Exam Details
| Subject | Capital Investment and Financing Decisions | |
| Paper | ||
| Exam / Course | Management Programme | |
| Department | School of Management Studies (SOMS) | |
| Organization | indira gandhi national open university | |
| Position | ||
| Exam Date | December, 2016 | |
| City, State | new delhi, |
Question Paper
1. What do you understand by Project Control? What are its objectives? Explain the three basic types of control mechanisms that are employed in an organisation.
Define the concept of Financial Restructuring and explain the main areas covered under it.
Distinguish between mergers and take-overs and describe different types of mergers.
3. What do you understand by the term Corporate Governance? How can good corporate governance help in better performance of the company? How is the corporate governance report useful to investors
4. What is meant by Venture Capital? Explain its distinguishing features. How does it differ from development finance provided by banks and financial institutions? Explain.
5. Distinguish between
Syndicated loans and soft loans.
Factoring and bills discounting.
Dividend Payout and Dividend Yield.
Fixed Rate of Interest and Floating Rate of Interest.
6. Why do the companies prefer stable dividend policy? Explain the three forms in which stability may be maintained while distributing dividends.
Distinguish between Zero Coupon Bond and Convertible Bond. For what purposes are they issued? Explain.
7. Write explanatory notes on
Retained Earnings are not cost free.
Euro Currency Market.
Scenario Analysis.
Commercial Paper.
8. A Co. has the following capital structure as on 31st March, 2015.
10% Debentures RS 3,00,000
Preference shares RS 2,00,000
Equity shares (5,000 shares of RS 100 each) RS 5,00,000
Total RS 10,00,000
The equity shares of the company are quoted at RS 102 and the company is expected to declare a dividend of RS 9 per share for the year 2014-15.
Assuming the tax rate applicable to the company at calculate the weighted average cost of capital. State your assumptions, if any.
Assuming in the exercise that the company can raise additional term loan at 12% for RS 5,00,000 to finance an expansion, calculate the revised weighted cost of capital. The company's assessment is that it will be in a position to increase the dividend from RS 9 per share to RS 10 per share, but the business risk associated with new financing may bring down the market price from RS 102 to RS 96 per shares.
Define the concept of Financial Restructuring and explain the main areas covered under it.
Distinguish between mergers and take-overs and describe different types of mergers.
3. What do you understand by the term Corporate Governance? How can good corporate governance help in better performance of the company? How is the corporate governance report useful to investors
4. What is meant by Venture Capital? Explain its distinguishing features. How does it differ from development finance provided by banks and financial institutions? Explain.
5. Distinguish between
Syndicated loans and soft loans.
Factoring and bills discounting.
Dividend Payout and Dividend Yield.
Fixed Rate of Interest and Floating Rate of Interest.
6. Why do the companies prefer stable dividend policy? Explain the three forms in which stability may be maintained while distributing dividends.
Distinguish between Zero Coupon Bond and Convertible Bond. For what purposes are they issued? Explain.
7. Write explanatory notes on
Retained Earnings are not cost free.
Euro Currency Market.
Scenario Analysis.
Commercial Paper.
8. A Co. has the following capital structure as on 31st March, 2015.
10% Debentures RS 3,00,000
Preference shares RS 2,00,000
Equity shares (5,000 shares of RS 100 each) RS 5,00,000
Total RS 10,00,000
The equity shares of the company are quoted at RS 102 and the company is expected to declare a dividend of RS 9 per share for the year 2014-15.
Assuming the tax rate applicable to the company at calculate the weighted average cost of capital. State your assumptions, if any.
Assuming in the exercise that the company can raise additional term loan at 12% for RS 5,00,000 to finance an expansion, calculate the revised weighted cost of capital. The company's assessment is that it will be in a position to increase the dividend from RS 9 per share to RS 10 per share, but the business risk associated with new financing may bring down the market price from RS 102 to RS 96 per shares.
Other Question Papers
Departments
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- Centre for Corporate Education, Training & Consultancy (CCETC)
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Subjects
- Accounting and Finance for Managers
- Advanced Strategic Management
- Bank Financial Management
- Capital Investment and Financing Decisions
- Consumer Behaviour
- Economic and Social Environment
- Electronic Banking and IT in Banks
- Employment Relations
- Ethics And Corporate Governance In Banks
- Human Resource Development
- Human Resource Planning
- Information Systems for Managers
- International Banking Management
- International Business
- International Financial Management
- International Human Resource Management
- International Marketing
- Labour Laws
- Logistics and Supply Chain Management
- Maintenance Management
- Management Control Systems
- Management Functions and Behaviour
- Management of Financial Services
- Management of Human Resources
- Management of Information Systems
- Management of Machines and Materials
- Management of Marketing Communication and Advertising
- Management of New and Small Enterprises
- Management of Public Enterprises
- Management of R&D and Innovation
- Managerial Economics
- Managing Change in Organisations
- Marketing for Managers
- Marketing of Financial Services
- Marketing of Services
- Marketing Research
- Materials Management
- Operations Research
- Organisational Dynamics
- Organizational Design, Development and Change
- Product Management
- Production/Operations Management
- Project Management
- Quantitative Analysis for Managerial Applications
- Research Methodology for Management Decisions
- Retail Management
- Risk Management In Banks
- Rural Marketing
- Sales Management
- Security Analysis and Portfolio Management
- Social Processes and Behavioural Issues
- Strategic Management
- Technology Management
- Total Quality Management
- Wage and Salary Administration
- Working Capital Management