FINANCIAL MANAGEMENT

PART A

Unit 1

SUB: / BA 9222

1. What is finance? 2. Define financial management? 3. What is scope of financial management? 4. What is objective of financial management? 5. What is function of financial management? 6. What is modern & traditional view on financial management? 7. What is the emerging role of the financial management? 8. What is time value of money? 9. What do you mean by portfolio? 10. What is the concept of risk and return of portfolio? 11. What is systematic risk & unsystematic risk? 12. What are the types of return? 13. What do you mean investment decisions? 14. What is the formula of valuation of bond? 15. What is call option and put option?

PART B
1. 2. 3. 4. What are the objective and functions of financial management? List out and explain the method of measuring the changes in the value of money? Calculate NPV and IRR? Discuss fully the organization of the finance functions in a business?

UNIT 2 PART A
1. What is capital budgeting? 2. What is capital budgeting management? 3. What are the features of capital budgeting? 4. What is the importance of capital budgeting? 5. What are the principles and techniques of capital budgeting? 6. Define IRR? 7. List the phases of capital budgeting? 8. What are the various types of projects? 9. Explain the concept of capital rationing? 10. Define cost of capital? 11. What is the significant of cost of capital? 12. What is the cost of retained earning? 13. What risk free rate? 14. What is meant by cash inflow and cash outflow?

UNIT -2 PART B
1) State the different kinds of capital budgeting proposal. How would you rank them for the Purpose of their selection? 2) What are the basic financial decisions? How do they involve risk- return trade off? 3) What is equity? What is its yield to maturity? 4) What is DCF of capital budgeting techniques? 5) Calculate 1. Payback period method 2. NPV 3. IRR 4. Profitability Index 5. How will you calculate cost of capital? Explain with an illusteration?

UNIT 3

PART A

1. Explain the concept of leverage? 2. What are the types of leverages? 3. Define financial leverage? 4. Define financial structure? 5. What are the two bases which capital structure is determined? And what is optimum capital structure? 6. What is a share split? 7. What is indifference point in EBIT Eps analysis? 8. What is dividend? 9. What are various forms of dividend? 10. What are the different forms of dividend policy? 11. What is NOI (NET OPERATING INCOME) approach? 12. What is MM approach? 13. Compare a bonus issue and share split? 14. What is commercial paper? And its features? 15. What are Payout Ration and its factors?

16.What is trading on Equity? PART B

1. 2. 3. 4. 5. 6. 7. Explain the consideration involved in evolving a balanced capital structure of a corporation? Explain in detail the impact of financial leverage on earning per share? What factors determine the dividend decisions? What factors determine the dividend policy of a particular business enterprise? Define dividend? Explain the various theories of dividend with examples? Explain modigliani and miller approach on cost of capital? Calculate A. Operating leverage and financial leverage? B. Walters formula on dividend payout ratio at 0% ,20%,40%,80%,100%

UNIT 4 PART A
1. Define the term working capital? What are the various forms? 2. What is the concept and need of working capital? 3. What is fluctuating working capital? 4. What are the methods used to forecasting working capital requirement? 5. What are the elements of working capital? 6. What is permanent or fixed working capital? 7. Explain zero working capital? 8. Define Receivables? 9. Define operating cycle? 10. What are the functions of Factor? 11. What are the advantages of inventory control? 12. Explain the term Float? 13. Explain the nature of cash? 14. Explain the concept of re order point? 15. Explain stock out cost? 16. What is lead time? 17. What is trade credit? And letter of credit? 18. What is bank finance? 19.What is commercial paper?

PART B
1. Write the format of working capital? 2. Explain the various determinations of working capital in a concern? 3. What is the concept of working capital cycle? What is cash conversion cycle? Why are these concepts important in working capital management? 4. What are the various types of cost and risk associated with receivables? 5. What are the various techniques of inventory management? 6. What is float in cash management? Explain different kind of floats in cash management? 7. Explain the objectives of credit policy? What is an optimum credit policy? 8. Sum calculates the working capital?

UNIT 5
1. 2. 3. 4. 5. 6.

PART A

What is authorized share capital and paid up share capital? Who are associated with a company issue of capital? What is authorized share capital and paid up capital? What is meant by debenture? What is rule 72? What is leasing? What are the various types of financing?

7. Name the three parties in leveraged transactions? 8. Distinguish between term loans and bought out loan deal? 9. Define Hire purchase?

PART B
1. 2. 3. 4. Explain primary Market? And Explain secondary Market? And what is the difference? What are the sources of raising long term fund? Distinguish between share holder and debenture holder? What are the right and position of equity share holders?

5. What is debenture? Explain the features? What are the pros and cons from the view of company and investors? 6. Explain lease and Hire purchase?