Fin621 Fall 2011 Final Term Feb 2012 – VU Current Paper – 06 Feb 2012

Total 69 qns
Long qns were of 3marks 3 qns and 5 marks k 4 qns.
Qn: a company wants to take a loan , this is the where where you already feel difficulty in recovery of cash … company also says the change in policy to pay back loan from 190 days to 90 days, would you preffer to give a loan to such company If yess/no give your reason . 3 marks
Qn: a company takes a loan of 100,000 rupess to use in the working capital, what would be the effect of this loan on working
capital , whether the company will be able to pay back it . give your logic 3 marks
Qn: I purchased some stock at 50,000 and sold it in some later time at 100,000 rupes, so in this way I have earned 10% on a
single entity of stock . criticize this statement . 3 marks
Qn: values were given we had to find liquidity ratios 5 marks