M.B.A. M.B.A. (Finance) DEGREE EXAMINATION, APRIL/MAY 2018.
Second Semester
FINANCIAL MANAGEMENT
(CBCS Old Syllabus)
2 90122 A
Time 3 Hours Max. Marks 60
SECTION — A
Answer all FIVE questions. 2 10 Marks)
1. Profit Maximization.
2. D.C.F.
3. Working capital.
4. Liquidity.
5. Dividend
SECTION — B
Answer all FIVE questions. 8 40 Marks)
6. Explain the objectives of financial management.
Or
What are the differences between profit V3 wealth management?
7. What are the cash flow statements? Explain.
Or
What is fund flow statement? Prepare a model of it.
8. Explain the non discounted cashflow methods in brief.
Or
Explain the concept of NPV in detail.

9. Discuss in detail the concept of operation cycle.
Or
Discuss Liquidity vs profitability.
10. Discuss various capital structure theories in brief.
Or
Explain the relevance and irrelevance of dividend policy.
SECTION — C (10 Marks)
11. Case Study (Compulsory)
From the following information of VSGR Company ltd., estimate the working
capital needed to finance a level of activity of 1,10,000 units of production after
adding a 10% safety contingency.
Particulars Cost Per Unit

Raw Materials 78
Direct Labour 29
Overheads (Excluding depreciation) 58
Total Cost 165
Profit 24
Selling Price 189
Additional Information:
Average raw materials in stock: one month
Average materials-in-process completion stage): Half a month
Average finished goods in stock: one month
Credit allowed by supplier: one month
Credit allowed to customer: two months
Time lag in payment of wages: one and half weeks
Overheads expenses: one month.
One fourth of the sales is on cash basis. Cash balances is expected to be
Rs. 2,15,000. You may assume that production is carried on evenly
throughout the year and wages and overhead expenses accrue similarly.
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