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PPSC · PMS Punjab 2019

Business Administration, Paper II

100 marks · 3 hours · 9 questions
This paper Business Administration · all yearsQ. 2 · What is sustainable marketing? How…Q. 3 · Define product and the three…Q. 4 · Explain how discounts and allowances…Q. 5 · Discuss the role of personal…Q. 6 · Financial ratio analysis is often…Q. 7 · What is meant by "the…Q. 8 · TOR most recently sold 100,000…Q. 9 · XYZ Clothing Corporation could sell…Q. 10 · The current dividend of Bilal…With this paper← 20192020 →
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Not yet checked 1 of 9 questions have not yet been compared with the official paper.

Part I

Q. 2

What is sustainable marketing? How social media is contributing towards enhancing awareness of sustainable marketing?

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Q. 3

Define product and the three levels of product, discuss the brand development strategies marketers use to develop brands.

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Q. 4

Explain how discounts and allowances differ from promotional pricing. Also discuss the impact of economy on a company's pricing strategies.

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Q. 5

Discuss the role of personal selling in the promotion mix. In what situations is it more effective than advertising?

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Part II

Q. 6
  1. (a)Financial ratio analysis is often divided into areas of liquidity, activity, debt, and profitability ratios. Differentiate each of these areas of analysis from the others. [20]
  2. (b)Complete the 2018 balance sheet for XYZ Industries using the information that follows it. XYZ Industries Balance Sheet December 31, 2018 Assets Amount (Rs.) Liabilities and Stockholders' Equity Amount (Rs.) Cash 30,000 Accounts payable 120,000 Marketable securities 25,000 Notes payable ? Accounts receivable ? Accruals 20,000 Inventories ? Total current liabilities ? Total current assets ? Long-term debt ? Net fixed assets ? Stockholders' equity 600,000 Total assets ? Total liabilities and stockholders' equity ? The following financial data for 2018 are also available: # Data (1) Sales totaled Rs. 1,800,000 (2) The gross profit margin was 25% (3) Inventory turnover was 6.0 (4) There are 360 days in the year (5) The average collection period was 40 days (6) The current ratio was 1.60 (7) The total asset turnover ratio was 1.20 (8) The debt ratio was 60% [30]
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Q. 7
  1. (a)What is meant by "the present value of a future amount"? What is the general equation for present value? [5]
  2. (b)An Iowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. Savings Bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. [5]
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Q. 8

TOR most recently sold 100,000 units at Rs.7.50 each; its variable operating costs are Rs.3.00 per unit, and its fixed operating costs are Rs.250,000. Annual interest charges total Rs.80,000, and the firm has 8,000 shares of Rs.5 (annual dividend) preferred stock outstanding. It currently has 20,000 shares of common stock outstanding. Assume that the firm has a 40% tax rate.

  1. (a)At what level of sales (in units) would the firm break even on operations (that is, earnings before interest and taxes (EBIT) = Rs.0)? Calculate the firm's earnings per share (EPS) at the current level of sales and at 120,000-unit sales level. [5]
  2. (b)Using the current Rs.750,000 level of sales as a base, calculate the firm's degree of operating leverage (DOL). [5]
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Q. 9
  1. (a)XYZ Clothing Corporation could sell preferred stock with a dividend cost of 12 percent.
  2. (b)STU Milk Biscuits Corporation, holds a limited number of preferred stocks as investments.
Not yet checked
(10)
Q. 10

The current dividend of Bilal Company Ltd is Rs. 3 per share (common) and annual growth rate in dividends presently is 25 percent for first 2- years which is expected to fall to 20 percent for next 3 years. After that, it will become constant at 15 percent for indefinite period of time. The required rate of return on this common stock is 18 percent. Compute the intrinsic value per common share.

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The 2019 PMS Punjab Business Administration paper set by the PPSC. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet.

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