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DRIVE PROGRAM SEMESTER SUBJECT CODE & NAME BK ID CREDIT MARKS

ASSIGNMENT WINTER 2013 MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2 II MB0045 FINANCIAL MANAGEMENT B1628 4 60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q.No Question Marks Total Marks 1 Capitalisation of a firm refers to the composition of its long term funds debt and equity. Discuss the theories of capitalization. 10 Explain each theory of capitalisation 2*5 2 A) The share of Megha Ltd is sold at Rs 500 a share. The dividend likely to be declared by the company after one year is Rs 25 per share. Hence, the price after one year is expected to be Rs 550. What is the return at the end of the year on the basis of likely dividend and price per share? B) A bond of face value of Rs 1000 and a maturity of 3 years pays 15% interest annually. What is the market price of the bond if YTM is also 15 %. 10 5 A Problem 5 B problem

Discuss the sources of capital of a company. Analyse the factors that affect the capital structure. 10 a) Sources 5 b) Factors that affect the capital structure 5

A project costs Rs 50,000. It is expected to generate cash inflows as shown in table. If the risk free rate is 10%, compute NPV. Year 1 2 3 4 Cash inflows 32000 27000 20000 10000 Certainty equivalent 0.9 0.6 0.5 0.3

10 Compute NPV 10 a) Annual demand of a company is 30,000 units. The ordering cost per order is Rs 20 (fixed) along with a carrying cost og Rs 10 per unitper anum. The purchase cost per unit i.e., price per unit is Rs 32 per unit. Determine EOQ, total number of orders in a year and the time gap between two orders. 10 a) EOQ 5 b) total number of orders in a year and 3 c) the time gap between two orders. 2 Discuss the dividend policy of Dabur India Ltd for the last three years. 10 Analyse the dividend policy of Dabur India Ltd. For 3*3 three years Comment on dividend policy 1