the financial management. Which one goal is superior? Why?

You are analyzing two proposed capital investments. Projects A and B. Each project has a cost of Rs 2,000,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: YearExpected Net Cash FlowProject AProject B1Rs 1,000,000Rs 1,500,00021,000,0001,000,00031,000,000500,000 a. What do you mean by capital budgeting decision? b. Calculate payback period. Which one project is better on the basis of payback period? c. Calculate net present value (NPV). Which one project or projects would you accept if these projects are independent? Mutually exclusive?

Consider the following balance sheet and financial statements for Hamro Hotel Limited. Balance Sheet for the Year Ended December 31, 2024 AssetsLiabilities and equityCashRs 240,000Accounts payableRs 380,000Accounts receivable320,000Notes payable420,000Inventory1,040,000Other current liabilities50,000Net plant and equipment800,000Long term debt800,000Common equity750,000Total assetsRs 2,400,000Total liabilities and equityRs 2,400,000 Income statement for the Year Ended December 31, 2024 SalesRs 3,000,000Less: Cost of goods sold1,800,000Gross profitRs 1,200,000Less: Selling, general, and administrative expenses860,000Earnings before interest and taxesRs 340,000Less: InterestRs 117,800Earnings before taxesRs 222,200Less: Tax (40%)88,880Earnings after taxesRs 133,320 a. Calculate current ratio and quick ratio. b. Calculate total assets turnover and inventory turnover ratio. c. Calculate the debt ratio and times interest earned ratio. d. Calculate net profit margin and return on equity.