Mba Financial Management

4 SECTION - D ( Compulsory ) 10. ABC company has the following selected assets and liabilities : Assets and liabilities. Cash Retained earnings Equity share capital Debtors Inventory Debebntures Provision for taxation Expenses outstanding Land and building Goodwill Furniture Creditors You are required to determine : (i) (ii) Gross working capital. Net working capital. Rs. 45,000. 1,60,000. 1,50,000. 60,000. 1,11,000. 1,00,000. 57,000. 21,000. 3,00,000. 50,000. 25,000. 39,000. ( 1 × 15 = 15)

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2 3 7 7 M.B.A. ( Human Resource Management ) DEGREE EXAMINATION, 2010

( FIRST YEAR ) ( PAPER - V )

150 /120 / 140 . FINANCIAL MANAGEMENT [ Common with M.B.A. ( Marketing Management ) & M.B.A. ( Financial Management )] May ] [ Time : 3 Hours Maximum : 75 Marks SECTION - A ( 5 × 3 = 15)

Answer any FIVE questions. All questions carry equal marks. 1. (a) Explain the concept of ‘hard core’ working capital. (b) W h a t a r e t h e g o a l s management ? of financial

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2 (c) Why have companies recently taken to lease financing ? (d) Explain the different approaches of dividend theory. (e) Explain the limitations of weighted average cost of capital. (f) What is EBIT - EPS analysis ? (g) Define flexible capital structure. (h) What is a leveraged lease ? SECTION - B ( 3 × 10 = 30)

3 6. X- company earns Rs. 5 per share, is capitalised at a rate of 10% and has a rate of return on investment of 18%. According to Walter’s formulae, what should be the price per share at 25% dividend payout ratio ? Is this the optimum payout ratio according to Walter ? SECTION - C ( 1 ×15 = 15)

Answer any ONE question. 7. What are the various methods of assessing working capital requirements ? 8. What is the major difference between an operating lease and a financial lease ? 9. The current market price of a share is Rs.125. A company anticipates earnings of Rs.2,50,000 to be distributed among 15,000 share-holders. The share-holder’s tax...