Introduction to Corporate Finance

1. What is a corporation? Can you name some of the corporations which are located India?
US?
2. What is OPC (One Man Company)? Can you locate the differences between a joint stock
company and an OPC?
3. Can you explain in detail the three basic principles of CF?
4. Can you name some of the investment decisions? Capital structure decisions? Dividend
decisions?
5. What is hurdle rate? Can a company have different hurdle rate when riskiness in the
project moves upwards?
6. What do you understand by ‘interest payments to debenture holders are tax shielded’?
And why? What do you understand by financial risk?
7. What is the goal of corporate finance?
8. What do you understand by agency problem? What is agency cost?
9. State what financial markets facilitate?
10. What are bonds? Stocks?
11. What are fixed income bearing securities?
12. What is call and put provisions applicable to bonds?
13. What do you mean by convertible bonds?
14. What are the key reasons to issue bonds ahead of preference shares?
15. What is credit rating? Can you name some of the credit rating companies of India? US?
16. What are Zero Coupon Bonds?
17. What are NCDs?
18. What are Perps?
19. What are gilt edged securities?
20. What do you mean by secondary market? How it is different from primary market?
21. When NSE and BSE established? Where are they located? What they do? What are their
major indices? What indices tells us in broad?
22. What do you understand by outcry system of trading? How is it different from SBTS?
23. Why stock markets are called as barometers of the economy?
24. How many stock exchanges are there in India as on date?
25. How much is the daily cash market (equity) turnover differences between NSE and BSE?
26. What do you understand by WDM of NSE?
27. What are the functions of stock market?
28. What do you understand by private equity?
29. What is FPO? How it is different from IPO?
30. What are FCCBs?
31. What is Letter of Credit? Can you explain complete procedure of LCs wrt SBI? (Only
second part, out of syllabus)
32. What are factoring services? Can you name few firms in India who are providing
factoring services?
33. Explain the differences between pledge, hypothecation and mortgage?
34. Why government bonds are less known to the individual investors in India?
35. What are contract notes?
36. What is index? How free float index is calculated? (out of syllabus)
37. How a domestic company can raise capital internationally? (to some extent out of
syllabus)
38. What is NCFM and NISM? (out of syllabus)
39. How many companies are listed on BSE? NSE?
40. What is junior and or subordinated debt? Senior debt? (out of syllabus)
41. Can you write a note on Infosys’s corporate governance issue? Refer the
attachments for understanding some of the story. (out of syllabus)