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    DMGT207 8

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    rjaggi0786
    The document is a question paper for a course on management of finances. It contains two parts, with part A consisting of 10 short answer questions and part B consisting of 6 long answer questions to attempt. The questions cover various topics related to financial management including capital structure, capital budgeting, working capital management, and different sources of finance.

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    DMGT207 8

    Uploaded by

    rjaggi0786
    28 views1 page
    The document is a question paper for a course on management of finances. It contains two parts, with part A consisting of 10 short answer questions and part B consisting of 6 long answer questions to attempt. The questions cover various topics related to financial management including capital structure, capital budgeting, working capital management, and different sources of finance.

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    notes of ba

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    DMGT207_8

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    The document is a question paper for a course on management of finances. It contains two parts, with part A consisting of 10 short answer questions and part B consisting of 6 long answer questions to attempt. The questions cover various topics related to financial management including capital structure, capital budgeting, working capital management, and different sources of finance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views1 page

    DMGT207 8

    Uploaded by

    rjaggi0786
    The document is a question paper for a course on management of finances. It contains two parts, with part A consisting of 10 short answer questions and part B consisting of 6 long answer questions to attempt. The questions cover various topics related to financial management including capital structure, capital budgeting, working capital management, and different sources of finance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Registration No.

    :__________________
    PNR No:: 117181DMG467667
    COURSE CODE : DMGT207
    COURSE NAME : MANAGEMENT OF FINANCES
    Time Allowed: 03:00 hrs Max.Marks: 80
    1. This question paper is divided into two parts A and B.
    2. Answer all the questions in serial order.
    3. Part A contains 10 questions of 2 marks each. All questions are compulsory.
    4. Part B contains 10 questions (Questions 2 to 11) of 10 marks each, attempt any 06 questions out of 10.
    Attempt all parts of the selected question. Only first 06 attempted questions would be evaluated.
    5. The student is required to attempt the question paper in English medium only.
    6. Simple non programmable calculator is allowed.

    PART A
    Q1(a) What is the normative goal of Financial Management?
    (b)In your opinion, which is the best source of finance available to the firm for raising money
    from the public?
    (c) What do you mean by venture capital financing?
    (d) As a financial consultant, will you advise your client to have term deposit in a commercial
    bank, which pays 8% interest compounded semi-annually or 8% interest compounded annually?
    Why?
    (e) Why are cash flows estimated for distant years usually less reliable than for recent years?
    How can this factor be considered when evaluating the riskiness of a project?
    (f) Calculate EBIT. Interest Rs. 5,000; sales Rs. 50,000; Variable cost Rs. 25,000; Fixed cost
    Rs. 15,000.
    (g)What is financial leverage? How is the degree of financial leverage measured?
    (h) What is the concept of scrip dividend.
    (i) What technique is used for identifying relationship between working capital levels and
    other variables such as sales level?
    (j) What is meant by a reorder point? What factors affect the inventory reorder point?

    PART B
    Q2. Who do you mean by factoring? Explain the benefits of factoring.
    Q3. You are the finance manager of a firm and asked to organize all the financial decisions of
    the firm. Elucidate the ways in which you will do it.
    Q4. What are the advantages and disadvantages of debt financing over equity financing from
    the point of the company and investors?
    Q5. Analyse the different theories of capital structure with suitable example.
    Q6. Calculate the degree of operating leverage, degree of financial leverage, and the degree of
    combined leverage for the following firms and interpret the results:
    Particulars P Q R
    Output (Units) 3,00,000 75,000 5,00,000
    Fixed Cost (Rs.) 3,50,000 7,00,000 75,000
    Variable Cost per unit (Rs.) 1.00 7.5 0.1
    Interest Expenses (Rs.) 25,000 40,000 ---
    Selling Price per unit (Rs.) 3.00 25.00 0.50
    Q7. What is stock dividend? Discuss the advantages of stock dividend to the company.
    Q8. "Capital budgeting is long-term planning for making and financing proposed capital outlays",
    Explain. What are the limitation of capital budgeting?
    Q9. In the real world, would it be wise for a company to retain a dividend which holders were
    expecting, in order to invest in a positive NPV project?
    Q10. In what ways is the wealth maximisation objective superior to the profit maximisation
    objective? Explain.
    Q11. Write a note on following:
    i) Book building i) Different types of debentures
    iii) Sweat equity shares iv) Derivatives

    -- End of Question Paper --

    Page 1 of 1

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