Veer Bahadur Singh Purvanchal University 2010-6th Sem B.B.A (ester) , , FINANCE-Financial ision-Making - Question Paper

B.B.A.(Sixth Semester) Examination, 2010
Specialization-Finance
Subject-Financial Decision-Making
Time:Three Hours
Maximum Marks: 70

Note: Attempt any 5 ques.. All ques. carry equal marks.

1) Identify the different kinds of decisions which are to be taken by a Finance Manager in the emerging business scenario.

2) What do you understand by capital structure? explain the major considerations in capital structure planning.

3) discuss the concept of 'Cost of Capital'. explain briefly the various approaches to the calculation of the cost of equity capital.

4) What is Capital Budgeting? Enumerate any 1 method for valuation of capital expenditure projects.

5) What is capital rationing? elaborate the factors leading to capital rationing?

6) Why is dividend policy important for a company? elaborate the essentials of Walter's dividend model?

7) describe working capital. discuss the different sources of financing working capital.

8) What is meant by Inventory Management? discuss the different techniques of inventory control.

9) What do you mean by the term 'Takeover'? elaborate the various kinds of takeover?

10)Write short notes on any 2 of the following:
(a) Risk-Return Trade off
(b) Operating and Fincancial Leverages
(c) Sources of Working Capital Finance
(d) Mergers and Acquisitions.

Earning:   Approval pending.