DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Fourth Semester
MULTINATIONAL FINANCIAL MANAGEMENT
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Explain the objectives of Multinational Financial
Management.
2. How International financial management is different
from Financial management at domestic level?
3. Explain the Capital Asset Pricing Model (CAPM) in two
country context.
4. Explain different methods of measuring country risk.
5. Discuss the merits and demerits of Payback period
method.
6. Describe the different sources of working capital
available to a Multinational Corporation.
7. Explain the objectives of receivable management.
8. What is cost of capital? Discuss its significance.
Sub. Code
43
DE-415
2
wk12
PART B — 15 60 marks)
Answer any FOUR questions.
9. "Liquidity and profitability (Risk-Return trade off) are
competing goals for the finance manager" Discuss.
10. Define risk. Explain the different types of risks involved
in Foreign Direct Investment of MNC.
11. Discuss the Internal Rate of Return method of capital
budgeting in detail.
12. Explain the functions of international cash management.
13. Discuss the role of credit standards in the credit policy
of MNC.
14. Describe the method of computation of cost of debt.
15. Briefly explain about euro bonds and euro commercial
paper.