502 assignment spring 2016

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ASSIGNMENT
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DRIVE
PROGRAM
SEMESTER
SUBJECT CODE &
NAME
BK ID
CREDITS
MARKS
SPRING 2016
BBA
5
BBA502 &
FINANCIAL MANAGEMENT
B1850
4
60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400
words. Each question is followed by evaluation scheme.
Q. No
Questions
Marks
Total
Marks
1
Explain the role of a finance manager, understanding capital markets and equity and
borrowed funds.
2
Explanation of role of finance manager
3
Explanation of understanding capital markets
3
Explanation of equity and borrowed funds
4
10
Write short notes on :
a) Budgeting and forecasting
b) Financial Budgets
c) Cost Centre
3
4
Explanation of budgeting and forecasting
4
Explanation of financial budgets
4
Explanation of cost centre
2
10
Explain on cost of debt and cost of equity capital.
Explanation of cost of debt
5
Explanation of cost of equity capital
5
10
Solve the given problem below:
Sales 25,00,000 ; Variable cost 15,00,000 ; Fixed cost 5,00,000 (including interest on
10,00,000). Calculate degree of financial leverage.
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Determine the operating leverage :
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Determine the degree of operating leverage from the following data:
S Ltd
R Ltd
Sales
25,00,000
30,00,000
Fixed costs
7,50,000
15,00,000
Variable expenses 50% of sales for firm S 25% for firm R.
5
6
Calculation of financial leverage
5
Calculation of operating leverage
5
10
Explain the capital budgeting process. Why is Net Present Value (NPV) important?
Explanation of capital budgeting process
5
Importance of NPV
5
10
Write about cash planning and explain about cash forecasting and budgeting.
Explanation of cash planning
5
Explanation on cash forecasting and budgeting
5
10