DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Fourth Semester
MANAGEMENT OF FUNDS
(2012-13 Academic Year and 2013 Calendar Year only)
(English Medium Only)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Enumerate the short term sources of funds.
2. What factors influence allocation of capital?
3. What is floatation cost?
4. "Debt is cheaper source than equity". Illustrate.
5. Distinguish between financial and operating lease.
6. What is syndicated loan and what are its types?
7. What are the forces that drive towards global finance?
8. Enumerate the various instruments of international
bonds, international short term and medium term
instruments.
Sub. Code
421
DE-905
2
wk11
SECTION B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Discuss the factors affecting the choice of sources of
funds.
10. Explain how does inflation affect capital budgeting
decisions? Provide example.
11. Describe the problems faced in determining the Weighted
Average Cost of Capital (WACC). Explain the role of book
value weights and market value weights in calculating
WACC.
12. How do you design a capital structure of an organization?
Explain the various operating leverage and revaluation of
that organization's capital with an example.
13. Describe the options of venture capital financing.
14. Explain the financial issues and controversies involved in
financing through MNCs.
15. How would you apply the cost of capital concept when
projects with different risks are evaluated?