FINANCIAL MANAGEMENT

QUESTION BANK

UNIT I

Part A

1. What is Finance?

2. List the types of finance.

3. Define Financial management.

4. What is risk and return?

5. What is time value of money?

6. Define Bond.

7. What do you mean by shares?

8. Write a short note on Equity and Preference shares.

9. What is Present value and Future value of money?

10. State Option valuation.

11. State the objectives of financial management.

Part B

1. Explain briefly about the different decisions of financial management and the functions of
financial manager.

2. Describe in brief about the objective, scope and importance of financial management.

3. Problems on Time value of money

4. Problems on risk and return of a single asset and portfolio

5. Explain the Valuation of bonds and shares.

6. Discuss briefly about Option valuation.

UNIT II

Part A

1. Define Capital Budgeting.

2. What is investment decision?

3. List the techniques of capital budgeting.

4. What is NPV?

5. What is ARR?

6. What is IRR?

7. State profitability index.

8. Define Payback period.

9. Define Inflation.

10. What is cost of capital?

11. Define capital rationing.

12. State the nature of capital budgeting.

Part B

1. Describe briefly about the different techniques of capital budgeting.

2. Problems on Payback, NPV, IRR, PI, ARR.

3. Explain project selection under capital rationing.

4. Describe the concept and measurement of cost of capital.