Financial Decision Important Questions

1. Give the Formula for Financial leverage.

2. What is Financial BEP
3. What is Indifference point / Level in relation to Financial Leverage
4. What is Bridge Loan
5. The MM Thesis relating to the relationship between Capital Structure, cost of Capital
and Valuation is akin to the _____________ Approach written / drafted by _________.
6. What Dividend Pay out Ratio
7. What are convertible debentures ?
8. What is the importance of Debt Equity ratio
9. What is Explicit and Implicit costs
10. What is Financial risk.
11. What is Stock Split
12. What is Financial distress – Chapter 20
13. Explain Contingent Claims
14. What is EBIT – EPS Analysis.
15. NOI Approach is based on What propositions ? Page 19.8
16. Name any 5 Financial Institutions sponsored by Govt.
17. What is homemade leverage
18. What is book building process ? 1 mark
19. What is Bird in Hand Argument ? 1 mark
20. Write down the assumptions of Capital Structure Theories in brief
21. Explain the Dividend Behavior of Indian Companies
22. Explain in brief the factor governing the Capital Structure Design / Decisions
23. What is green shoe option ? 1 Mark
24. write in brief about Capital Structure Practices in India
25. Write in detail about Venture Capital Financing
26. What are the Limitations of Walter’s Model of Dividend ?

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27. Explain the Underwriting and Marketing of new issue
28. Explain the factors determining Dividend Policy
29. Write the formula for Black Sholes Equation
30. Mention the Steps involved in Public Issue by Listed Companies – Page 22.6
31. Explain the difference between Warrants and Convertible debentures
32. Write in brief about Indian Venture Capital Scenario – Page 26.16

Example 18.5
Example 19.6
Problem 20.1
Problem 20.2
Example 30.2
Problems of First Test