Tribhuvan University

BBSBachelor

Financial Management

Subject Code: MGT 215Year: 2082

Full Marks: 100Time: 3 Hours

BBS Papers

Group A

Brief Answer Questions

Attempt all questions.

1

What is meant by wealth maximization goal of a firm?

[2 marks]

2

What are the major limitations of ratio analysis?

[2 marks]

3

How do you calculate value of a zero coupon bond?

[2 marks]

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 marks]

5

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

[2 marks]

6

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

[2 marks]

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 marks]

8

Write the meaning of capital structure.

[2 marks]

9

How do you determine EOQ using equation? Illustrate.

[2 marks]

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.

[2 marks]

Completed Group A