MBA MAGADH UNIVERSITY QUESTION (2015-2017) Financial Management

MBA MAGADH UNIVERSITY QUESTION (2015-2017) Financial Management 

                                                                      2015-2017
                                                                    Full marks: 80
                                                                    Time: 4 hours
                                               Candidates are required to give their answers in
                                                   their own words as far as practicable.
                                                      The questions are of equal value.
                                                        Answer any five questions.

(1). " Investment, Financing and Dividend decisions are all inter- related." Explain.

(2). How does a Cash Budget help in management of Working Capital ? Explain the objectives of Cash Budgeting.

(3). The Capital structure of Shobha Ltd. is an under:
                                       
                                                                                                   Rs.
      2, 000, 6 % of Rs 100 Debenture
        (First issue)                                                                  2,00,000
                                                               
      1,000, 7 % of Rs 100 Debenture                                   
        ( Second issue)                                                            1,00,000

      2,000, 8 % cum Preference Shares
       of  Rs 100 each                                                             2,00,000

      4, 000 Equity shares of Rs 100 each                             4,00,000
       Retained Earnings                                                        1,00,000

 The earning per share of the company in past many years has been Rs 15. The shares of the company are sold in the market at the book value. The company tax rate is 50 % , shareholder tax rate is 25 % . Find out the Weighted average cost of Capital.


(4). What is meant by Capital Structure? What are the basic assumptions of Capital Structure theories? Explain and illustrate Net income Approach.

(5). What are the Various types of Industrial securities? Describe its merits and demerits.

(6). Explain the meaning of working Capital  management. Describe the various dimensions of Working Capital.

(7). Mention the various steps involved in receivable management.

(8). Describe the short-term sources of working Capital Financing.

(9). Write  notes on the following:
       (a). Factoring
       (b). Commercial papers

(10). Explain the relevance concept of Dividend Policy. Describe the Walter's Formula regarding dividend policy.

(11). Critically examine the essentials of a sound dividend policy.

(12). Write short notes on any two of the following:
         (a). Time- Value Money
         (b). Retained Earnings
         (c). Capital Rationing
         (d). Balance Sheet