Course: Strategic Finance

Instructor: Dr. Mushtaq Hussain Khan

The University of Azad Jammu & Kashmir, Muzaffarabad
Terminal Exam
MBA (Semester 6)

Note:- Attempt All questions. Max. Marks: 75

Q.No:1. (15)
Enumerate the different risk premium elements and discuss their relative importance for an
investor. Justify your answer with suitable examples.

Q.No:2. (15)
How convincing or relevant are Pecking Order and Trade-off Theory of capital structure in
case of Pakistani listed firms?

Q.No:3. (15)
If you were asked to represent the Khan Bahadur family in the matter, what safeguards
would you ask to be built into any restructuring scheme proposed by the bank? Provide
answer in light of case study “Revival of sick units”.

Q.No:4. (15)
Evaluate working capital effectiveness of a company based on its operating and cash
conversion cycles, and compare the company's effectiveness with that of peer companies.

Q.No:5. (15)
Explain why a cash dividend and a share repurchase of the same amount are equivalent in
terms of the effect on shareholders' wealth, all else being equal?