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Btm 220: Financial Management And Control Question Paper

Btm 220: Financial Management And Control 

Course:Bachelor Of Tourism Management

Institution: Rongo University question papers

Exam Year:2016



RONGO UNIVERSITY COLLEGE

BTM 220 : Financial Management and Control
CAT
1. Discuss the scope of finance. (10 marks)

2. a) In your opinion, what role does Nairobi Securities Exchange (NSE) have in the economic development of Kenya?Discuss. (5 marks)
b) You are a small and. medium entrepreneur (SME) which sources of finance would you go assuming you wanted more finance for your business. (5 marks)

3. a) The Management of GC Ltd. has proposed to invest Ksh. 100,000 in a project which will give earnings for 6 years as follows;
Year 1 2 3 4 5 5
Saving 30,000 20,000 20,000 18,000 18,000 12,000

Calculate pay-back period. (5. marks)

b) Explain various types of cost of capital. (5 marks)

4. a) X Ltd. Has 10% irredeemable debentures of Ksh 100,000.Par value of debentures is Ksh 100.Find out the cost capital, if debentures have been issued
(i) at par
(ii) at discount of 10%
(iii) at a premium of 10% (5 marks)

b) What are the limitations of ratio analysis. (5 marks)

5. Current Assets of a company are Ksh. 500,000. Its Current ratio is 2.5 : 1 and quick ratio is 1:1.Calculate the value of current liabilities, liquid asaets and stock.
(5 marks
b) Explain the irrelevance evidence of divident decisions. ( 5 marks)






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