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"#e$t: F%n&n$%&' M&n&(ement )MBA *+,1. What do you mean by business finance? Discuss various approaches to finance function. 2. “Finance function is concerned with allocating funds to specific assets and obtaining the best mix of financing in relation to the overall valuation of the firm. Discuss. !. What do you understand by "usiness finance? #. What is financial management process? $. What is finance function? What are its ob%ectives? &. What is financial management? What ma%or decisions are re'uired to be ta(en in finance? ). “ *aximi+ation of profits is regarded as the proper ob%ective of investment decision, but it is not as exclusive as maximi+ing shareholders- wealth. .omment. /. 0xplain the ob%ective of financial management. 1. “Finance function of a business is closely related to its other functions. Discuss. 12. Why is maximi+ing wealth a better goal than maximi+ing profits? 11. 3ow should the finance of an enterprise be organi+ed? 12. .ritically analy+es the functions of financial manager in a modern business organi+ation. 1!. What is the concept of 4time value-? 5ame the techni'ues of 6ime value of money. 1#. What is time preference for money? 1$. Define the following7 8a9 :nnuity, 8b9 Discount rate, 8c9 Future value,8d9 :nnuity discount factor, 1&. “: rational human being has a time preference for money. What are the reasons for such a preference? 1). 0xplain the mechanics of calculating present value of cash flows giving suitable examples. 1/. What is ;is(? 3ow can ris( of an asset be calculated? 0xplain. 11. What are the types of ris( involved in an investment? :naly+e the ris( and return relationship in ta(ing <nvestment decisions. 22. “ 3igher the return, higher will be the ris(. <n this context, discuss the various ris( associated with an asset.
What is the need of capital budgeting? 0xplain the concept of capital budgeting and what is it-s practical utility? What do you understand capital budgeting process? 0numerate briefly the ma%or steps involved in capital budgeting.QUESTION BANK-+ CLASS: MBA IInd Semste S!"#e$t: F%n&n$%&' M&n&(ement )MBA *+. Write short notes on 7 8a9 profitability index. ). formulation. 8d9 5=> vs <. “ ...1. Discuss the problems of identification. &.8g9 accounting rate of return. 2. What do mean by appraisal of pro%ects? 0xplain the various considerations involved in such appraisal. #.8f9=ay bac( period method. $.apital expenditure.8b9 time ad%usted rate of return. 11. Discuss in detail the various stages involved in the execution and management of a pro%ect. appraisal and implementation of new pro%ects. 8c9 .apital "udgeting is long term planning for ma(ing and financial proposed capital outlays 0xplain. What is meant by financial leverage? 3ow does it magnify the revenue available for e'uity shareholders? 12. Distinguish between operating leverage and financial leverage. 1. Define capital budgeting. Do you thin( that they are related to capital structure? .apital rationing. Discuss the relation between debt financing and financial leverage. /. !.8e9 . What are the limitations of its.
/. 12. What are debentures? What type of debentures can a %oint stoc( company issue? 0valuate debentures as a source of funds. What do you understand by capital structure? What are the ma%or determinants of capital structure? 11. What is cost of capital? 0xplain the significance of cost of capital. 2. "etween e'uity shares and debentures which is profitable for raising additional long term capital for a manufacturing company and why? #. Write a brief note on commercial paper as a source of finance. 8e9 @elf financing.QUESTION BANK-. 1#. 0xamine. ). the lessee as well as the lessor . 12. Do you agree? 0xplain the various forms of ban( finance. What is factoring? $. .8b9 =reference share. What are the main sources of finance available to industries for meeting shortAterm as well as longAterm financial re'uirements? Discuss. CLASS: MBA IInd Semeste S!"#e$t: F%n&n$%&' M&n&(ement )MBA *+.. Dive a critical appraisal of the traditional approach and the *odiglianiA*illers approach to the problem of capital structure.onvertible debentures. “?easing is beneficial to both.1. 8b9 6he 5et Cperating <ncome 85C<9 approach.ommercial "an( provides only short term finance. “. What is weighted average cost of capital? 0xamine the rational behind the use of W:.. 1. . &. !. 1!. Bsing imaginary figure show how to determined the value of firm under 8a9 6he 5etA<ncome85<9 approach. What is relevance cost of capital in capital budgeting and capital structure planning decisions? 1$.8c9 0'uity shares.8d9 ?ease financing. Write short notes on7 8a9 .ritically examine the advantages and disadvantages of raising funds by issuing shares of different types.
