DISTANCE EDUCATION
P.G.D.B.M. EXAMINATION, MAY 2016.
FINANCIAL MANAGEMENT
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Define the term Financial Management. Explain the
scope of financial management.
2. What is optimum capital structure?
3. Explain the difference between NPV and IRR methods.
4. Explain the concept of working capital.
5. Elucidate the various methods of computing cost of debt
capital.
6. What is the need and significance of capital budgeting?
7. Explain the various types of debentures.
8. Discuss the various factors affecting dividend decisions.
PART B — 15 60 marks)
Answer any FOUR questions.
9. What are the different functions of financial
management?
10. Explain the sources from which a large sized industrial
enterprise can raise capital for its various requirements.
Sub. Code
12
DE-3207
WS
2
11. Critically examine the Net Income and Net operating
approach to capital structure.
12. Explain the various techniques of appraising capital
projects.
13. What are the different types of working capital?
14. Explain the important steps in the capital budgeting
process.
15. Examine the assumptions underlining the irrelevance
hypothesis of Modigliani and Miller regarding dividend
distribution.