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14311 B.Com. [rd Semester (NEP) Examination, 2024 BUSINESS FINANCE Paper : I Time : 2 Hours | , MM. : 75 Note :- Attempt Four questions in all. One question out of two questions (15 marks each) is to be attempted from Section ‘A’. Remaining three questions (each carrying 20 marks) are to be attempted out of eight questions given in Section ‘B’. 7) ae :— ae an vei om ie) ave ‘a’ SB a we a a Ue Wet (sem 15 sth) aif Gus ‘a’ F as wei Fa ane ate wer (sels 20 sm) fea we EI Section-A (auS—31) [15x1=15] 14311/8 (1) K-11883 Turn Over Note :-— Attempt any one question. ae :— feat wa ver wr set cif! 1. “Finance is the life blood of an industry.” Elucidata this statement with suitable illustrations. “pg fat sini ar saa wa BI" ve HEA ST sere aed caren aAlfsm | Or (aaa) 2. What is capitalisation ? Explain the consequences of over-capitalisation and under-capitalisation ? Gstarr a 2 afe-qsitern ud aea-poieeer A ufos ol ore alfa Section—B (auUs-a) [20x3=60] Note :— Attempt any three questions. ate :— feet de wedi & om dfs 3. A company issued 2,000, 8% preference shares of = 100 each at 5% premium. These shares are redeemable after 10 years at a premium of 7%. The cost of issue is % 3 per share. Find out the cost of preference share capital if tax rate is 25%. 14311/8 (2) K-1183 Evaluate the two alternatives according to : (a) Pay-back period method (b) Return on investment method (average investment) Shi fanett ar qeaad aifsg : (A) Wattd safe fafa a aqaR (a) fafram a yer fafr & aqen (sited fafrar) 6. Distinguish between the following : (i) ARR and IRR (ii) NPV and PI (iii) Pay-back period and average rate of return (iv) IRR and NPV frafatad & Hea aan atfay : (i) ARR 3k IRR (ii) NPV 3x PI (ii) {ae vite ak shea vera = (iv) IRR sik NPV 14311 / 8 (4) Sar 7. What are the various sources of working capital financing ? Describe the owned sources under long-term sources of financing. aria sit faa vaes & fate aia ara & ? cara Get & seria earths al ar acl aif 8. Find out the: missing values and compute the return on capital employed from the following data related to R Company Ltd. and S Company. Ltd. : Particulars R Co. Ltd. | $ Co. Ltd. Sales for the year Not known = 80,000 Total Assets 1,40,000 |Not Known Net profit on sales 4% 20% Total assets turnover ratio | Not known | 0.375 times Gross profit ratio 30% 25% Gross profit ~ 3,00,000 | Not known ‘an’ mort fafaes am ‘va’ wert fetes 8 arated aaa @ aad Feat wa fafraioa Yst we yea at wT ifr : 14311 / 8 K-1188 Turn Over (iii) Production cost is estimated as under : Material % 2.50 per unit Labour & 1.00 per unit Overheads % 17,500 (iv) Customers are given 60 days’ credit and 50 days’ credit is availed from suppliers. (v) 40 days’ supply of raw material and 15 days’ supply of finished goods are kept in store. (vi) Production cycle is 20 days and all the materials are issued at the commencement of each production cycle. (vii) 1/3rd of average other working capital is kept as cash balance for contingencies. tae ue tf & ge ate ved Gan a X fares at 1 sass area dst at wor aif (i) arama fawt 20,000 gee via ad % 5 uit eae at aa i (i) senea a fawt @t aot Aa unt ¢ ok ata Wa BT a Ut wed EI . 1431] /8 (ch) K-1183 Twn Over be —n\ (ii) Some TTA fraad & : am &2.50 wha sare sry % 1.00 via sare aaa 74 & 17,500 Viv) mest & 60 fea at ara at ore & ait aargfecranstt 4 50 fea at ara wre ett eI (v) aed wea at 40 fer at gf ser dae are wt 15 fe at aff Sk A cet ort Bh (vi) sara ae 20 fea at am wee acer ae wey 4 a art fifa at ort FI (vii) a Shea ade Ysit ar 1/3at aT sreeferHasit ® faa zee | A tet am 21 14311/8 (8) K~1198 
