Tamil Nadu Open University (TNOU) 2009 M.Com Commerce Financial management - Question Paper

PG-232    MCO-21

M.Com. DEGREE EXAMINATION -JUNE 2009.

(AY 2004-05 batch onwards)

Second Year

Commerce

FINANCIAL MANAGEMENT

Time : 3 hours    Maximum marks : 75

PART A (3 x 5 = 15 marks)

Answer any THREE questions.

All questions carry equal marks.

Answer to each questions should not exceed 1 page.

1.    What are the objectives of Financial Management?

2.    What is Capital Expenditure Budget? What are its objectives?

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3.    Define Leverage. Explain its types.

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4.    State the importance of proper planning and control of Working Capital.

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5.    What factors determine the dividend policy of a Company?

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PART B (4 x 15 = 60 marks)

Answer any FOUR questions.

All questions carry equal marks.

Answer to each questions should not exceed 4 pages.

6.    Discuss the scope and Environment of Financial Management.

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7.    What is Net present value method? State its merits and demerits in evaluating capital expenditure.

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8.    What is meant by Cost of Capital? Explain its components.

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9.    Discuss the determinants of Working Capital requirement of a Company.

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10.    Explain the concept of leasing. State its advantages and Limitations.

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11.    A Company has to select one of the following two projects :

Project A Project B Cost Rs. 11,000 0 .0 s0 o 1 Cash in flows : Year 1 6,000 1,000 Year 2 2,000 1,000 Year 3 1,000 2,000 Year 4 5,000 10,000

Using the Internal Rate of Return method suggest which project is preferable.

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12. A Company offers for Public subscription equity shares of Rs. 10 each at a premium of 10%. The Company pays 5% of the issue price as underwriting commission. The rate of dividend expected by the equity share holders is 20%.

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5    PG-232

Attachment: tamil-nadu-open-university--tnou--2009-m-com-commerce-50221-1.pdf

Earning:   Approval pending.