M.B.A./M.B.A. (Finance) DEGREE EXAMINATION, APRIL/MAY 2018.
Second Semester
FINANCIAL MANAGEMENT
2 90122 AA
Time 3 Hours Max. Marks 70
SECTION — A
Answer all FIVE questions. 2 10 Marks)
1. Profit maximization.
2. Cash flow statement.
3. A.R.R.
4. Working capital management.
5. Dividend Vs. market price.
SECTION — B
Answer ALL questions. 10 50 Marks)
6. Define financial management. Explain its significance.
Or
Describe the functions and scope of financial management.
7. What is meant by financial analysis? State its objectives.
Or
Bring out various types of ratios.
8. Explain the factors influencing investment decisions.
Or
Discuss about DCF techniques in detail.

9. What are the various types of working capital?
Or
Enumerate the nature of operating cycle.
10. What is capital structure? State its features.
Or
Discuss about M-M hypothesis on dividend decisions.
SECTION — C
Compulsory. (10 Marks)
11. Case Study
A company is planning to purchase a machine for 1,20,000 the expected cash
inflows form this machine in the next three years are
Year Cash inflows
2009 50,000
2010 40,000
2011 60,000
Calculate Net Present Value of the proposal at the required rate of return of 10%
and 12%. If the cost of capital of the company is advise using IRR method
whether the machine should be purchased.
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