DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, MAY 2018.
FINANCIAL MANAGEMENT AND CONTROL
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Explain the objectives of financial management.
2. What are the significance of convertible issues and right
issues?
3. Explain the different sources of working capital.
4. Describe the traditional approach to capital structure.
5. Discuss the different methods of calculating the cost of
equity capital.
6. What are the objectives of maintaining receivables?
7. Explain the various techniques of Inventory control.
8. Explain the different types of leverage.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Define financial management. How the financial decision
making involves risk-return trade off?
10. What factors would you take into account in planning the
working capital requirements of a firm?
Sub. Code
21
DE-3795
2
wk11
11. Explain the net income approach to capital structure.
12. Explain the factors determining cost of capital.
13. Explain the role of credit standards in the credit policy of
a firm.
14. The following data are available in respect of material X
for the year ended 31st March 2006
Opening stock Rs. 90,000
Purchases during the year Rs. 2,70,000
Closing stock Rs. 1,10,000
Calculate
Inventory turnover ratio and
The number of days for which the average inventory
is held.
15. Explain the assumptions and implications of Gordon's
dividend model.