DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Fourth Semester
MULTINATIONAL FINANCIAL MANAGEMENT
(2013 14 Academic year and 2014 calendar year onwards)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
1. What is Multinational Company? Explain the concept of
multinational financial management.
2. Define FDI. Explain the planning process involved during
FDI.
3. Explain NPV.
4. Write a short note on IRR and its significance.
5. Discuss about international cash management.
6. Explain risk and uncertainty model.
7. Discuss the concepts and tool involved in inventory
management.
8. Mention the factors influencing capital structure.
SECTION B — 15 60 marks)
Answer any FOUR questions.
9. Explain the functions of multinational financial
management.
10. Briefly discuss the need and strategies followed by MNC's
for FDI.
Sub. Code
42
DE-3350
2
SER
11. Madura Ltd has the following figures for its expansion
involving a capital outlay of 6 Crs.
Year 1 2 3 4
Unit selling price 7 9 10 12
Additional sales quantity 0.9 0.95 1 1.05
Unit variable cost 4.5 6.5 7 8
Tax rate 30% 30% 35% 40%
Find the payback period and ARR of the expansion
project.
12. Write in detail about management of short term
investment portfolio.
13. Discuss credit policy variables elaborately.
14. What is a debt instrument? Explain its types briefly.
15. Evaluate the determinants of cost of capital in MNC's.