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 | June, 2016 | |
| City, State | new delhi, |
Question Paper
1. Any successful project plan must contain nine key elements. List these items and briefly describe the composition of each.
2. What do you understand by Financial Engineering? Why is it considered necessary Describe the important steps taken in this regard in the field of fixed income securities.
3. What do you understand by Financial Reconstruction? How does it differ from re -organisation of capital What steps are taken for the formulation of a Reconstruction Plan Explain.
4. What do you understand by Assets Securitisation? Explain the procedure adopted for this purpose. Discuss the advantages derived by various parties to Securitisation.
5. Distinguish between:
Horizontal Merger and Vertical Merger
Foreign Direct Investment and Portfolio Investment
Business Risk and Financial Risk
Private Placement of Shares and Public Issue of Shares
6. Explain and distinguish between Internal Rate of Return Method and Net Present Value Method of evaluating investment proposals. Which one would you prefer and why? Why is profitability Index prepared? Explain.
What is Social Cost-Benefit Analysis Why is it considered necessary for economic appraisal of a project? Explain with examples.
What do you understand by Global Depository Receipts? How are they different from Euro Convertible Bonds Explain.
8. The Modern Chemicals Ltd. requires Rs 25,00,000 for a new plant. This plant is expected to yield earnings before interest and taxes of Rs 5,00,000. While deciding about the financial plan, the company considers the objective of maximising earnings per share. It has three alternatives to finance the project by raising debt of Rs 2,50,000 or Rs 10,00,000 or Rs 15,00,000 and the balance, in each case/ by issuing equity shares. The company's share is currently selling at 150 but is expected to decline to Rs 125 in case the funds are borrowed in excess of Rs 10,00,000. Funds can be borrowed at the rate of 10% upto Rs 2,50,000/ at 15% over Rs 2,50,000 and up to Rs 10,00,000 and at 20% over Rs 10,00,000. The tax rate applicable to the company is 50%. Which form of financing should the company choose?
2. What do you understand by Financial Engineering? Why is it considered necessary Describe the important steps taken in this regard in the field of fixed income securities.
3. What do you understand by Financial Reconstruction? How does it differ from re -organisation of capital What steps are taken for the formulation of a Reconstruction Plan Explain.
4. What do you understand by Assets Securitisation? Explain the procedure adopted for this purpose. Discuss the advantages derived by various parties to Securitisation.
5. Distinguish between:
Horizontal Merger and Vertical Merger
Foreign Direct Investment and Portfolio Investment
Business Risk and Financial Risk
Private Placement of Shares and Public Issue of Shares
6. Explain and distinguish between Internal Rate of Return Method and Net Present Value Method of evaluating investment proposals. Which one would you prefer and why? Why is profitability Index prepared? Explain.
What is Social Cost-Benefit Analysis Why is it considered necessary for economic appraisal of a project? Explain with examples.
What do you understand by Global Depository Receipts? How are they different from Euro Convertible Bonds Explain.
8. The Modern Chemicals Ltd. requires Rs 25,00,000 for a new plant. This plant is expected to yield earnings before interest and taxes of Rs 5,00,000. While deciding about the financial plan, the company considers the objective of maximising earnings per share. It has three alternatives to finance the project by raising debt of Rs 2,50,000 or Rs 10,00,000 or Rs 15,00,000 and the balance, in each case/ by issuing equity shares. The company's share is currently selling at 150 but is expected to decline to Rs 125 in case the funds are borrowed in excess of Rs 10,00,000. Funds can be borrowed at the rate of 10% upto Rs 2,50,000/ at 15% over Rs 2,50,000 and up to Rs 10,00,000 and at 20% over Rs 10,00,000. The tax rate applicable to the company is 50%. Which form of financing should the company choose?
Other Question Papers
Departments
- Centre for Corporate Education, Training & Consultancy (CCETC)
- Centre for Corporate Education, Training & Consultancy (CCETC)
- National Centre for Disability Studies (NCDS)
- School of Agriculture (SOA)
- School of Computer and Information Sciences (SOCIS)
- School of Continuing Education (SOCE)
- School of Education (SOE)
- School of Engineering & Technology (SOET)
- School of Extension and Development Studies (SOEDS)
- School of Foreign Languages (SOFL)
- School of Gender Development Studies(SOGDS)
- School of Health Science (SOHS)
- School of Humanities (SOH)
- School of Interdisciplinary and Trans-Disciplinary Studies (SOITDS)
- School of Journalism and New Media Studies (SOJNMS)
- School of Law (SOL)
- School of Management Studies (SOMS)
- School of Performing Arts and Visual Arts (SOPVA)
- School of Performing Arts and Visual Arts(SOPVA)
- School of Sciences (SOS)
- School of Social Sciences (SOSS)
- School of Social Work (SOSW)
- School of Tourism & Hospitality Service Sectoral SOMS (SOTHSM)
- School of Tourism &Hospitality Service Sectoral SOMS (SOTHSSM)
- School of Translation Studies and Training (SOTST)
- School of Vocational Education and Training (SOVET)
- Staff Training & Research in Distance Education (STRIDE)
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