8/14/2019 MB0045-B1628-Desriptive QP.pdf
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Master of Business Administration (MBA) - Semester II
Descriptive Practice Question Paper
MBA Financial Management MB0045
Book ID (B1628)
(4 Credits)
Sl.
No.
Question Marks
1. Hindustan Unilever Limited (HUL) is India's largest Fast
Moving Consumer
Goods Company with a heritage of over 75 years in India and
touches the
lives of two out of three Indians. Do you think that HUL has
preferred the
profit maximisation approach over the wealth maximisation
approach?
Justify your answer.
Refer Unit 1
10
2. A bond with a face value of Rs. 100 provides an annual return
of 8% and pays Rs.
125 at the time of maturity, which is 10 years from now. If the
investors required
rate of return is 12%, what should be the price of the bond?
Refer Unit 4
10
3. Discuss why NPV leads to better investment decisions than
other criteria. A
project costs Rs.25000 and is expected to generate cash inflows.
The cost of capital
is 12%. Compute the NPV of the project.
Table: Cash Inflows
Year Cash inflows
1 10,000
2 8,000
3 9,000
4 6,000
5 7,000
Refer unit 8
10
4.A jewellery company has the items of following stocks.
Diamonds, Platinum,
Gem stones, gold and silver. Classify them as per ABC
principles. (5 marks)
Annual demand of a company is 30,000 units. The ordering cost
per order is Rs.
20(fixed) along with a carrying cost of Rs. 10 per unit per
annum. The purchase
cost per unit i.e. price per unit is Rs. 32 per unit. Determine
EOQ, total number of
orders in a year and the time-gap between two orders. (5
marks)
Refer unit 13
10
