Summer / May 2012

Master of Business Administration- MBA Semester 2 MB0045 Financial Management - 4 Credits (Book ID: B1134) Assignment Set- 1 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Q2. Q3. Q4. Q5.

What is Financial Management? Explain its importance. What is meant by Capital budgeting? Explain the importance of capital budgeting. Describe the concept of working capital. What are the types of leverages? What is the implication of operating leverage for a firm? Explain the factors affecting Financial Plan.

Q6.

Mr. X purchases a bond whose face value is Rs.1000, and which has a nominal interest rate of 8%. The maturity period is 5 years. The required rate of return is 10%. What is the price he should be willing to pay now to purchase the bond?

Summer / May 2012

Master of Business Administration- MBA Semester 2 MB0045 Financial Management - 4 Credits (Book ID:B1134) Assignment Set- 2 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Q2. Q3. Q4.

What is meant by operating cycle? Explain Discuss the concept of capital rationing. Write short notes on (a) Cost of Capital and (b) Stock split Discuss the techniques of inventory control Examine the features of decision tree analysis. The following data is available in respect of a company : Equity Rs.10 lakhs, cost of capital 18% Debt Rs.5 lakhs, cost of debt 13% Calculate the weighted average cost of funds taking market values as weights assuming tax rate as 40%

Q5. Q6.