LL.M (Semester III) (CBCS) Examination Nov/Dec-2018
CORPORATE FINANCE
Time: 2½ Hours Max. Marks: 70
Instructions: Answer any five questions.
Question No. 1 is Compulsory.
Marks indicated right side of each question.
Q.1 Multiple choice questions: 14
Which of the following is not one of the three fundamental methods of firm
valuation?
Discounted cash flow
Income of earnings where the firm is valued on some multiple of
accounting income or earning
Balance Sheet where the firm is valued in terms of its assets
Market Share
What is the value of the firm usually based on?
The value of debt and equity
The value of equity
The value of debt
The value of assets plus liabilities
Which of the following defines the market to book value?
The ratio of stock market valuation divided by the value of its NAV
The ratio of NAV value divided by stock market valuation
The market value of tangible assets divided by the book value of tangible
assets
The market value of intangible assets divide by the book value of
intangible assets
Share holders wealth increases with the increase in
EPS
Market value of the firm
Dividend market value of the firm
Market price of the equity share
Promotion of welfare of human by corporate is called as
Social service Philosophy
NGO work Corporate philanthropy
Leasing of machinery can be categorized as Z
Fixed asset Investment decision
Financing decision Capital budgeting decision
A mutually exclusive decision means
Accepting of an alternative, leads to rejecting of other
Accepting of both alternatives
Rejecting of both alternatives
Both c d
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SLR-HK-10
Which of the following has Net Profit as basis for calculation
Net present value Average rate return
Internal rate of return Payback period
Internal rate of return is
Rate at which discounted cash flow is more than discounted cash outflow
Rate at which discounted cash inflow is less than discounted cash outflow
Rate at which discounted cash inflow is equal to the discounted cash
outflow
Either a or b
10) Corporate wealth maximization is the value maximization for
Equally share holders Stakeholders
Employees Debt capital owners
11) Book value of assets includes
Fixed assets, current asset
Fixed assets, current asset, intangible asset
Fixed assets, current asset, fictitious asset

12) Listed companies can be value at
Book Value Market Value
Salvage value Liquidation value
13) Unlisted company can be valued at
Net asset Method Market value method
Both a b None of the above
14) Which of the following valuation methods is based on "Going concern
concept".
Market value method Both value method
Liquidation method Salvage value method
Q.2 Answer any four of following 16
Scope of Corporate Finance
Deposit and Acceptance
Control on Payment of Dividends
Preference in Payment
Control over Corporate spending
Public financing Institutions
Q.3 Answer any two of the following 12
Inspection of Accounts
Right to Nominate Directors
Pay back of Shares
Information Disclosure in Prospectus
Q.4 Answer any one of the following 14
What are the objectives of Corporate Finance?
Qualified Members Right on Investment.
Q.5 Answer the following question 14
Discuss the Institutional Investment like LIC, UTI and Banking Sector.