Financial Management Midterm Summer 2026 Question Paper

1. "Profit Maximization and Shareholders' Wealth Maximization are not accorded equal priority by the financial manager of a company." Explain this statement by distinguishing between the concepts of profit maximization and shareholders' wealth maximization. Discuss why modern financial managers generally place greater emphasis on shareholders' wealth maximization as the primary objective of financial management. 03 2. Explain Capital Budgeting and its importance in financial management. 03 3. Assume that you have recently joined XYZ Manufacturing Ltd. as a financial analyst. The management has asked you to evaluate the company's financial performance and financial position using selected liquidity, solvency, activity, and profitability ratios. Based on the following information, estimate and interpret the Current Ratio, Debt Ratio, Accounts Receivable Turnover Period, Total Asset Turnover Ratio, Gross Profit Margin Ratio, and Return on Asset (ROA). 06 | Particulars | Tk. in Million | |---|---| | Net Sales | 75,000 | | Current Asset | 1,80,000 | | Current Liabilities | 85,000 | | Fixed Asset | 2,82,000 | | Cash | 55,000 | | Accounts Receivables | 39,000 | | Inventory | 86,000 | | Total Assets | 4,62,000 | | Total Liability | 2,62,000 | | Total Equity Capital | 2,00,000 | | Gross Profit | 66,000 | | Net Profit after Tax | 42,000 | | Long-term Liability | 1,77,000 |