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Assignment-2 FM MBA-204

This document outlines an assignment for MBA-II Semester students at Maharishi Markandeshwar Deemed to be University, focusing on Financial Management (MBA-204). It includes details on evaluation of investment proposals, working capital policies, and dividend strategies, with specific questions and marks allocation. The assignment is structured into two sections, A and B, covering various financial concepts and calculations.

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rajveersingh8757551949
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2 views

Assignment-2 FM MBA-204

This document outlines an assignment for MBA-II Semester students at Maharishi Markandeshwar Deemed to be University, focusing on Financial Management (MBA-204). It includes details on evaluation of investment proposals, working capital policies, and dividend strategies, with specific questions and marks allocation. The assignment is structured into two sections, A and B, covering various financial concepts and calculations.

Uploaded by

rajveersingh8757551949
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MAHARISHI MARKANDESHWAR DEEMED TO BE UNIVERSITY, MULLANA - AMBALA

(Established under Section 3 of the UGC Act 1956)


(NAAC Accredited Grade ‘A++’ University)
Assignment-2
Class & Semester:
Subject Name with Code: MBA-204 [Financial Management]
MBA-II Semester
Date of Assign: 20/04/2025 Date of Submission: 03/05/2025
Total Marks: 30

MM Institute of Management

COs Marks
To evaluate the various investment proposals under the conditions of
CO-03 uncertainty. 15

To develop a suitable policy for working capital and dividend for the
CO-04 organization. 15

Bloom’s Taxonomy Mapping Matrix


Bloom’s Taxonomy Q1
Q2 Q3 Q4 Q5
Levels a b c d
Level-6 (Create) -- -- -- -- -- -- -- --
Level-5 (Evaluate) -- -- -- -- -- -- -- 5
Level-4 (Analyzing) -- -- -- -- -- 4 4 --
Level-3 (Apply) -- -- -- -- 3 -- -- --
Level-2 (Understanding) 2 2 2 2 -- -- -- --
Level-1(Remembering) -- -- -- -- -- -- -- --

Note: The question paper is divided into two sections A and B.


Do write section and question number opposite each of your answer.
Section A
Note: Q.1 is compulsory. All parts carry equal marks (8 Marks)

Q.1 Write short notes on the following: COs PEOs POs PSOs
a) NPV vs. IRR 3 - 1 -
b) Significance of cost of capital 3 1 1 2
c) Classification of working Capital 4 1 1 2
d) Determinants of Dividend 4 1 2 -

Section B
Note: All Questions carry equal marks. (5.5*4=22 Marks)

Note Attempt all questions: COs PEOs POs PSOs


Unit-1
Describe the computation of cost of various sources of
Q.2 3 1 2 2
finance.
Q.3 A company is considering an investment proposal to 3 2 4 2
purchase a new machinery costing Rs 50,000. The
machine has a life expectancy of 5 years and no salvage
value. The company’s tax rate is 35% and it uses straight
line method of depreciation. The estimated cash flows
before depreciation and tax (CFBT) from the machine are
as follows:
MAHARISHI MARKANDESHWAR DEEMED TO BE UNIVERSITY, MULLANA - AMBALA
(Established under Section 3 of the UGC Act 1956)
(NAAC Accredited Grade ‘A++’ University)

Year CFBT
1 10,000
2 10,962
3 12,769
4 13,462
5 20,385
Compute the following:
(i) Average Rate of Return
(ii) Payback Period
(iii) Net Present Value@10% discount rate
(iv) Internal Rate of Return
The present value factor at Re 1 payable or receivable
annually for years is as below:

Year 5% 6%. 7% 8% 9% 10%

1.) 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909

2). 0.90703 0.89000 0 87344 0.85734 0.84168 0.82654

3) 0.86384 0.83969 0.81630 0.79383 0.77218 0.75131

4). 0.82270 0.79202 0.76290 0.73503 0.70843 0.68301

5) 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092

Unit-2
From the following information of Z Ltd, estimate the
working capital needed to finance a level of activity of
1,10,000 units of production after adding a 10% safety
contingency
Particulars Amount (per unit)
Raw materials 78
Direct Labour 29
Overheads (excluding depreciation). 58
Total Cost 165
Profit 24
Selling Price 189

Additional Information:
Q.4 i. Average raw materials in stock: 1 month
4 1 4 2
ii. Average materials in process (50% completion
stage): Half a month.
iii. Finished Goods in stock: 1 month
iv. Credit allowed by suppliers: 1 month
v. Credit allowed to customers: 2 months
vi. Time lag in payment of Wages: 1 ½ weeks
vii. Overhead expenses: 1 month
viii. 1/4th of the sales is on Cash basis. Cash balance is
expected to be Rs.2,15,000.
You may assume that the production is carried is carried
out evenly throughout the year & wages & overhead
expenses accrue similarly.
Discuss the concept of dividend and various Dividend
Q.5 models.
4 3 3 2
MAHARISHI MARKANDESHWAR DEEMED TO BE UNIVERSITY, MULLANA - AMBALA
(Established under Section 3 of the UGC Act 1956)
(NAAC Accredited Grade ‘A++’ University)

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