Paper of Business Administration CSS 2013 held on 05-03-2013, CSS 2013, Paper of Business Administration CSS held on 05-March-2013
SECTION A (MANAGEMENT)
Q2. Discuss importance of Planning in the organization. Briefly describe types of plans.
Q3. What criticism has been levelled against scientific approach to management? How the scientific approach to management is compared with behavioral approach?
Q4. Briefly comment upon contemporary theories of motivation.
SECTION B MARKETING
Q.5 Briefly describe how marketing strategy is formulated.
Q6. Discuss product attributes. Product can be differentiated on the basis of product attributes. Explain
Q7. What is integrated marketing communication? Comment on its major components.
SECTION C FINANCIAL MANAGEMENT
Q.8 You wish to borrow $10,000 for three years. The bank agrees to lend this amount if you are willing to pay them $16,000 at the end of three years. What is the implicit rate of interest implied if it is applied 1) Annually 2) Semiannually (to the nearest whole percent)?
b) An investment of $10,000 will return $130 per year forever. What is its internal rate of return?
Q9. Sapphire corporation is considering cash outlay of $ 800,000 for acquistion of new equipment. The useful life is four years and residual value is zero at the end of four years. After-Tax cash inflows of $200,000 are expected in year 1, 250,000 in year 2, $300,000 in year 3, $400,000 in year 4. The company falls in the tax bracket of 50%.
i) If the required rate of return is 15 percent, what is the net present value of the project? Is the project acceptable?
ii) What is the internal rate of return?
Q10. A stock currently sells for %50 per share. The market requires a 13% return on the firm’s stock. If the company maintains a constant 5% growth in dividends, what was the most recent dividend per share paid on the stock?
PART – I (MCQS) ( COMPULSORY )
Q.1 (i) Select the best option and fill in the appropriate circle on the OMR answer sheet ( 20 * 1 = 20 )
1. what are the earning per share (EPS) for a company that earned $ 100,000 last year in the after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end ?
(i) $ 100,000 (ii) $ 6.00 (iii) $ 0.50 (iv) $ 6.50
2. The decision function of financial management can be broken down into the decisions :
(a) financing and investment (b) investment,financing & asset management
(c) financing and dividend (d) capital budgeting, cash management and credit management.
3. You want to buy an ordinary annuity that will pay you $400,000 a year for next 20 years. You expect annual interest rate will be 8 percent over that time period. the maximum price you would be willing to pay for the annuity closest to :
(a) $32,000 (b) $39,272 (c) $40,000 (d) $80,000
4. Which of the following would NOT improve the current ratio ?
(a) Borrow short term to finance additional fixed assets
(b) Issue long term debt to buy inventory
(c) sell common stock to reduce current liabilities
(d) sell fixed assets to reduce accounts payable
5. Alto industry has a debt to equity ratio of 1.6 compared with the industry average if 1.4. this means that the company :
(a) will not experience any difficulty with its creditors
(b) has less liquidity than other firms in industry’
(c) will be viewed as having high credit worthiness
(d) has greater than average financial risk when compared to other firms in industry.