DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2018.
Fourth Semester
MANAGEMENT OF FUNDS
(2012-13 Academic Year and 2013 Calendar Year only)
(English Medium Only)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. How are funds related to other disciplines?
2. What are the requirements of a good method of capital
budgeting decision making?
3. What are the major global sources of financing?
4. What is the relevance of debt-equity ratio to business
organizations?
5. What are the distinguishing features of venture capital?
6. What are the salient features of GDRs?
Sub. Code
421
DE-4319
WS
2
7. What are the advantages and disadvantages of IRR
method?
8. Project cost is Rs. 30,000 and the cash inflows are
Rs. 10,000, the life of the project is 5 years. Calculate the
pay-back period.
SECTION B — x 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Explain any three sources of Long-term finance and their
merits.
10. Discuss the methods to create safeguards and reduce the
risk in decision making while selecting project under
conditions of uncertainty.
11. Explain the different concepts of cost of capital.
12. Examine the applications of operating, financial and
composite leverages to capital structure decisions.
13. Describe the steps involved while deciding to buy or lease
from Lessee's point of view.
14. Describe the internal methods of foreign currency risk
management.

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