VIVEKANANDHA COLLEGE OF ENGINEERING FOR WOMEN

(AUTONOMOUS)
Tiruchengode - 637 205

MODEL EXAM– I
Third Semester
MASTER OF BUSINESS ADMINISTRATION
P19BAF06– CORPORATE FINANCE
(2019 – Regulation)

Date: 20.01.2022 Maximum: 100 Marks

Time: 3hrs
Answer ALL the questions

(10 x 2 = 20 Marks)

PART - A

Q.No Questions Marks KL CO

1. What is debenture financing? 2 K1 CO1

2. Define equity. 2 K2 CO1

Mention the role of commercial bank in industrial CO2

3. 2 K1
financing.

4. Draw working capital cycle. 2 K1 CO2

5. Define cash flow statement. 2 K2 CO3

6. How can rectify uneven cash flow? 2 K1 CO3

7. How will you calculate dividend payout ratio? 2 K2 CO4

8. Write a short note on cash adequacy and insolvency. 2 K1 CO4

9. State the SEBI guidelines on Corporate Governance. 2 K1 CO5

10. Give two examples of CSR done by MNC’s 2 K2 CO5

 PART – B
(5X13 = 65 Marks)
Q.No Questions Marks KL CO
Discuss the basic problems of industrial finance in India. How 13 K3 CO1
11.a
can these problems be addressed?
(OR)

11.b Describe the role of SEBI in corporate financing. 13 K3 CO1

Explain and discuss the various approached adapted by 13 K2 CO2

12.a
commercial bank.
(OR)

How working capital requirement assessed? Mention the need for 13 K2 CO2
12.b
assessing working capital requirements.

Elaborate about the decision tree approach in investment 13 K3 CO3

13.a
decision.
(OR)

13.b Highlight the importance of inter dependence of investment. 13 K3 CO3

Give a neat outline about the advantages and disadvantages of 13 K3 CO4

14.a
implementing liquidation in India.
(OR)

List out the various features of financing decision in the context 13 K3 CO4
14.b
of option privacy model.

Explain the salient features of SEBI guidelines in the context of 13 K3 CO5

15.a
good Corporate Governance.
(OR)

Explain why ethics and professionalism are considered for 13 K3 CO5

15.b
financial viability in organization with suitable examples.
 PART – C
(1X15 = 15 Marks)
Q.No Questions Marks KL CO
Aval Ltd. is engaged in the business of export of canvas goods
and bags. In the past, the performance of the company had
been up to the expectations. In line with the latest demand in
the market, the company decided to venture into leather goods
for which it required specialised machinery. For this, the
Finance Manager Prabhu prepared a financial blueprint of the
organisation’s future operations to estimate the amount of
funds required and the timings with the objective to ensure that
enough funds are available at right time. He also collected the
16.a relevant data about the profit estimates in the coming years. By 15 K3 CO4
doing this, he wanted to be sure about the availability of funds
from the internal sources of the business. For the remaining
funds, he is trying to find out alternative sources from outside.
a. Identify the financial concept discussed in the above
paragraph. Also, state the objectives to be achieved by the use
of financial concept so identified. (Financial Planning).
b. ‘There is no restriction on payment of dividend by a
company’. Comment. (Legal & Contractual Constraints)

(OR)
”A capital budgeting decision is capable of changing the
16.b financial fortunes of a business”. Do you agree? Why or why 15 K3 CO2
not?

***All the Best***

Subject Incharge HoD