040001E482052001

Pages: 3

Reg No.: Name:

Max. Marks: 100

1

a)

b)

APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY

Eighth semester B.Tech degree examinations, September 2020

Course Code: IE482
Course Name: FINANCIAL MANAGEMENT

PARTA

Answer any two full questions, each carries 15 marks.
Distinguish profit maximisation and wealth maximisation approaches
The 0% interest credit sale of home appliances by an organisation is as follows
a)The items are sold on maximum retail price (MRP) without any discounts
b)The customer can pay the cost in 5 equal monthly instalments with 0% interest
directly to a financing agency
c)The financing agency advances the cost of the item to shopkeeper @ 11%
interest per annum
The shop keeper gets items at 30% discount on MRP from distributors and usually
he allows 10% discount to customer on cash purchases. If the MRP of washing
machine is Rs 30000/- calculate the profit of the seller , financial institution and
the customer if any.
How time series data shall be utilised in financial management explain with an
example.
Compare the cash flow statements and fund flow statements.
How financial ratios are bench marked? List and demonstrate debt ratios and its
interpretations.
Compare the three major decisions making requirements of finance manager.
List and explain the format of major financial statements used for analysis of
financial positions of organisations.
A house owner offers two options for renting his house a) Rent @ Rs 10000/- per
month and advance Rs 20000/- b) An advance of Rs 12 lakhs with no monthly
rent payment. The prevailing interest rate in market is 10%. Compare the schemes

and suggest best option for the customer if the renting term is 6 months.

Page lof 3

Duration: 3 Hours

Marks

(5)
(10)

(5)

(4)
(6)

(3)
(4)

(8)