November 2017 Paper 2 and 3 Questions on Financial Management (in Hindi)

Lesson 3 of 23 • 164 upvotes • 11:04mins

Heena

This video covers following Previous Year Questions on Financial Management - November 2017 Paper 2 Questions of Financial Management- Capital budgeting 31. Which of the following statements is false? *(1) The opportunity cost of an input is considered in capital budgeting (2) Capital budgeting decisions are reversible in nature (3) Cash flows and accounting profits are different (4) An expansion decision is a capital budgeting decision Models/ Approach is related to which Decisions 32. Match the items of List - I with those of List Il and indicate the correct code List I (a) ABC Analysis (b) Walter Model (c) Capital Rationing (d) Net Operating Income (iv) Working Capital Management List II (i) Dividend Decision (ii) Capital Budgeting Decision (ii) Capital Structure Decision Financial Leverage 33. Main objective of employing Financial Leverage is to *(1) Reduce the risk associated with profits *(2) Maintain the stability in profits (3) Decrease the cost of debt capital (4) Magnify the return on equity share capital Cost of equity capital 34. Which one of the following is not a method of calculating cost of equity capital? (1) Dividend yield method (2) Dividend yield plus growth method (3) Yield to maturity method (4) Earnings yield method Capital Budgeting Techniques 35. Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project? (1) Net Present Value (2) Internal Rate of Return (3) Pay back Period (4) Accounting Rate of Return November 2017 Paper 3 Questions of Financial Management- FM $26. Match the items of List- I with those of List-II and indicate the correct code: List List - II 9(a) Net Income Approach (iii) Capital Structure Planning *(b) Profitability Index(iv) Capital Budgeting Decision *(c) Concentration Banking (i) Working Capital Management (d) Lower Rate of Return (ii) Over- capitalisation Capital Budgeting Decision e27. Statement -I: In payback period method, the risk of the project is adjusted by lessening the target payback period. Statement - Il Sensitivity Analysis helps in calculation of net present value of the proposal Code (1) Statement is correct, but statement Il is wrong (2) Statement - I is wrong, but statement - Il is correct *(3) Statement - I and statement - II, both are correct (4) Statement -I and statement I, both are wrong MM Model 28. Dividend irrelevance argument of MM Model is based on: (1) Hedging *(2) Issue of Debentures (3) Liquidity (4) Arbitrage