DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, MAY 2016.
FINANCIAL MANAGEMENT AND CONTROL
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Explain the main functions of financial management.
2. State the drawbacks of non-scientific financial
management.
3. Explain the various types of debentures.
4. What are the types of working capital?
5. Explain the importance of the capital structure.
6. Enumerate the basic problems in cash management.
7. What are the components of cost of capital?
8. What are the types of basing?
Sub. Code
21
DE-3579
2
Ws7
SECTION B — 15 60 marks)
Answer any FOUR questions.
9. What are the goals of financial management? Discuss
them in brief.
10. How would you estimate the capital requirements of a
newly promoted concern?
11. What are the factors determining working capital
requirements?
12. Firms U and L are engaged is same line if activity and
are identical in all respects except that firm U is
unlevered and firm L is levered with Rs. 1,80,000
debentures carrying 10% rate of interest. Both the firms
have income before interest and taxes of Rs. 60,000. The
company's tax rate is 50% and capitalisation rate 15%.
Compute the value of firm U and L using the net income
approach and M.M. approach.
13. What is weighted average cost of capital? Discuss the
merits and demerits of weighted average cost of capital.
14. What is inventory management? Explain its importance.
15. What are the factors which influence the dividend policy
of a firm?