B.B.A., Sem.-V CC-307 Advanced Financial Management 2017 PDF

Seat No. : _______________ NP-102 November-2017 B.B.A., Sem.-V CC-307 : Advanced Financial Management Time : 3 Hours]...

Seat No. : _______________ NP-102 November-2017 B.B.A., Sem.-V CC-307 : Advanced Financial Management Time : 3 Hours] [Max. Marks : 70 1. (A) The following is the capital structure of Saras Ltd. as on 31–3–2016 : 7 ` o Equity shares – 40,000 shares of ` 100 each 40,00,000 nf 10% Preference shares of ` 100 each 16,00,000 12% Debentures 24,00,000 r.i 80,00,000 The market price of the company’s share is ` 110 and it is expected that a dividend i ls of ` 10 per share would be declared after 1 year. The dividend growth rate is 6%. (i) If the company is in 50% tax bracket, compute weighted average cost of ea capital. (ii) Assuming that in order to finance an expansion plan, the company intends to borrow a fund of ` 40 lacs from a term loan bearing 14% rate of interest..R What will be the company’s revised weighted average cost of capital ? This financing decision is expected to increase dividend from 10 to 12 per share. However, the market price of equity share is expected to decline from ` 110 w to ` 105 per share. w OR ABC Ltd. has following book value capital structure : w Equity capital (` 10 per share) 10,00,000 11% Preference shares (` 100 each) 1,00,000 Retained earnings 12,00,000 13.5% Debentures (` 100 each) 5,00,000 28,00,000 NP-102 1 P.T.O. Instagram : @GRealsir www.Realsir.info  The next expected dividend per share is ` 1.50. The dividend per share is expected to grow at the rate of 7%. The market price per share is ` 20. Preference stock is currently selling for ` 75 per share. Debentures are selling for ` 80 per debenture. The tax rate for company is 50%. Calculate Weighted Average Cost of Capital using (i) Book value proportions, and (ii) Market value proportions. (B) A firm considering an expenditure of ` 60 lakhs for expanding its operations. 7 ` Number of existing equity shares 10 lakhs o Market value of existing share 60 nf Net earnings 90 lakhs Compute the cost of existing equity share capital and of new equity capital r.i assuming that new shares will be issued at a price of ` 52 per share and cost of new issue will be ` 2 per share. OR i ls (i) A company issued 10% preference shares of ` 100 each at par. The preference shares are to be repaid after 10 years. The floatation cost is 4%. ea The tax rate is 40%. Calculate the cost of preference shares. 4 (ii) A company has issued 12% debentures of ` 100 each. You are required to calculate the cost of debentures if they are issued at 3.R (a) 10% premium, and (b) 10% discount w The tax rate for company is 40%. w 2. (A) (i) The current price of a company’s share is ` 75 and dividend per share is ` 5. w Calculate the dividend growth rate, if investor’s required rate of return is 12%. 3 (ii) Face value of a 15% Debenture is ` 1,000. The maturity period of the debenture is 5 years. What is the face value of debenture if required rate of return is, (a) 15% and (b) 12% ? 4 OR NP-102 2 Instagram : @GRealsir www.Realsir.info  (i) An investor expects a dividend of ` 5 per share for each of 10 years and a selling price of ` 80 at the end of 10 years. Calculate present value of share if his required rate of return is 12%. 4 (ii) BS Ltd. has issued 11% preference shares with face value of ` 100. What will be the value of preference shares if the required rate of return is 13% ? 3 (B) Tisha Ltd. declared and paid annual dividend of ` 5 per share. It is expected to grow at 20% for next two years and 10% thereafter. The required rate of return is 15%. Compute the price of its shares. 7 OR Mr. B has invested in a company which is currently paying dividend of ` 4 per o share. The required rate of return is 16%. Compute the value of equity share 7 nf (i) If the growth rate in dividend is 6% and (ii) If the growth rate in dividend is declining by 6%. 3. i r.i (A) Write a note on Risk-Adjusted Discount Rate approach. 7 ls OR ea Explain meaning and characteristics of Derivatives. (B) Give difference between Forwards and Futures. 7.R OR Write a detailed note on Decision Tree Approach in Capital Budgeting. w w 4. (A) Explain factors affecting dividend policy of a company. 7 w OR Write a note on MM hypothesis. (B) Explain Walter’s model of dividend policy. 7 OR Discuss various types of dividend policy. NP-102 3 P.T.O. Instagram : @GRealsir www.Realsir.info 5. Do as directed : 14 (1) Give full form of CAPM. (2) Opportunity cost is also known as ________ cost. (Economic, Implicit, Marginal, Explicit) (3) Cost of retained earnings is the economic cost of dividends foregone by shareholders. (True/False) (4) Unsystematic risk is also known as ________ risk. (Diversifiable, Undiversifiable) (5) Give full form of YTM. (6) Valuation of preference shares are done on the exactly same lines as done for bonds. o (True/False) (7) ________ bonds do not have any redemption value. nf (8) American option can be exercised by holder at the end of period only. (True/False) r.i (9) Uncertainty is possibility of loss or injury from occurrence of an unwanted situation. (True/False) (10) Risk in derivative can be reduced by ________. (Revoking, Hedging, Waiving) i ls (11) Gorder’s model of dividend policy is based on relevance concept of dividend policy. (True/False) ea (12) Company’s dividend policy is not affected by future needs of capital. (True/ False) (13) In options contract, only ________ is obliged to perform the contract. (buyer, seller).R (14) Coupon rate is always equal to Internal rate of return. (True/False) _____________ w w w NP-102 4 Instagram : @GRealsir www.Realsir.info  Seat No. : _______________ NP-102 November-2017 B.BA., Sem.