Maharashi Dayanand University (MDU) 2007 M.B.A Business Administration FINANCIAL MANAGEMENT - Question Paper

1. In what respect is the objective of wealth maximization superior to the profit maximization objective?
2. “Financial decision making is the hallmark of financial management, “Examine the statement in the light of
the important financial decisions in a firm.



3. describe cost of capital. How is the overall cost of capital computed?
4.What is capital budgeting? discuss the discounted cash flow techniques of capital budgeting


5. discuss the assumptions and implications of NI approach and NOI approach. Illustrate your ans with
hypothetical examples.
6.What is stable dividend policy? Why do firms follow such a dividend policy?



7. “Duration of operating cycle is the major determinant of working capital requirements of working capital
requirements of a company” explain.
8.Explain the techniques that can be used to accelerate the firm’s collection.

Earning:   Approval pending.