MBA MAGADH UNIVERSITY QUESTION (2017-2019) (Second semester) Financial Management

MBA MAGADH UNIVERSITY QUESTION (2017-2019) (Second semester) Financial Management 

                                                                            2017-2019
                                                                         Time: 4 hours
                                                                        Full Marks: 80
                                          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. Define financial management. Discuss its nature and objectives.

2. What do you mean by financial forecasting? Describe its importance.

3. What is capital budgeting? Explain the various methods of capital budgeting.

4. Discuss the relevance of time value of money in financial decision making.

5. Explain the term capital structure. Describe the theories of capital structure.

6. Describe the different types of cost of capital in detail.

7. Explain 'M.M Hypothesis' in detail.

8. Write short notes on any two of the following:
     (a) Capital Rationing
     (b) Industrial Securities
     (c) Working capital management
     (d) Dividend Policy

9. A project costs Rs. 5,00,000 and yields annually a profit of Rs. 80,000 after depreciation @ 12% p.a. but before tax of 50% . Calculate the payback period.

10. Arora Ltd.issued at par 10,000; 10% preference shares of Rs. 100 each. These shares are redeemable after 10 years at a premium of Rs. 5 per share. The Cost of issue is Rs. 2 per share. Find out the preference capital. Assume 50% tax rate.