Q1 (A) Why is a preference talk about called a crossbreed security? Do you agree that it combines
the worst highlights of ordinary discuss & bonds?
(B) Explain the steps involved in preparing economic plan. Precisely what are the value of financial preparing?
Q2. (A) What are the incremental money flows? In short , explain associated with the comply with on calculations of incremental cash moves: A вЂ“ sun costs. B- Allocated over minds. C- Option cost.
(B) " There are 2 dangerous situations that management will need to usually avoid in В В В Controlling inventoriesвЂќ. Make clear?
Q3. (A) " The profit maximization is usually not an operationally feasible criterion ". Do you really Agree? Illustrate your landscapes?
(B) " The certainty equal approach is the erratically superior to the risk-adjusted discount charge. вЂќ Do you really agree? Provide reasons.
Q4 (A) What shall be the consequences of the stick to charges telling the truth in the organizations receivables:
a) Interest rate.
b) Production and selling costs increases.
c) The firm alterations it's credit terms by " 2/10, net 30вЂќ to 3/10, net 30вЂќ. (B) Identify the place ration of a firm that has a net profit following taxes of RS you, 50, 500 & 35, 000 Stocks out standing up, selling in a market selling price of RS 10/- shares. What rate of returning do share holders expect?
Q5. (A) What is the Concept of working Capital routine? Why is it important in working capital management? Give an example to illustrate the operating pattern concept? (B) What is the value of marketability & floatation costs inside the capital composition decision in the firm?
Q6. (A) XY Ltd. can be planning to sell off a 90-day of Rs. 100 pertaining to Rs. 94. 75. The organization will have to baladi expenses as follows: (a) rating of issue: 0. 35% (b) Stamp duty zero. 5% Giving charges zero. 2% & (d) sellers fee zero. 15%. What is the cost of c. p? (B) A company has 50, 00, 000 regular shares exceptional. The market selling price of...