Exam Details
| Subject | international financial management | |
| Paper | ||
| Exam / Course | m.b.a. in d - international management | |
| Department | ||
| Organization | acharya nagarjuna university-distance education | |
| Position | ||
| Exam Date | May, 2018 | |
| City, State | new delhi, new delhi |
Question Paper
Total No. of Questions 08] [Total No. of Pages 02
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
B-FINANCIAL MANAGMENT
International Financial Management
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Finance function.
Multi-national firm.
Exchange rate.
Foreign trade.
Cash management.
Forex risk.
SECTION B
Answer any three questions. x 15 45)
Q2) Explain in detail about International economic issues and their dimensions.
Q3) Describe the frame work of balance of payments.
Q4) Explain the determination of exchange rate.
Q5) Describe about International receivables management.
Q6) Discuss about the Forex regulation and control.
Q7) How do you manage transaction exposures? Explain.
SECTION C
(Compulsory) (10 Marks)
Q8) Case Study:
A US multinational is planning to set up a subsidiary in India. The initial project
cost is estimated to be US $10 billion. The working capital requirement would be
Rs.2 billion. The project is to generate a cash inflow of Rs.7 billion/year in first 3
years and then a growth of 5 percent per year is expected upto the 8th year.
Thereafter, there will be a decline of 7 percent in growth per year and the project
will be closed down at the end of 12 years. Consider a discount factor of 12
percent and depreciation of rupee against dollar at the rate of 1 percent per year.
Is the project worthwhile? Tax rate in India is 35 percent. Study the project from
the point of view of both the US multinational and Indian subsidiary. The current
exchange rate is Rs.45/US
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
B-FINANCIAL MANAGMENT
International Financial Management
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Finance function.
Multi-national firm.
Exchange rate.
Foreign trade.
Cash management.
Forex risk.
SECTION B
Answer any three questions. x 15 45)
Q2) Explain in detail about International economic issues and their dimensions.
Q3) Describe the frame work of balance of payments.
Q4) Explain the determination of exchange rate.
Q5) Describe about International receivables management.
Q6) Discuss about the Forex regulation and control.
Q7) How do you manage transaction exposures? Explain.
SECTION C
(Compulsory) (10 Marks)
Q8) Case Study:
A US multinational is planning to set up a subsidiary in India. The initial project
cost is estimated to be US $10 billion. The working capital requirement would be
Rs.2 billion. The project is to generate a cash inflow of Rs.7 billion/year in first 3
years and then a growth of 5 percent per year is expected upto the 8th year.
Thereafter, there will be a decline of 7 percent in growth per year and the project
will be closed down at the end of 12 years. Consider a discount factor of 12
percent and depreciation of rupee against dollar at the rate of 1 percent per year.
Is the project worthwhile? Tax rate in India is 35 percent. Study the project from
the point of view of both the US multinational and Indian subsidiary. The current
exchange rate is Rs.45/US