MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

2010 Jawaharlal Nehru Technological University, Hyderabad Code No: R05210102 R05 Set No. 1 II B.Tech I Semester Supplementary Examinations,June 2010 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS Question paper

Code No: R05210102 R05 Set No. 1
II B.Tech I Semester Supplementary Examinations,June 2010
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
Common to Civil Engineering, Metallurgy And Material Technology
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks

1. `A competitor under conditions of perfect competition is only price taker and quan-
tity adjustor' - In the light of the above statement, discuss clearly the important
features of perfect competition and how price output decisions can be taken. [16]

2. Write brie
y on the following: [16]
(a) Gin's paradox
(b) Demand schedule
(c) Income e ect
(d) Joint demand.

3. From the following three proposals select the best project using NPV method
at a discount rate of 12%. Initial investment is Rs.2,50,000/- for all the three
projects. [16]
(Amount in Rs.)
Cash
ows after tax and depreciation Proposal-I Proposal-II Proposal-III
1 year 90,000 1,60,000 1,20,000
2 year 1,60,000 1,20,000 90,000
3 year 1,20,000 90,000 1,60,000
4 year 70,000 50,000 30,000

4. What types of adjustments you generally come across while nalizing Accounts.
Illustrate any four of them with assumed data. [16]

5. What are the reasons for introducing company form of organizations and what are
its merits and limitations? [16]

6. (a) Discuss the law of variable proportions and also represent the same diagram-
matically.
(b) What are the assumptions for the application of law of variable proportions.
[8+8]

7. Write short notes on:
(a) Promotional elasticity of Demand
(b) Passive forecast
(c) Experts opinion method
(d) Unitary elastic demand. [16]

8. From the following data, calculate: [16]
(a) Debt Equity ratio
(b) Gross pro t ratio
(c) Net pro t ratio and
(d) Operating expenses ratio.
Rs.
Net Sales 30,00,000 Current liabilities 2,00,000
Cost of good sold 20,00,000 Paid up share capital 5,00,000
Net pro t 3,00,000 Debentures 2,50,000
Current Assets 6,00,000 Loan 1,25,000
KEYWORDS:MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS,MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS QUESTION PAPER,JNTU,JNTU QUESTION PAPER,JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD SUPPLEMENTARY EXAMINATIONS JUNE MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS