Faculty of Management

Osmania University
Practical Question Bank
BBA (Business Analytics)
Semester VI w.e.f. 2021
COURSE CODE: DSE - 603
COURSE: (A) FINANCIAL ANALYTICS – II (F)

Total Marks: 35 Record : 10 Marks

Practical’s : 15 Marks
Viva Voice: 10 Marks
Record Work:
1. Input: Students must write the procedure/steps for the given
question /problem.
2. Process: Students must write Steps/ Navigations to execute
3. Output: Students must show the Result/Output and interpret the
results.
4. Use Excel

1. Prepare a proforma of CASH Budget (Monthly Basis) for the year 2024 of a listed
company.

2. For the data given below perform date and time functions.

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 a. Extract the year from the "Transaction Date" column and place it in a new
column.
b. Extract the full month name from the "Transaction Date" column.
c. Extract the day of the month from the "Delivery Date" column.
d. Find the day of the week (e.g., Monday, Tuesday) for each "Payment Due
Date."
e. Calculate the number of days between the "Transaction Date" and
"Delivery Date."
f. Add 15 days to each "Transaction Date" to determine a hypothetical
revised delivery date.
g. Calculate the delay (in days) between the "Payment Due Date" and the
"Delivery Date."
h. Identify the quarter (e.g., Q1, Q2) of the year for each "Transaction Date."
i. Find the last day of the month for each "Transaction Date."
j. Calculate the week number of the year for each "Delivery Date."

3. For the data given above perform time functions

a. Using the WORKDAY function, calculate the next working day after 10
business days from the "Transaction Date." Assume weekends are non-
working days.
b. Calculate the total number of working days between the "Transaction
Date" and "Payment Due Date," excluding weekends.
c. Calculate the difference in months between the "Transaction Date" and
"Payment Due Date."
d. Use the NOW function to generate the current date and time, and
compare it with the "Delivery Date" to find overdue orders.
e. Use the EDATE function to calculate a future due date by adding 6 months to the
"Payment Due Date."
f. Create a custom column to flag transactions that are overdue by more than 30 days
using an IF function.

4. From the data given in Question 2, Calculate the durations of

Calculation-Based Questions
a. Calculate the number of days between the "Transaction Date" and
"Payment Due Date" for each transaction.
b. Determine the number of months between the "Transaction Date" and
"Delivery Date."
c. Calculate how many years have passed since the "Transaction Date" for
each transaction, assuming today's date.
d. Add 45 days to each "Transaction Date" to find the projected due date for
an extended payment period.
e. Convert the number of days between the "Transaction Date" and

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 "Delivery Date" into weeks (round to 2 decimal places).
5. From the data given in Question 2, Calculate the durations of
Calculation-Based Questions

a. If the "Delivery Date" exceeds the "Payment Due Date" by more than 7
days, flag it as "Late Payment" in a new column.
b. Calculate the average number of days between the "Transaction Date"
and "Delivery Date" for all transactions.
c. Calculate the midpoint date between the "Transaction Date" and the
"Payment Due Date."
d. Calculate the total working days (excluding weekends) between the
"Transaction Date" and "Payment Due Date."
e. If a customer has to pay in 3 equal monthly installments starting from
the "Payment Due Date," calculate the payment schedule dates.

6. For the table given in Q2, find

a. If a service contract starts on the "Transaction Date" and lasts for 3
years, calculate the exact contract expiry date.
b. If a company faces a penalty of ₹500 per day for delayed payments
beyond the "Payment Due Date," calculate the penalty for each late
transaction.
c. Calculate the cumulative total of days between "Transaction Date" and
"Delivery Date" for all transactions.
d. For a 28-day billing cycle starting from the "Transaction Date," identify
the next three billing dates.
e. If payments are due 30 calendar days after the "Transaction Date" but
should shift to the next working day if the due date falls on a weekend,
calculate the adjusted due dates.

7. The following forecasts have been made for ABC Ltd. For the period January to
April 2021.

Additional information:
a. All sales are made on the credit basis. 2/3 debtors are collected in the

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 same month and balance in the next month. There is no expected bad
debt. The debtors on January 1, 2021 were Rs. 30000.
b. The minimum cash balance, the firm must have is estimated to be Rs.
5000, however, the cash balance on January 1 was Rs. 6500.
c. Borrowing if any, can be made in multiple of Rs. 100 only.
Prepare the cash budget for the period of 4 months ( ignore interest on
borrowings)
8. You are required to find out the Cash inflows and cash outflows for the first six
months on the basis of the following information: Sales on credit, variable costs
and wages are budgeted as follows( the November and December figures of the
previous year being the actual figures for those months).

Additional Information
Fixed expenses amount to Rs. 1500 per month, and the half year’s preference
dividend of Rs. 1400 is due on June 30.
Advance tax amounting to Rs. 8000 is payable in January and progress
payment under a building contract are due as follows: March 31, Rs. 5000 and
May 31, Rs. 6000.
Variable costs are payable in the month following that in which they are
incurred, and 50% are subject to 2 ½ discount, and the balance are net. It is
found that 75% of debtors to whom sales are made pay within the period of
credit and the remainder do not pay until the following month. The company
pays all its accounts promptly.

9. From the information and the assumption that the cash balance in hand on 1 st
January 2021 is Rs.72,500, prepare a cash budget. Assume that 50% of total
sales are cash sales. Assets are to be acquired in the months of February, and
April. Therefore, provisions should be made for the payments of Rs. 8000 and
Rs. 25000 for the same. An application has been made to the bank for the
grant of a loan of Rs. 30000 and it is hoped that loan amount will be received in
the month of May. It is anticipated that the dividend of Rs. 35,000 will be paid

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 in June. Debtors are allowed one month’s credit. Creditors for materials
purchased and overheads grant one month’s credit. Sales commission at 3% on
sales is paid to the salesman each month.

10. Lal & Co has given the forecast sales for January 2020 to July 2020 and actual
sales for November and December 2019 as under. With the other particulars
given, prepare a cash budget for the months, from January to May 2020.
(i)

(ii) Sales 20% Cash, and 80% credit, credit period has two months.
(iii) Variable expenses 5% on turnover, time lag of half month.
(iv) Commission 5% on credit sales payable in two months.
(v) Purchases are 60% of the sales. Payment will be made 3rd month of
purchases.
(vi) Rent Rs. 6000 paid every month.
(vii) Other payments : Fixed assets purchases – February Rs. 36000 and
March Rs. 100000 ; Taxes – April Rs. 40000.
(viii) Opening cash balance Rs. 50000

11. The following figures relate to one year work in a manufacturing business:

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 I
n

R
s
Particulars .
1
2
0
0
Fixed Overheads 0
2
0
0
0
Variable Overheads 0
1
5
0
0
Direct Wages 0
4
1
0
0
Direct materials 0
1
0
0
0
0
Sales 0
Represent each of the above figures on a break even chart and determine from
the chart the break even point.

12. From the following particulars,

a. Draw a break even chart and find out break even point.

3
Variable cost per unit 0
1
0
0
0
0
Fixed expenses 0

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 5
Selling Price per unit 0
b. What should be the selling price per unit if the breakeven point should be
brought down to 4000 units.
c. If the present value of sales is Rs. 400000, what is the margin of safety
based on the data given.
d. What should be the selling price per unit if the break-even point should
be 6500 units.

13. From the following results of a company, determine by how much the value of
the sales must increase by the company to break even. use goal seek.
(i) Net sales: 4,00,000 Fixed costs: 2,00,000 Variable cost 2,40,000.
(ii) Net Sales : 10,000, Fixed Costs: 600000, Variable cost 450000
(iii) Also draw present the data graphically.

14. An analysis of costs of a company led to the following information.

Shutdown
Variable cost cost
Direct materials 33.6 Nil
Direct labour 28.4 Nil
Factory over head 11.6 166700
Distribution expenses 3.3 63,400
General and
administration expenses 1.1 99000
Budgeted sales for the next year 2000000

You are required to determine

a. The break even sales volume using goal seek.
b. The profit at the budgeted sales volume.
c. The profit if actual sales (a) drop by 12.5% (b) increase by 10% d. sales to
generate a profit of Rs. 320000.

15. For the following data

Initial Projections
Selling price
per unit 10.25
Units sold 15000
Cost per unit 5
Variable costs 15000
Fixed costs 20000

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 Profit 1250
(a) Find break even point for volume using goal seek.
(b) Find break even point for selling price.
(c) Find break even for cost per unit.
(d) What will be the sales if the profit should increase by 15%.

16. Calculate the break even point using scenario analysis for the data given below.
Variable
Selling Price
Scenario Fixed Costs Cost per
per Unit
Unit
Base Case $50,000 $50 $30
Best Case $45,000 $60 $25
Worst Case $60,000 $40 $35
Optimistic Case $40,000 $55 $28
Pessimistic Case $70,000 $45 $40

17. Assuming the fixed costs to be Rs. 50000, and from the given data
Variable
Selling Price Sales Interest
Scenario Cost per
per Unit Volume Expense
Unit
Base Case $30 $50 5,000 $10,000
Best Case $25 $60 6,000 $10,000
Worst Case $35 $40 4,000 $10,000
Optimistic Case $28 $55 5,500 $10,000
Pessimistic
$40 $45 4,500 $10,000
Case

a. Calculate contribution margin

b. Calculate operating income (EBIT)
c. Calculate Operating leverage
d. Calculate Financial Leverate
e. Calculate Net Income
f. Interpret your results.

18. The data relating to two companies are given below:

Particulars Company A Company B

Capital 600000 350000

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 Debentures 400000 650000
Output ( units ) per annum 60000 15000
Selling Price per unit 30 250
Fixed costs per annum 700000 1400000
Variable cost per unit 10 75

You are required to calculate the operating leverage, Financial leverage and
combined leverage of two companies and interpret the results.

19. For the above data apply scenario analysis

a. Output increased or decreased by 10%
b. Selling price by adjusting ± 12% to see how it affects the key metrics
c. Variable costs by adjusting ± 10% to evaluate the impact on leverage
d. Fixed costs by ± 10% to observe the influence on leverages.

20 XYZ & Co has three financial plans before it. Plan I, Plan II and Plan III.
Calculate the operating, financial and combined leverage for the firm based on
the following information and also find out the highest and lowest value of
combined leverage.

Production 800 Units

Selling price per unit Rs. 15
Variable Cost per unit Rs 10
Fixed cost :
Situation A Rs. 1000
Situation B Rs. 20000
Situation C Rs. 3000

Capital Structure Plan I Plan II Plan III

Equity Capital Rs 5000 Rs. 7500 Rs. 2500
12% debt 5000 2500 7500

21 An investment of ₹50,000 is made at an annual interest rate of 8%,

compounded quarterly, for 5 years. Calculate the Future Value (FV) and the
Present Value (PV) using Excel formulas.

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22. The choice is to be made between two competing projects which require an
equal investment of Rs. 50000 and are expected to generate net cash flows as
under

Project 1 Project 2
End of year 1 25000 10000
End of year 2 15000 12000
End of year 3 10000 18000
End of year 4 0 25000
End of year 5 12000 8000
End of year 6 6000 4000
cost of capital 10%
The cost of capital of the company is 10%. Compute the Net Present value and
Internal Rate of Return and suggest which project is acceptable.

23. Consider an investment in a project that requires an initial investment of

₹100,000. The project will generate equal annual cash flows of ₹25,000 for the
next 6 years. The cost of capital is 8%.

1. Calculate the Net Present Value (NPV) of the project.

2. Calculate the Internal Rate of Return (IRR) of the project.
3. Should you accept the project if the cost of capital is a) 8% b) 105
c)12%?

24. XYZ Ltd is evaluating a project having following series of cash flows:

Find out the NPV and IRR of the project.

If the discount rates ranges from 0% to 45%, calculate NPVs and draw a
suitable graph.

25. The following are the details of the project.

Initial outlay Rs. 80000
Initial working capital Rs.20000
Cash flows before depreciation and taxes:

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 1st year Rs. 35000
2nd year Rs. 35000
3rd year Rs. 30000
4th year Rs. 30000
5th year Rs. 20000
The project is depreciable on straight line basis. If the required rate of return is
10% which is the project acceptable under the NPV and IRR criteria? Tax rate is
50%.

26. A firm is contemplating the following projects. Which one is better according
to you?

Year Project A Project B

0 -100000 -100000
1 25000 35000
2 24000 20000
3 23000 24000
4 20000 23000
5 15000 18000
Closing NPV, Profitability Index and pay back period evaluate the projects
assuming a 10% discount rate.

27. A firm whose cost of capital is 10% is considering two mutually exclusive
projects A and B, the details of which are

Compute the NPV at 10% and suggest the best project.

28. Calculate Internal rate of return and Net present value for the following data.
Values Dates
-20000 Jan,1,2018
5500 Mar,1,2018
8500 Oct,30,2018

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 6500 Feb,1,2019
5500 Apr,1,2019
With 9% rate of interest.

29. XYZ Ltd has two proposals, A and B out of which one is to be selected by
financial modelling. Necessary information for these projects is given:

30. Which of the following two proposals is riskier? Calculate and give your
opinion using sensitivity analysis for selecting one of the proposals.

Cash flows is to be estimated for 10 years and the cost of capital is 14%.

31. Rao and Co., provides the following estimates to the present values of the future
expected cash flows after taxes associated with investment proposal relating to
the plant expansion.

The plant expansion costs Rs. 400000. You are required to advice Rao and Co,
regarding the financial feasibility on the investment with the use of decision tree
approach.

32. An investment requires an initial outlay of ₹100,000 and generates the following
cash flows over 5 years:
₹20,000, ₹30,000, ₹40,000, ₹50,000, and ₹60,000.
The cost of capital is 10%.

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 Calculate NPV and IRR using
a. If cash flows increase by 20% or decrease by 20%.
b. If the cost of capital varies from 3% to 30%.
c. Find the cash flow in Year 3 that makes the NPV equal to ₹50,000.

33. The following are the details of a bond of a company.

Calculate the following in excel.

a. Nominal yield
b. Current yield
c. Holding period return
d. Yield to Maturity
e. Approximate yield to maturity
f. Yield to call

34. The following are the details of a bond of a company.

A company issues a 10-year bond with the following details:
 Face Value: ₹1,000
 Coupon Rate: 8% (semi-annual payments)
 Issue Price: ₹920 (discounted bond)
 Callable after: 4 years at ₹1,080 (call premium included).
 Market Price after 3 years: ₹970
 Current Market Price: ₹1,050
 Holding Period: Assume you hold the bond for 3 years.

Calculate the following in excel.

a. Nominal yield
b. Current yield
c. Holding period return
d. Yield to Maturity
e. Approximate yield to maturity
f. Yield to call

35. Calculate the YTM and AYTM of the following bonds:

(i) A 15% 10 year bond with a current market price of Rs.680

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 (ii) A 7% , 15 Year bond with current market price of Rs. 750
Compare both the bonds and give your inferences.

36. Calculate Macaulay’s Duration of a three year bond that has a par value Rs.
2000, Coupon rate 15% annual and YT 10% and maturity 3 years.

37. Calculate Macaulay’s Duration of a bond whose face value if Rs. 2000 with a
coupon rate of 12% and 18 years to maturity. Assume market capitalization (
YTM ) as 10%. And the interest is paid semi annually.

38. For the data given below:

(i) Prove that yield to maturity is inversely related to price of the

bond for the following data.
(ii) With yield 15% , and maturity 3 years and 6 years for Bonds A
and B, then prove that the larger the period, the greater will be
the price change.

39. Consider a bond with face value of Rs. 1000 and carrying a coupon rate of 10%.
Calculate the market value of a bond with maturities 3,5,and 8 years at YTM
12% and 14%.

40. The face value of a bond is Rs. 1000. Coupon rate is 105. Period for maturity
is 5 years. Calculate the market value of the bond, when the YT is 12%?
Calculate the capital gain/loss. When YTM changes to 8% and 16%. Which
bond theorem’s these results substantiate.

41. Consider the following data:

Calculate price of a bond A and Bond B when the YTM is 12% and 14%.

42. XYZ Ltd. is a company that has been paying consistent dividends to its
shareholders. The company’s stock price and dividends are expected to grow in
the future based on its historical growth rates. Using the Dividend Discount

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 Model (DDM), calculate the intrinsic value of the stock and analyze if it is
undervalued or overvalued compared to its current market price.

43. The latest dividend paid on the equity of firm is Rs. 1.11 per share and these
dividends are expected to grow at a superior growth rate of 9% p.a. for the next
four years. Later the growth rate in dividends is expected to normalize to
4%p.a. till distant future. Assuming an equity capitalization rate of 10%, find
the intrinsic value of the share.

44. From the following information – the earnings of a firm are growing at 10% p.a.
and this growth is expected to continue for a long period. The latest EPS of the
firm is Rs.5.80. The required rate of return is 15% and the retention ratio is
50%. Find the intrinsic value of the share today, after 2 years and after 5
years.

45. Determine beta and Alpha of Bajaj Auto from the following data:

46. Given rf = 6% and ̅̅̅

𝑟𝑚 = 15% and expected returns and expected betas are as
follows:

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 Which stock is overvalued and which is undervalued, related to expected
return?
47. Assume yourself as portfolio manager and with the help of the following details,
find out the securities that are over priced, and underpriced in terms of SML.

48. A portfolio consists of 40% of Security X and 60% of security Y. It has the
following probability distribution of returns. Calculate the portfolio return and
risk.

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49. From the following data provided by Mr. Ajay, who have invested 40% in
Security X, 35% in Y and 25% in Z by forming a portfolio. The risk and return
of the securities is given below:

Calculate the risk and return of the portfolio.

50. Find the variance and standard deviation of a portfolio of 3 securities P, Q and
R with the following characteristics.

What would be the variance and the standard deviation if each security has
equal weightage.
51. An investor has identified 3 assets A,B and C and a risk free asset D, which he
wants to include in a portfolio. He is considering different combinations of the
assets. Find the expected return and standard deviation of each combination
from the following:

The combinations are,

Portfolio 1: invest all funds in risk free asset
Portfolio 2: Invest equal amounts in A, B and C
Portfolio 3: Invest in 75% in B and 25% in C
Portfolio 4: Invest in 50% in A and 50% in B
Portfolio 5: Invest all funds in A.

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