Principles of Finance Midterm Fall 2025 Question Paper — Study Guide & FAQ

What is the Principles of Finance Midterm Fall 2025 question paper?

This page hosts the Principles of Finance Midterm Fall 2025 question paper for DIU BBA students studying Principles of Finance (0412-123) during Fall 2025, Batch BBA 70. The PDF comes from our student archive — use it to learn the exam format, time yourself, and spot recurring topics.

What questions appear on this exam?

The transcript below shows real questions from this paper (OCR). Common themes include: Question 1: Read each of the questions carefully and answer precisely: (i) Define Ordinary Annuity. Explain the internal source of finance with examples. [CLO 01, L02, Mark: 3] (ii) Profitability High Low Liquidity High Low Risk High Low Return High Figure 1 Figure 2 Explain the principles of business finance illustrated in Figures 1 and 2, and discuss the relationships between the variables presented in each figure. [CLO 01, L02, Mark: 4] (iii) Describe the following terms: a. Spontaneous short-term finance [CLO 01, L02, Mark: 1.5] b. Compensating balance [CLO 01, L02, Mark: 1.5] Question 2: Apex Consumer Products Ltd. requires Tk. 8 crore (Tk. 80,000,; immediately to finance its seasonal working capital requirements. The finance manager is evaluating the following short-term financing alternatives:; The company purchases raw materials on the following credit terms: 2/10, Net 60 ii. A commercial bank is willing to provide a short-term loan of Tk. 10 crore at an annual interest rate of 13%. However, the bank requires a 10% compensating balance to be maintained throughout the loan period. iii. The company can issue commercial paper at a 7% discount rate with a maturity period of 180 days. The flotation cost for each issue is Tk. 200,.

• Question 1: Read each of the questions carefully and answer precisely: (i) Define Ordinary Annuity. Explain the internal source of finance with examples. [CL…
• immediately to finance its seasonal working capital requirements. The finance manager is evaluating the following short-term financing alternatives:
• The company purchases raw materials on the following credit terms: 2/10, Net 60 ii. A commercial bank is willing to provide a short-term loan of Tk. 10 crore…
• iv. A bank offers a revolving credit facility at an annual interest rate of 14%. A commitment fee of 0.50% is charged on the average unused portion of the cr…

How should DIU BBA students use this past paper?

Attempt the full paper once without notes, then mark questions you could not finish in time. Compare your work with class notes, the course hub, and any answer scripts linked on this page. Repeat weak chapters one week before your real exam.