ACC501 Business Finance Final Paper March 2014

otal 64

mcqs 56 mostly from past papers

lng q 08

What do “Static Theory of Optimal Capital Structure” state?  3marks

What components a return normally have? 3

Difference between operating cycle and cash cycle? 3

Two securities A and B have expected returns of 20% and 14% respectively. Calculate expected return for portfolio of both two securities if portfolio weights are 45% for A and 55% for B.  5

Suppose a stock is selling for Rs.30 per share.The next dividend is Rs.1.50 per share and it is expected to grow by 5%. What dividend yield,capital gain yield, and total return this stock can offer.  5

Difference between carrying costs and shortage costs? 5

Second Paper:

Total Questions = 64
Total Marks = 88
Total 1 Mark
MCQ = 56
Total 3 Marks Short Questions=4
Total 5 Marks Long Questions =4

1-Numaric Question(find current assets?NWC & Current liabilities are given.) (3)
2-Numaric Question about finding cost of capital.(3)
3-Explain static theory of capital structure?(3)
4-with reference to manufacturing concern state different types of inventories?(3)
5-Diffrentiate the characteristics of leverage and un-leverage?(5)
6-State the characteristics of Auction Market and Dealer Market?(5)
7-Explain 5C of credit evaluation?(5)
8-Numaric Question about to find expected return for portfolio?(5)