Anna University Chennai 2007 M.B.A BA1731 – CORPORATE FINANCE,EMBER/EMBER - Question Paper

K4527
M.B.A DEGREE EXAMINATION, NOVEMBER/DECEMBER 2007
BA1731 – CORPORATE FINANCE

Part –a
1. what are the various kinds of debentures.
2. What is commercial paper.
3. What is a sick unit.
4. What are the various methods of export financing.
5. Mention the mathematical model used in risk analyse in capital budgeting.
6. What are the components of capital budgeting.
7. what are the major solvency ratios.
8. Explain the various kinds of dividend policy.
9. Define corporate governance.
10. What are the reasons for corporate disaster.

Part –b
11. A) explain the various methods of working capital financing.
Or
b) equity method of financing is more suited in the current scenario – explain.

12. A) explain the procedure for rehabilitation of sick unit.
Or
b)explain the role of EXIM bank in financing of exports.

13. A)KC company is considering 2 mutually exclusive projects. The initial cost of the project is rs. 50,000 and has an expected life of four years under 3 possible state of economy their annual cashflows and associated probabilities are
NCF

ECONOMIC STATE PROBABILITY PROJECT A PROJECT B
Good .3 60000 50000
Normal .4 40000 40000
Bad .3 20000 40000

If the discount is 7% which project should the company accept.
Or
b) discuss the various methods of appraising investment proposals under risks and uncertainties.
14. a) explain the relationship ranging from investment decision and financing decision.
or
b) how agency cost play important role In financing

15). A)why companies provide importance to corporate governance in the current scenario.

Or
b).how companies help in social responsibility activities.

Earning:   Approval pending.