-V CC-307 : Advanced Marketing Management Time : 3 Hours] [Max. Marks : 70 1. (A) What is Brand identity ? Explain the inner and outer core of brand identity with a suitable example. 7 OR o Define Brand Positioning. Explain Brand Positioning with an Illustration. nf (B) Brand Awareness and Brand Image form the core elements of Brand Equity.” Justify. 7 r.i OR Define Brand. Explain the concept of Brand Architecture with various roles. i ls 2. (A) Define Marketing Research. Discuss the various steps in Marketing Research Process. 7 ea OR Explain the various survey methods used in primary data collection..R (B) Describe observation as a technique of primary data collection in Marketing Research. 7 w OR What is secondary data ? Discuss the advantages and disadvantages and sources of w secondary data with reference to Marketing Research. w 3. (A) What is a questionnaire ? Explain the questionnaire design process. 7 OR Explain the different non-probability sampling techniques. (B) Describe marketing research report preparation and presentation process in brief. 7 OR Explain the itemized rating scales used in research. NP-102 5 P.T.O. Instagram : @GRealsir www.Realsir.info 4. (A) Define services. Explain the concept of service flower with a suitable example. 7 OR Explain the gap model of service quality with an illustration. (B) ‘The service sector has grown tremendously in the recent past.’ Comment. 7 OR Discuss the different strategies for demand management in services. 5. Answer the following : 14 (1) Name the three additional Ps in services marketing as compared to marketing of goods. o (2) Name the four primary scales of measurement used in marketing research. nf (3) Name the three basic marketing research designs. (4) Name any four elements of the brand identity prism. _____________ i r.i ls ea.R w w w NP-102 6 Instagram : @GRealsir www.Realsir.info  NP-102 November-2017 B.B.A., Sem.-V CC-307 : Advanced Human Resource Management Time : 3 Hours] [Max. Marks : 70 1. (A) What is SHRM ? Discuss the components of SHRM in brief. 7 o OR nf What is strategy ? Discuss competitive strategies with an illustration. (B) Differentiate : HRM V/s Strategic HRM. 7 r.i OR How the investment perspective of human resources is advantageous to an i organization ? ls ea 2. Discuss the various environmental trends affecting HRM in detail. 14 OR.R (A) Why HRM is a constant changing function ? Discuss the new roles associated with the changing nature of HR function. 7 (B) Explain the benefits of SHRM and bring out barriers of it. 7 w w 3. (A) Discuss the potential problems occurred during appraisal of employees. How can supervisor avoid such errors to make the appraisal effective ? 7 w OR Differentiate the Performance Appraisal from Performance Management. (B) Discuss any three methods of appraising performances of employees in detail. 7 OR Why performance management system is needed in an organization ? NP-102 7 P.T.O. Instagram : @GRealsir www.Realsir.info 4. (A) What is pay determination of workers ? Discuss any two basic factors an HR manager needs to consider while determining pay rates. 7 OR Discuss the concept of Competency based pay and narrate its pros and cons. (B) Why employees prefer programme of flexible benefits ? As an HR executive of KPO unit, design flexitime programme for your employees. 7 OR What is Broad-banding ? What are its advantages and disadvantages ? 5. Do the following : 14 (1) Job sharing approach allows flexible spending accounts and benefits to workers. o (True/False) (2) When a firm operates in niche market, it is called differentiation strategy. nf (True/False) (3) Capital availability ensures facilitation of coordination between HR strategies and (4) business strategies. r.i (True/False) In Halo error, supervisor used to focus a lot on candidate’s initial personality trait. i (True/False) ls (5) SHRM believes in more ________ control. (organic, bureaucratic) (6) If a firm distinguish its products from its competitors, it’s known as ________ ea business strategy. (Focus, Differentiation) (7) In PMS ownership of apprising the performance is of ________..R (Line managers, human resource department) (8) ________ allows two or more people to share a single full time job. (Job sharing, Work sharing) w (9) As per talent model of HRM, salaries are linked with ________ in order to get better results. (performance, seniority, attendance, initiative) w (10) If people who born after 1980 termed as Gen Y, then people who born after 2000 termed as ________. w (11) Performance Management is a part of performance appraisal process. (True/False) (12) Define : Leniency error (13) Give full form of ESOS and ESPS (14) Define : Cafeteria approach _____________ NP-102 8 Instagram : @GRealsir www.Realsir.info