DISTANCE EDUCATION
P.G.D.B.M. EXAMINATION, MAY 2017.
FINANCIAL MANAGEMENT
(2005 Onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. Describe the fundamental principles of financial decision.
2. Determine the need and determinants of working capital
for manufacturing concern.
3. What do you mean by optimum capital structure?
4. What is working capital management? Distinguish
between permanent and temporary working capital.
5. What is meant by cost of capital? What are the
components of cost of capital?
6. Define: Leverage. Explain its types.
7. What are the bonus shares? How do they benefit the
shareholders?
8. What factors would you, as a lessee, keep in mind while
selecting the lessor?
Sub. Code
12
DE-007
2
Sp 1
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Explain the concept of leasing. State its advantages and
limitations.
10. What are the main functions of the modern finance
manager? How do they differ from those of the traditional
finance manager?
11. What are the factors a borrower should consider before
obtaining a loan from the lending institution and also to
obtain the best possible terms?
12. Explain the salient features of the 'present value method'
of project evaluation and examine its rationality.
13. What is the working capital management? Bring out role
of various constituents of working capital.
14. What is MM approach to the problem of capital structure.
Under what assumptions do their conclusions hold good?
15. Explain the concept of 'Cost of Capital'. Also explain
different types of costs.