BBS 2nd Year Fundamental of Financial Management 2078 Questions with Answers

We have BBS 2nd Year Fundamental of Financial Management 2078 Questions with Answers.

Find:

BBS 2nd Year Fundamental of Financial Management 2078 Questions with Answers

Following are the BBS 2nd Year Fundamental of Financial Management 2078 Questions.

1. Write the meaning of financial management.

2. How does ordinary annuity differ from annuity due?

3. Define the term risk. How is it measured?

4. What do you mean by cash break-even?

5. In what situations a firm prefers stock dividend?

6. Why does a firm prepare cash budget?

7. Lumbini Hotel has just issued 8 percent coupon bonds on the market with 7 years to maturity. Bonds have par value Rs 1000. The bonds make annual payment and currently sell for Rs 850. What is the approximate YTM?

8. A firm has DOL of 1.5 times and DFL of 2 times. Its net income is Rs 40,000. What is its degree of total leverage? If sales increases by 10 percent, what will be its new net income?

9. Gurash Pvt. Ltd. uses 10,000 units of a product per year on a continuous basis. The product has carrying costs of Rs 20 per unit per year and fixed costs of Rs 1000 per order. What is its EOQ?

10. Delicious Biscuit Company’s inventory conversion period is 30 days, and an average collection period is 40 days. Account payable is paid approximately 20 days after they arise. Calculate the firm’s operating cycle and cash conversion cycle.

Group “B”: Descriptive Answer Questions (Attempt only FIVE questions)

11. Explain the significance of working capital management.

12. The management of Pashupati Publication Pvt. Ltd. decided to buy a printer taking a loan of Rs 300,000 for 3 years from Bank of Asia. The loan bears an annual interest of 10 percent and calls for equal annual installment payments at the end of each of the 3 years.

a. Calculate the amount of annual payment. b. Prepare loan amortization schedule. c. Calculate equal monthly installment (EMI).

Answers of the Questions: