Exam No: _____________________
GANPAT UNIVERSITY
B.TECH SEM-VI (COMPUTER SCIENCE & BUSINESS SYSTEMS)
FIRST INTERNAL EXAMINATION – MARCH-APRIL 2024
2CSBSPE6105 : Advance Finance
Time: 1 Hour
Total Marks: 20
Instructions:
1) Figures to the right indicate full marks.
2) Be precise and to the point in your answer.
3) The text just below marks indicates the Course Outcomes Numbers, (CO) followed by the
Bloom’s taxonomy level of the question, i.e., R: Remember, U: Understand, A: Apply, N:
Analyze, E: Evaluate, C: Create.
Q1 Write the abbreviation of the following
[4]
1. TDS 2. TCS 3. CIBIL 4. SEBI
1R
Q2 Briefly explain the advantages of Trade credit. Express your views with a suitable example.
[4]
1U
Q3 Explain the term Debenture and Equity shares. How do you compare?
[4]
1U
Q4 What is a lease? Explain the different types of leases in brief.
[4]
2R
[Page turn over]
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Exam No: _____________________
GANPAT UNIVERSITY
B.TECH SEM-VI (COMPUTER SCIENCE & BUSINESS SYSTEMS)
FIRST INTERNAL EXAMINATION – MARCH-APRIL 2024
2CSBSPE6105 : Advance Finance
Time: 1 Hour
Instructions:
Total Marks: 20
1) Figures to the right indicate full marks.
2) Be precise and to the point in your answer.
3) The text just below marks indicates the Course Outcomes Numbers, (CO) followed by the
Bloom’s taxonomy level of the question, i.e., R: Remember, U: Understand, A: Apply, N:
Analyze, E: Evaluate, C: Create.
Q1 Write the abbreviation of the following
[4]
2. TDS 2. TCS 3. CIBIL 4. SEBI
1R
Q2 Briefly explain the advantages of Trade credit. Express your views with a suitable example.
[4]
1U
Q3 Explain the term Debenture and Equity shares. How do you compare?
[4]
1U
Q4 What is a lease? Explain the different types of leases in brief.
[4]
2R
[Page turn over]
Q5 The boyfriend of the daughter of the CEO of Establishment Industries takes her to the senior prom in [4]
a pearly white stretch limo. The CEO is impressed. He decides Establishment Industries ought to have 2AN
one for VIP transportation. Establishment’s CFO prudently suggests a one-year operating lease instead
and approaches Acme Limo lease for a quote.
Prepare the given table to give Acme’s forecast of operating, maintenance and administrative costs.
(Assume that he buys a new limo at $75,000 and the lease plan is 7 years. Furthermore assume that
zero inflation rate and 7 % real cost of capital. The salvage value is zero at the end of year 6)
0
1
2
3
4
5
6
Initial Cost
Maintenance cost etc
Tax Shield on costs
Depreciation tax shield
Total
PV at 7% = -98.15
Break-even rent (level)
Tax
Break-even rent after tax
Provide your conclusion too that whether the firm should go for buy or lease.
 -- END OF PAPER -- 
--------------------------------------------------------------------------------------------------------------------------
Q5 The boyfriend of the daughter of the CEO of Establishment Industries takes her to the senior prom in [4]
a pearly white stretch limo. The CEO is impressed. He decides Establishment Industries ought to have 2AN
one for VIP transportation. Establishment’s CFO prudently suggests a one-year operating lease instead
and approaches Acme Limo lease for a quote.
Prepare the given table to give Acme’s forecast of operating, maintenance and administrative costs.
(Assume that he buys a new limo at $75,000 and the lease plan is 7 years. Furthermore assume that
zero inflation rate and 7 % real cost of capital. The salvage value is zero at the end of year 6)
0
1
2
3
4
5
6
Initial Cost
Maintenance cost etc
Tax Shield on costs
Depreciation tax shield
Total
PV at 7% = -98.15
Break-even rent (level)
Tax
Break-even rent after tax
Provide your conclusion too that whether the firm should go for buy or lease.
 -- END OF PAPER -- 