Model Questions for EPGDM Corporate Finance 005 - Model Questions for EPGDM Corporate Finance Ten mark questions 1 Financial Management in addition to

Model Questions for EPGDM Corporate Finance 005 - Model...

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Model Questions for EPGDM Corporate Finance Ten mark questions 1. ‘Financial Management in addition to raising funds, is directly concerned with production, marketing and other functions within an enterprise whenever decisions are made about the acquisition or destruction of assets”. Elucidate. 2.What is the scope of Financial Management in an organization? 3.Why is the consideration of time important in financial decision - decision making? How can time value be adjusted? Illustrate your answer. 4.“Working capital of a manufacturing concern is totally related to sales and this is the reason it is very difficult to estimate and manage it”. Do you agree? Discuss. 5.What is Financial and Operating risk? Can they be avoided? Give an illustration 6.What is the difference between the effective and nominal interest rate? Illustrate 7.What is agency problem? How can this be avoided in organizations? 8. Forecasting the future economy is the most important for a finance manager while he makes decisions – Enumerate with example 9.What is the capital asset pricing model? Explain its assumptions and implications1
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10.What is the impact of debt in the capital structure on the EPS and ROE of the company? 11.Define cost of capital? Explain its significance in financial decision making. 'The retained earnings is cost free'. Do you agree? Give reasons. 12. Elucidate the uses of float in cash Management with example 13.What is the difference and similarity between Bonus shares and Stock Split? Are these adding value to the shareholder?
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