BBS 2nd Year Fundamental of Financial Management 2081 Questions with Answers

We have BBS 2nd Year Fundamental of Financial Management 2081 Questions with Answers.

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BBS 2nd Year Fundamental of Financial Management 2081 Questions with Answers

Following are the BBS 2nd Year Fundamental of Financial Management 2081 Questions.

1. What do you mean by profit maximization?

2. How does the annual rate differ from the effective rate?

3. State the name of three main financial statements.

4. Write the meaning of financial assets with examples.

5. What is stock repurchase in the context of dividend policy?

6. Write the meaning of capital structure and list out any two factors affecting capital structure decision.

7. Write about the elements of credit policy.

8. City bank has just issued 10 percent coupon bonds on the market with 15 years to maturity. Bonds have par value Rs. 1000. The bonds make annual payment and currently sell for Rs. 900. What is the current yield?

9. A firm has DOL of 1.2 times and DFL of 2.5 times. What is its degree of total leverage? If sales increases by 10 percent, by what percent net income will increase?

10. Bagmati Noodles Company’s inventory conversion period is 25 days, and an average collection period is 50 days. Account payable is paid approximately 35 days after they arise. Calculate the firm’s operating cycle and cash conversion cycle.

Group “B” – Descriptive Answer Questions

11. What is financial management? Discuss its scope in the business world. (10 Marks).

12. Who are the users of ratio analysis? How do they measure liquidity position and profitability of a firm?