NEB 12 Finance Question paper 2080 (New course) subject code 4181

Group A

A . Very short  Answer Questions (11*1 =11)

1. What is business finance ?
2. which financial statements show the operating performance  of business ?
3. Write the meaning of Inventory turnover ratio ?
4. State any two features of common stock ?
5. Mention any two disadvantages of deft for the company ?
6. How the value of redeemable deft is calculated ?
7. Define the net concept of working capital ?
8. What do you mean by “stock dividend ” ?
9. State any two differences between multinational and domestic financial management ?
10. Himal steel company borrows Rs 10000 at the 15% interest rate under add on installment loan . If the loan is payable on 12 monthly installment . What is the approximate annual cost of loan ?
11. You want to import 100 laptops from Japan .cost per laptop 48000 yen in Japan . If the current exchange rate is rs 12 per 10 yen . How much should you pay for 100 Laptops ?

Must read NEB 12 !! New project ,replacement project and Diversification project || Finance Important Notes

Concept Of Macroeconomics (notes)

https://meropaper.com/business-entity-and-financial-environment-financial-enviroment-notes/

Group B

B . Short answer questions (8*5=40)

1. Assume you are appoint as a financial manager of a Company .What kind of roles will you play for financial planning and control ?
2. How do you prepare income statement . Illustrate ?
3. Explain main features of short term financing ?
4. B company has average selling price  per unit is Rs. 250 ,variable cost per unit Rs 200 and fixed cost is Rs 450000 . Find out Break even point in unit And in Rs .
5. Write about new project ,replacement project and diversification project ?
6. C company has an inventory conversion period of 50 days ,receivable conversion period of 25 days and payable deferral period is 15 days

Required :  a. Operating cycle

b. Cash conversion cycle

7.  Explain any five factors influencing dividend decision ?

8. Define spot rate and forward rate and distinguish between spot rate and forward rate ?

or

Consider the following exchange rate

US Dollor 1.00= Euro 0.8934

Canadian Dollor 1.3515= US Dollor 1.00

What is the cross rate of Euros to Canadian Dollors ?

Group C  

C . Long answers Questions                   ( 3*8=24)

1.  The following financial information of a company given as :

Current Assets         Rs 80,000

Inventory                  Rs 40,000

Current Ratio            2 times

Fixed Asset                 Rs 4,00,000

Long Term dept          Rs 1,00,000

Sales                               Rs 6,00,000

Net Profit                       Rs 60,000

Required (solve)

• Current liabilities
• Liquid Ratio
• Dept-Equity ratio
• Fixed assets Turnover Ratio
• Return on Equity
• Return on Capital Employed
• Inventory turnover ratio

2.  What procedure is adopted for valuing zero coupon bond ? Explain with example ?

or

Following information related to bond are given :

Maturity period                        7 year

par Value                                    Rs 1,000

Interest Rate                           0% (zero coupon)

Rate of return                          12%

Then find ,

*Value of Bond

   b . A company has just  paid a dividend of Rs 25 per share ,shareholders required a 16 % return from their investment . If expected rate of  growth is 10% per year and face value per share is Rs 100 .

Required
Value of stock at present

3. Following information is given as :

Cost of Capital : 10 %

Required

• Net present value of both projects
• Which project do you prefer and why ?

Note You Can Also download Question Paper here Neb 12 Finance Paper 2080