Alagappa University 2007 Post Graduate Diploma Bank management FINANCIAL MANAGEMENT - exam paper

(2005 onwards)
Time : 3 hours Maximum : 100 marks

PART A — (5 * eight = 40 marks)
ans any 5 ques. in about 200 words every.

1. What is financial management? elaborate its functions?
2. What is debenture? elaborate its types?
3. Write a short note on ‘working capital financing by commercial banks’.
4. Explain net income theory of capital structure with suitable illustration.
5. What is weighted avg. cost of capital?
6. What is cash budget? provide the procedure to prepare a cash budget.
7. What are the objectives of inventory management?
8. What is credit policy? discuss its importance in receivables management.

PART B — (4 * 15 = 60 marks)
ans any 4 ques. in about 400 words every.

9. What are the long term sources of finance? discuss them.
10. What are the determinants of working capital? discuss them.
11. What is optimum capital structure? discuss its significance in capital structure planning of a company.
12. How will you calculate cost of debt, equity and preference share capital? provide suitable illustrations.
13. explain the different inventory management techniques.
14. What are the different kinds of leasing? discuss them.
15. What are the different dividend theories? discuss them.

Earning:   Approval pending.