Principles of Finance Midterm Fall 2025 Question Paper

0412-123 – Principles of Finance – Fall 2025 – BBA 70 – Midterm

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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) 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. 80,000,000) immediately to finance its seasonal working capital requirements. The finance manager is evaluating the following short-term financing alternatives:

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