CLICK HERE FOR VARIOUS NEW JOBS 
CLICK HERE FOR VARIOUS EDUCATIONAL NEWS 
CLICK HERE FOR NEW SCHOLARSHIPS 
CLICK HERE FOR ADMISSION NOTICES 
Click And Follow On Google+ To Get Updates
Please Wait 10 Seconds... OR You CanSkip

ADMISSION NOTICES
Scholarships

Scholarship-300x291

BUDGET 2014-15
budget_2014-2015
New Date Sheets
VU SOLVED ASSIGNMENTS
Recent Posts

Posts Tagged ‘VU .ACC501 -. BUSINESS. FINANCE .(Session – 1 ). MIDTERM. EXAMINATION .SPRING.2007’

VU ACC501 – BUSINESS FINANCE (Session – 1 ) MIDTERM EXAMINATION SPRING 2007

.

MIDTERM EXAMINATION

SPRING 2007 Marks: 40

ACC501 – BUSINESS FINANCE (Session – 1 ) Time: 90min

StudentID/LoginID: ______________________________

Student Name: ______________________________

Center Name/Code: ______________________________

Exam Date: Saturday, May 12, 2007

Please read the following instructions carefully before attempting any question:

All questions are compulsory.

This exam consists of 10M ultiple Choice Questions (MCQs) of 1 mark each, 5 True/False of 1

mark each,3 Short questions of 5 marks each and 1comprehensive Numerical of 10marks.

For each Multiple Choice Question, read the options available and select which you consider is the

correct one.

You are required to show all the working of short as well as practical question.

Use of calculator is allowed.

This examination is closed book, closed notes and closed neighbours.

Do not ask question about the contents of this examination from anyone.

You may wish to pace yourself with your own watch, but the Supervisor will be the official

timekeeper of the test.

Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please

comply with supervisor’s directions to avoid any unpleasant event

For Teacher’s use only

Question 1 2 3 4 5 6 7 8 9 10 Total

Marks

Question 11 12 13 14 15 16 17 18 19

Marks

Question

Marks

.

Question No: 1 ( Marks: 1 ) – Please choose one

The Ratios showing the ability of a firm to pay its bills in short-run are called:

Leverage Ratios

Liquidity Ratios

Profitability Ratios

Market Value Ratios

Question No: 2 ( Marks: 1 ) – Please choose one

Evaluating the size, timing and risk of future cash flows is the essence of :

Capital Budgeting

Capital Structure

Inventory Control

None of the given options

Question No: 3 ( Marks: 1 ) – Please choose one

Sumi Corporation is dealing in furniture industry. It has an equity multiplier of 1.78

times. The debt to equity ratio would be:

0.38 times

0.58 times

0.78 times

0.98 times

Question No: 4 ( Marks: 1 ) – Please choose one

________________ involves the sale of used securities from one investor to another.

Primary Market

Secondary Market

Tertiary Market

None of the given options

.

Question No: 5 ( Marks: 1 ) – Please choose one

SNT Corporation paid Rs. 28,900 as tax in 2006. If the tax rate was 34%, what was the

taxable income of the corporation during 2006?

Rs. 90,000

Rs. 85,000

Rs. 65,000

Rs. 77,000

Question No: 6 ( Marks: 1 ) – Please choose one

______________ pays no coupon at all and is offered at a price that is much lower than its

stated value.

Government Bond

Floating Rate Bond

Zero Growth Bond

None of the given options

Question No: 7 ( Marks: 1 ) – Please choose one

Which of the following statement provides a financial summary of the firm’s operating

results during a specified period.

Balance Sheet

Income Statement

Cash Flow Statement

Retained Earning Statement

Question No: 8 ( Marks: 1 ) – Please choose one

Depreciation expense does not reflect a cash outflow but still shown as an expense on the

income statement to serve as a:

Cash inflow

.

Cash outflow

Tax Shield

Interest Shield

Question No: 9 ( Marks: 1 ) – Please choose one

Investors demand extra yield on a taxable bond as a compensation for the unfavorable tax

treatment, known as:

Taxability premium

Inflation premium

Interest Rate Risk Premium

None of the given options

Question No: 10 ( Marks: 1 ) – Please choose one

If you invest Rs. 150 in a bank on an interest rate of 14%. How much will you have in

your account after 5 years ?

Rs. 78

Rs.163

Rs. 207

Rs. 289

Question No: 11 ( Marks: 1 ) – Please choose one

A series of constant, or level, cash flows that occur at the end of each period for some

fixed number of periods is called Perpetuity.

True

False

Question No: 12 ( Marks: 1 ) – Please choose one

A dollar in hand today is worth more than a dollar promised at some time in future.

True

False

.

Question No: 13 ( Marks: 1 ) – Please choose one

Profit Margin is calculated by dividing Net Income over Sales.

True

False

Question No: 14 ( Marks: 1 ) – Please choose one

While making Common Size Statements, Balance sheet items are shown as a percentage

of total liabilities.

True

False

Question No: 15 ( Marks: 1 ) – Please choose one

Present value of all the cash inflows can be calculated by compounding each cash flow

separately.

True

False

Question No: 16 ( Marks: 5 )

Cash Flows for a project are given below:

Period Cash Flows

1 Rs.8,000

2 Rs.12,000

3 Rs.20,000

4 Rs.35,000

5 Rs.40,000

Compute the Future Value of cash flow stream of project at the end of year 5 with a

compound annual interest rate of 14%.

Question No: 17 ( Marks: 5 )

Explain the difference between Simple Interest & Compound Interest with the help of

example.

Question No: 18 ( Marks: 5 )

.

A company has total annual sales (25% on cash basis) of Rs.3,000,000 and a gross profit

margin of 20 %. Its current assets are Rs. 500,000; current liabilities are Rs. 340,000;

inventories are Rs. 260,000; and cash is Rs. 60,000.

Calculate:

(a) How much average inventory should be carried if management wants the inventory

turnover to be 5 times? and

(b)How rapidly (in how many days) must accounts receivable be collected if

management wants to have an average of Rs.240,000 invested in receivables? (Assume a

365-day year.)

Question No: 19 ( Marks: 10 )

ST manufacturing company is offering the following bonds for issue. Calculate the value

of each bond.

Bond Par Value Coupon Rate Years to Maturity Req. Stated

(Rs.) (%) (Years) Return (%)

A 1,000 7 12 8

B 500 12 15 10

C 100 16 20 12

Note :

>>In case of Bond A, interest payments are made annually

>>In case of Bond B, interest payments are made semi-annually

>>In case of Bond C, interest payments are made quarterly

ALL NEW RESULTS
Educational News

Updated Educational News

Categories
POSTS BY DATE
December 2016
M T W T F S S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031