Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
Charges rs
125/subject and rs 700/semester only.
if urgent then call us
on 08791490301,
08273413412
DRIVE- WINTER 2015
PROGRAM- MBADS/
MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2
SEMESTER- 2
SUBJECT CODE &
NAME- MB0045- FINANCIAL
MANAGEMENT
Q1.
Capitalization of a firm refers to the composition of its long –term funds debt
and equity.
Discuss
the theories of capitalization.
(Explain each theory of capitalization)
2*5-10 marks
Answer.
Capitalization of a firm refers
to the composition of its long-term funds and its capital structure. It has two
components – Debt and Equity. After
estimating the financial requirements of a firm, the next decision that the
management has to take is to arrive at the value at which the company has
to be capitalized.
There are two theories of capitalization
for
Q2.
A)
The share of Megha Ltd is sold at Rs 500 a share. The dividend likely to be declared
by the company after one year is Rs 25 per share. Hence, the price after one
year is expected to be Rs 550. What is the return at the end of the year on the
basis of likely dividend and price per share?
B)
A bond of face value of Rs 1000 and a maturity of 3 years pays 15% interest
annually.
What
is the market price of the bond if YTM is also 15 %.
(A Problem-5, B problem-5) 10
marks
Answer.
a) Solution
Holding
period return = (D1 + Price gain/loss) / purchase price
= (25
+ 50) / 500 = 15%
The return at
Q3.
Discuss the sources of capital of a company. Analyze the factors that affect
the capital structure.
a)
Sources
b)
Factors that affect the capital structure
(Sources-5, Factors that affect
the capital structure-5) 10 marks
Answer.
Sources
of capital of a company
The possible sources of capital
that a company might use:
1.
Issue
of equity shares in the domestic capital market
2. Issue of equity (
3.
Q4. A project costs
Rs 50,000. It is expected to generate cash inflows as shown in table. If the
risk free rate is 10%, compute NPV.
(Compute
NPV) 10 marks
Solution.
Table
shows the computation of NPV
|
Year
|
Uncertain
cash inflows
|
CE
|
Certain cash flows
|
PV factor at 10%
|
PV of certain cash inflows
|
Q5. a) Annual
demand of a company is 30,000 units. The ordering cost per order is Rs 20 (fixed)
along with a carrying cost og Rs 10 per unit per anum. The purchase cost per unit
i.e., price per unit is Rs 32 per unit. Determine EOQ, total number of orders
in a year and the time gap between two orders.
a) EOQ
b) Total number of
orders in a year and
c) The time gap
between two orders.
(EOQ-5,
Total number of orders in a year-2, the time gap between two orders-2) 10 marks
Solution.
Q6. Discuss the
dividend policy of Dabur India Ltd for the last three years.
(Analyze
the dividend policy of Dabur India Ltd. For three years-3 marks each, (Comment
on dividend policy-1 marks) 10 marks
Answer.
DIVIDEND
Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
Charges rs
125/subject and rs 700/semester only.
if urgent then call us on 08791490301, 08273413412
No comments:
Post a Comment