EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2017
First and Second Years
FINANCIAL MANAGEMENT
Time 3 Hours Maximum Marks: 70
SECTION-A × 5 15)
Answer Three of the following
Q1) Financial Intermediaries.
EPS.
Optimum Capital structure.
Gorden's model.
Safety stock.
Debentures.
SECTION-B × 15 45)
Answer Three of the following
Q2) What are the various financial goals of a firm?
Q3) Give an overview on financial markets.
Q4) Bringout the determinants of capital structure.
Q5) Discuss about the implications of break-even analysis in financial decisions.
Q6) Listout the factors influencing the requirements of working capital.
Q7) Briefly explain about inventory management techniques.
SECTION-C
Compulsory
Q8) Case study:
Following are the details of a project:
Initial outlay Rs. 80,000
Initial working capital Rs. 20,000
Cash flows before depreciation and taxes:
1st Year Rs. 35,000
2nd Year Rs. 35,000
3rd Year Rs. 30,000
4th Year Rs. 30,000
Salvage value Rs. 20,000
The project is depreciable on straight-line basis. If the required rate of return is
10% which is the project acceptable under the NPV and IRR criteria? Tax rate is
50%.