#2. What do you understand by management of earnings? Discuss its scope. 2. 2). 2&. @tate the various advantages of stability of dividends? /. the dividend policy of a firm depends on availability of investment opportunity and the relationship between the firm-s internal rate of return and its cost of capital. ?ist the various constraints on =aying Dividends? 12. What do you mean by traditional approach to the dividend policy and what are its limitations? 1/. #1. 0xplain the capital structure decision from the point of view of minimi+ation of ris(. what other factors might a firm consider while ma(ing capital structure decisions? ##. What are the critical assumptions of *iller E *odigliani *odel? 22. <n Walter-s approach.etained earnings do not involve any cost . What are the assumptions of ** hypothesis? !2. What are the options available for Dividend decision? 1&. Describe in brief the various factors. What should be the form of dividends? 1$. ?ength of operating cycle is the ma%or determinant of wor(ing capital needs of a business firm. which are ta(en into account in determining the wor(ing capital needs of a firm. What are the sources of bonus issue? Write detailed note on the issue of bonus shares. 0xplain factors influencing the wor(ing capital. What should be the considerations in forming a credit policy? !).apitali+ation *odel? 22. 0xplain in detail about Dordon-s Dividend . analysis? 3ow is it useful as tool of inventory management? !1. 4Wor(ing capital management deals with decisions regarding the appropriate mix and level of current assets and current liabilities-. <f debt is cheaper source of finance. 3ow much should be paid out as dividends? What are the constraints on paying dividends? 1!. 0xplain the theories of dividend. What is :A"A.1. What is receivables management? 3ow is it useful for business concerns? !&. What factors would you ta(e into consideration in estimating the wor(ing capital needs of concern? 2$. !/. 2#. 3ow the consideration of control affects the composition of capital structure? #2. 2!. &. cash flow analysis and valuation models approach to determinations of capital structure. Discuss the wor(ing capital cycle. 3ow do dividends affect the value of a share? ). !$. What do you understand by cash management? 3ow can it be underta(en? 2/. !. ?ist the various models available for ta(ing dividend decisions? 1). Why stable dividend policy is dangerous? 1. What are the preferences of shareholders? Do they want dividend income or capital gains? 11. 0xplain the feature of 0"<6 A0=@ analysis.QUESTION BANK-/ CLASS: MBA Ist Semeste S!"#e$t: F%n&n$%&' M&n&(ement )MBA *+. @hould the company follow a stable dividend policy? 1#. What is meant by inventory management? Why is it essential to a business concern? !2. 0lucidate the statement. 0fficient cash management will aim at maximi+ing the cash inflows and showing cash outflows. Discuss any five factors relevant in determining the capital structure. What are the financial needs of the company? 12. 21. then why every firm is not a 11F debt firm? 0numerate the legal provisions in this respect.eceivables forecasting is important for the proper management of receivables forecasting. What do understand by retained 4retained earnings-? Discuss the merits and demerits of ploughing bac( of profits. Define the term wor(ing capital. . Do you agree? #. 3ow far do you agree that dividends are irrelevant? $. 3ow Walter *odel is different from Dordon-s Dividend . :naly+e critically of the :ssumptions of ** model in dividend decision? 21.apitali+ation *odel? 11. !!. 0xplain. “. <n addition to wealth considerations.an a firm have an optimal capital structure? What do you mean by flexibility of capital structure? !1. !#. . . #!.