M.B.A.

DEGREE EXAMINATION, NOVEMBER/DECEMBER 2010 Elective BA 9260 CORPORATE FINANCE (Regulation 2009) Time : Three hours Maximum : 100 Marks Answer ALL questions PART A (10 2 = 20 Marks) 1. What is a Capital Market? 2. What are the functions of EXIM Bank? 3. Define the term Working Capital. 4. Write a note on Inter Corporate Investments. 5. What are the factors which are favorable for making investments in an economy? 6. What steps should an investor follow to make an investment? 7. What is sensitivity analysis? 8. What is the need for dividend decisions in the organization? 9. What do you mean by corporate disasters? 10. Define stakeholders theory. PART B (5 16 = 80 Marks) 11. (a) Elaborate on the role and the relevance of SEBI in the development and regulation of the securities market in India. Or (b) Discuss the basic problems of industrial finance in India. 12. (a) Discuss the role of commercial banks as financial intermediaries. Or (b) Describe the need and determinants of working capital in a large scale manufacturing concern. 13. (a) Explain the nature of business risk, interest rate risk and market risk. Or (b) Evaluate sensitivity analysis as a method for assessing risk. 14. (a) The following data is available for Thermal Plastics Limited, a company that is not expected to pay dividend for a year : Stock price : Rs. 120 Exercise price : Rs. 110 Interest Rate : 0.14 Time to expiration : 1.0 Standard deviation : 0.4 What is the value of the call option as per the Black-Scholes option pricing model? Or (b) Discuss the relationship between the financing decision and dividend decision in a firm. 15. (a) Explain the key elements of organizational design and corporate governance. Or (b) Discuss the importance of social responsibilities of present day Business.