5 Financial Management.pdf - Financial Management Total Marks 100 SECTION \u2013A Q1 Attempt any 15(15X2=30 1 The only feasible purpose of financial

5 Financial Management.pdf - Financial Management Total...

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Financial Management Total Marks: 100 SECTION A Q1. Attempt any 15 (15X2=30) 1 The only feasible purpose of financial management is a Wealth Maximization b Sales Maximization c Profit Maximization d Assets maximization 2 Agency cost consists of a Binding b Monitoring c Opportunity and structure cost d All of the above 3. The objective of wealth maximization takes into account a Amount of returns expected b Timing of anticipated returns c Risk associated with uncertainty of returns d All of the above 4. Financial management mainly focuses on a Efficient management of every business b Brand dimension c Arrangement of funds d All elements of acquiring and using means of financial resources for financial activities
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5. Time value of money supports the comparison of cash flows recorded at different time period by a Discounting all cash flows to a common point of time b Compounding all cash flows to a common point of time c Using either a or b d None of the above. 6. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: a 10% per annum b 10.10 per annum c 10.25%per annum d 10.38% per annum 7. If nominal rate of return is 10% per annum and annual effective rate of
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  • Fall '19
  • Finance, Modern portfolio theory, Marutham Investment Bond

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