UGC NET JRF Commerce PYQP 2025 June – Business Finance

1. A company hold raw material for 60 days. It gets credit from suppliers for 15 days, production process take 15 days, finished goods are held for 30 days and 30 days credit is given to debtors. Calculate the total working capital cycle.
   (a) 150 days
   (b) 120 days
   (c) 100 days
   (d) 90 days
2. ABC ltd. issued 2,000, 10% preference shares of Rs.100 each at Rs.95. Calculate the cost of preference shares.
   (a) 8.50%
   (b) 10.53%
   (c) 12.35%
   (d) 15.25%
3. Which of the following are the discounted cash flow techniques of capital budgeting?
   A. Payback Period
   B. Accounting rate of return (ARR)
   C. Net Percent Value (NPV)
   D. Internal Rate of Return (IRR)
   E. Profitability Index
   Choose the correct answer from the options given below:
   (a) A, C, D Only
   (b) B, C, E Only
   (c) C and D Only
   (d) C, D and E Only
4. A company has 10%, 20 lakh debentures. The EBIT of the company is Rs.5,00,000 and the equity capitalisation rate is 16%. Calculate overall cost of capital.
   (a) 9.5%
   (b) 10.8%
   (c) 12.9%
   (d) 14.5%
5. Match the List-I with List-II
   List-I (Concept)
   A. Present Value
   B. Future Value
   C. Future Value of Annuity
   D. Present Value of Annuity
   List-II (Formula)
   I. Cash flow × (1 + r)t
   II. Cash flow / (1 + r)t
   III. R (PVIFi, n)
   IV.R (FVIFAi, n)
   Choose the correct answer from the options given below:
   (a) A-II, B-I, C-IV, D-III
   (b) A-I, B-II, C-IV, D-III
   (c) A-III, B-IV, C-I, D-II
   (d) A-I, B-III, C-II, D-IV
6. Arrange the following steps of Multinational Capital Budgeting in correct order
   A. Estimate net cash flow from the project
   B. Determine net investment outlay
   C. Apply appropriate evaluation technique
   D. Identify appropriate discount rate
   Choose the correct answer from the options given below:
   (a) A, B, C, D
   (b) C, A, B, D
   (c) D, C, B, A
   (d) B, A, D, C
7. A company produces and sells 10,000 toys. The selling price per toy is Rs.500, variable cost is 200 per unit and fixed operating cost is Rs.25,00,000. Calculate operating Leverage.
   (a) 4 times
   (b) 5 times
   (c) 6 times
   (d) 8 times
8. Arrange the following exchange rate arrangements of international monetary system in chronological order (Old to New)
   A. Gold Standard
   B. Commodity Specie Standard
   C. Fixed parity System
   D. Floating exchange Rate
   Choose the correct answer from the options given below:
   (a) A, B, C, D
   (b) B, A, C, D
   (c) C, B, D, A
   (d) B, C, A, D

Answer Key