Ranchi University 2008 M.B.A Financial Management [CP-204] - Question Paper

Full Marks: 70 Time three hours

Candidates are needed to provide their answers in their own word as far as practicable

The ques. are of equal value

ans any 5 ques.

1. (a) Compare shareholders wealth maximization with corporate value maximization.

(b) Critically examine the major tools that are used to measure the shareholders' Wealth.

2. (a) A limited company borrows from a commercial bank Rs 10 lakh at 12 % rate of interest to be paid in equal annual end of year installments. What would be the size of installments? presume the repayment period is five Years.

(b) Why has money got a time value? The time value of money various for various people?

3. "The multiplicity of funding sources has made the financing decision of the manager more difficult and more risky." Elucidate the statement.

4. How will you raise funds for long-term requirement of corporate sector? explain the long-term financial strategy in this regard.

5. discuss the consideration involved in evolving a balanced capital structure of a corporation.
6. The subsequent figures relate to a company, Manufacture a varied range of products:

Period -1 Sales Rs 15 lakh profit Rs 40.000
Period -2 Sales Rs 19 lakh Profit Rs 1,15,000
Calculate-
(a) The P/V ratio;
(b) The profit when sales are Rs 12 lakh;
(c) The sales needed to earn a profit of Rs lakh;
(d) How may the p/v ratio be improved a part from increasing selling prices.

7. What do you mean by capital budgeting? Contrast the IRR and NPV methods of capital budgeting.

8. discuss the structure of operating and financial leverage analysis for a financial executive in corporate profit and financial structure planning.

9. (a) X company earns Rs five per share is capitalized at a rate of 10% and has a rate of return on investment of 18%. According to Walters's model, what should be the price of share at 25%dividend payout ratio? Is this the optimum payout ratio?

(b) discuss the MM's proposition for dividend evaluation. What is its rationale?

10. Distinguish ranging from the following:
(a) Gross working capital and net working capital
(b) Permanent and temporary working capital
(c) Production cycle and operating cycle.

Earning:   Approval pending.