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    Finance QP 2017

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    Yeswanth raja
    This document outlines the questions that will be asked in an MBA exam on financial management. It includes two sections - Part A consists of 10 short answer questions on topics like intrinsic value, interest rate risk, capital structure, etc. Part B includes 5 long answer questions, 2 options given for each, involving calculations related to bond yields, IRR, leverage, working capital, and venture capital finance. Students must answer all questions in the exam lasting three hours and carrying a maximum of 100 marks.

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    Finance QP 2017

    Uploaded by

    Yeswanth raja
    25 views3 pages
    This document outlines the questions that will be asked in an MBA exam on financial management. It includes two sections - Part A consists of 10 short answer questions on topics like intrinsic value, interest rate risk, capital structure, etc. Part B includes 5 long answer questions, 2 options given for each, involving calculations related to bond yields, IRR, leverage, working capital, and venture capital finance. Students must answer all questions in the exam lasting three hours and carrying a maximum of 100 marks.

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    This document outlines the questions that will be asked in an MBA exam on financial management. It includes two sections - Part A consists of 10 short answer questions on topics like intrinsic value, interest rate risk, capital structure, etc. Part B includes 5 long answer questions, 2 options given for each, involving calculations related to bond yields, IRR, leverage, working capital, and venture capital finance. Students must answer all questions in the exam lasting three hours and carrying a maximum of 100 marks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views3 pages

    Finance QP 2017

    Uploaded by

    Yeswanth raja
    This document outlines the questions that will be asked in an MBA exam on financial management. It includes two sections - Part A consists of 10 short answer questions on topics like intrinsic value, interest rate risk, capital structure, etc. Part B includes 5 long answer questions, 2 options given for each, involving calculations related to bond yields, IRR, leverage, working capital, and venture capital finance. Students must answer all questions in the exam lasting three hours and carrying a maximum of 100 marks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Reg. No.

    Question Paper Code : BS2011

    M.B.A. DEGREE EXAMINATION, AUGUST/SEPTEMBER 2017.

    Second Semester

    DBA 1654 — FINANCIAL MANAGEMENT

    (Regulations 2007/2009)

    Time : Three hours Maximum : 100 marks


    Answer ALL questions.

    PART A — (10  2 = 20 marks)

    1. What is intrinsic value?


    2. What is interest rate risk?
    3. What is implicit cost of capital?
    4. What is capital rationing?
    5. What is financial structure?
    6. What is optimum capital structure?
    7. What is factoring?
    8. What is commercial paper?
    9. What is Initial Public Offer?
    10. What is operating lease?

    PART B — (5  16 = 80 marks)

    11. (a) “A rational human being has a time preference for money”. Give reasons.

    Or
    (b) You are evaluating the yield on a callable bond, with a 10-year maturity
    and a 9% coupon rate. The bonds can be called back at 110% of par in
    3 years. The bond is trading at Rs.950.
    (i) Estimate the yield to maturity.
    (ii) Estimate the yield to call.
    (iii) Which of the two would you use in analyzing the bond?
    12. (a) What are the differences between NPV and IRR?

    Or
    (b) Calculate internal rate of return from the following information:
    Particulars Amount (Rs.)

    Initial investment 60,000


    Life of the asset 4 years
    Estimated net annual cash flows:
    1st year 15,000
    2nd year 20,000
    3rd year 30,000
    4th year 20,000

    13. (a) What are the factors that affect dividend policy? Briefly discuss each of
    them.

    Or
    (b) The data relating to two companies are as given below:
    Particulars Company - A Company — B
    Capital (Rs.) 6,00,000 3,50,000
    Debentures (Rs.) 4,00,000 6,50,000
    Output per annum (Units) 60,000 15,000
    Selling price (per unit) 30 250
    Fixed cost (per annum) 7,00,000 14,00,000
    Variable cost (per unit) 10 75
    You are required to calculate operating, financial and combined leverages
    of the two companies.

    14. (a) What are the factors affecting working capital management decisions?

    Or
    (b) From the following information of Ruthvik Limited, you are required to
    calculate
    (i) Net Operating Cycle Period,
    (ii) No. of Operating Cycles in a Year.
    Rs.
    1 Raw material inventory consumed during the year 6,00,000
    2 Average stock of raw material 50,000
    3 Work-in-progress inventory 5,00,000
    4 Average work-in-progress inventory 30,000

    2 BS2011
    5 Finished goods inventory 8,00,000
    6 Average finished goods stock held 40,000
    7 Average collection period from debtors 45 days
    8 Average credit period availed 30 days
    9 No. of days in a year 360

    15. (a) Explain the recent developments in the Indian new issue market.

    Or
    (b) What is venture capital finance? Explain the modes of financing used by
    venture capitalists.

    ——————————

    3 BS2011

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