Jawaharlal Nehru Technological University Kakinada 2010-2nd Sem M.B.A Subject Code: MB921 [R09] Regular s FINANCIAL MANAGEMENT - Question Paper

Time: three Hours

Max Marks: 60


ans any 5 ques. All ques. carry EQUAL marks
ques. No : eight is Compulsory (Case Study)



1. How should the finance function of an enterprise be organized? What functions are
performed by financial manager?

2. discuss Capital Budgeting? What do you understand by Capital Budgeting process?

3. Critically examine M-M hypothesis on Capital Structure?

4. define the nature and significance of Working Capital Cycle?

5. discuss the different factors which influence the dividend decisions of a firm?

6. What is meant by financial leverage? How does it magnify the revenue available for
equity share holders?

7. What is the concept of Time Value of Money? discuss the different techniques employed
to adjust Time Value of Money?

8. The subsequent financial info is available about Birla Steel Ltd.,



Amount Per Unit

Cost of Raw Materials 40
Direct Labour Cost 15
Overhead Cost 30


Total 85
Profit 15
Selling Price 100
Raw material in stock is, on an average, 1 month, materials are in process for about two
weeks, finished goods in stock for 1 month suppliers allow 1 month credit facilities to the
company debtors are allowed 2 months, credit, lag in payment of overhead expenses is one
month. Cash in hand and at bank is expected to be 13,000/-.

Estimate working capital needs of Super Steel Ltd., for a level of activity of 50,000 units of
production.

Earning:   Approval pending.