GANGA GLOBAL INSTITUTE OF MANAGEMENT STUDIES
Internal Examination-(NOVEMBER) 2024
Programme: MBA
Semester:2nd
Subject Name: Financial Management Subject Code: 317215
Time: 02Hours Full Marks: 30
Instruction:
The marks are indicated in the right-hand side
Attempt all sections
SECTION-A
Answer all the following Questions: (MCQ) 10*01= 10 Marks
1. Financial Management is study –
(i) of process of procuring and judicious use of financial resources.
(ii) Undertaken to maximize the value of firm/owners
Select the correct answer from the options given below:
A) (i) only
B) (ii) only
C) Both ( i) and (ii)
D) Neither (i) nor (ii)
2. Financial Management is broadly concerned with __________
A) Raising of funds
B) Creating value to the assets of the business enterprise
C) Efficient allocation of funds
D) All of the above
3. The concept of financial management is
A) Profit maximization
B) All features of obtaining and using financial resources for
company
operation
A) Organization of funds
B) Effective Management of every company
4. What is financial leverage?
a) Use of debt financing to increase equity returns
b) Use of equity financing to decrease debt returns
c) Use of assets to increase sales
Use of sales to increase assets
5. Which of the following is an example of operating leverage?
a) Increase in debt financing
b) Increase in equity financing
c) Increase in fixed costs
d) Increase in variable costs
pg. 1
Does the issue of bonus shares increase the wealth of
6 shareholders?
A) True B) False
7. Define the term dividend?
8. What is dividend yield?
9. What do you understand by the term “ploughing back of profits”?
10. Explain the following: Interim dividend, final dividend & special
dividend?
SECTION-B
4x2.5= 10 Marks
Answer any four from the following questions:
1. Define capital structure?
2. Is buyback of shares beneficial for the company, if yes then how?
3. What are the objectives of financial management?
4. Explain Gordon’s dividend model?
5. Discuss the different forms of dividend.
6. What are the factors affecting dividend policy?
SECTION-C
2 x 5= 10 Marks
Answer any Two from the following questions:
1. Discuss the function of financial Management.
2. What are the implication of operating, financial and combined
leverage over risk?
3. Discuss in detail the different forms of dividend?
2
3
