FINANCIAL MANAGEMENT

MBA2,2016
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Briefly state three factors affecting cost of equity of a firm.

Write a short note on Gordons model on dividend.
Distinguish between IRR and NPV.
Explain the factors determining the cost of capital.

6) Write short notes on a) Stock splits. b) Operating Leverage. c) WACC. d) Preference Share . e)
Wealth maximization. f) Factors influencing capital structure g) Capital Rationing h) Motives of
Holding Cash i) Capital Budgeting under risk and uncertainties.
7) Critically evaluate Walters model of dividend decision. Compare with that of Modigliani-Millers
model.
8) State the advantages and disadvantages of having less debt in the capital structure.
9) State the importance of adding back of depreciation in capital budgeting decisions.
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11) Mr. X expects to receive Rs. 1,000 annually for 3 years, each receipt will occur at the end of the
year. What is the present value of this stream of benefits, if the discount rate is 10% ?
12) State briefly, the relationship between risk and return as per CAPM analysis.
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14) Write short notes on a) Motives of holding cash b) Amortization c) Yield to Maturity d) NOI
approach e) Degree of operating leverage.
15) Follow the questions of the year 2012: Q7, Q10. year 2010: Q7, year 2014: Q7, Q8,Q11.

Immunologic pregnancy test:

A method of detecting pregnancy through an increase in the concentration of human chorionic
gonadotropin (HCG) in the plasma or urine, as determined by the reaction of HCG with a specific
antiserum.
The hormone hCG is produced in the earliest stages of pregnancy. During early pregnancy it plays a role
in survival of the corpus luteum1 and has a significant role in the implantation of the blastocyst and
protection of the embryo against immune attack at the fetal/maternal boundary. The hormone is initially
produced by the embryo and therefore acts as a marker for its presence.
Levels of hCG rise rapidly and predictably in the earliest days of pregnancy and it usually first appears in
urine 9-10 days following the estimated day of conception when using the most sensitive laboratory
assays. The levels of hCG in early pregnancy have also been found to be highly similar between
women. This makes hCG an ideal urinary marker for quickly and accurately assessing whether a woman
is pregnant or not.
Qualitative hCG testing detects the presence of hCG and is routinely used to screen for a pregnancy. This
test may be performed by a laboratory, at a doctor's office, or at home using a home pregnancy test kit.
Methods will vary slightly but for most, a test strip is dipped into a collected cup of urine or exposed to a
woman's urine stream. A colored line (or other color change) appears within the time allotted per
instructions, usually about 5 minutes. For accurate test results, it is important to carefully follow the test
directions. (See the article on Home Testing: Avoiding Errors for more on this.) If the test is negative, it is
often repeated several days later. Since hCG rises rapidly, an initial negative test can turn positive within
this time period.
Quantitative hCG testing, often called beta hCG (-hCG), measures the amount of hCG present in the
blood. It may be used to confirm a pregnancy. It may also be used, along with a progesterone test, to help
diagnose an ectopic pregnancy, to help diagnose and monitor a pregnancy that may be failing, and/or to
monitor a woman after a miscarriage.
hCG blood measurements may also be used, along with a few other tests, as part of screening for fetal
abnormalities.
Occasionally, an hCG test is used to screen for pregnancy if a woman is to undergo a medical treatment,
be placed on certain drugs, or have other testing, such as x-rays, that might harm the developing baby.
This is usually done to help confirm that the woman is not pregnant. It has become standard practice at
most institutions to screen all female patients for pregnancy using a urine or blood hCG test before a
medical intervention, such as an operation, that could potentially harm a fetus.