Jawaharlal Nehru Technological University, Hyderabad MBA-II Semester Supplementary Examinations July 2010 FINANCIAL MANAGEMENT Question paper

Code No: 12002

Time: 3hours Max.Marks:60

Answer any Five questions
All questions carry equal Marks

1. How does the notion of risk and reward govern the behaviour of the financial manager?

2. Define capital rationing. How are projects ranked under capital rationing?

3. Why is computation of cost of equity capital more complicated than that of other capital components? Explain.

4. What is the objective of capital structure management?

5. Define the term 'Dividend'. State the various issues in dividend policy in the global
corporate sector.

6. What is the focus of gross working capital on the management of current assets?

7. What are the strategies regarding the facets of cash management for an effective and
efficient cash management?

8. What is Account receivable? Discuss the importance of receivables management.

Jawaharlal Nehru Technological University, Hyderabad MBA-II Semester Supplementary Examinations July 2010 FINANCIAL MANAGEMENT Question paper

Code No: 22002

Time: 3hours Max.Marks:60

Answer any Five questions
All questions carry equal Marks

1. What is the nature of the risk, return trade off faced in financial decision making?

2. How are the projects evaluated on the basis of IRR method? Evaluate this method as project appraisal technique.

3. Explain how the cost of capital serves as a screening tool when dealing with
a) The net present value method and
b) The time adjusted rate of return method.

4. What is the relationship between leverage and the firm's cost of debt? How is leverage measured in this case?

5. Discuss the relationship between the dividend policy and the value of the firm.

6. Distinguish between gross working capital and net working capital.

7. What are the facets of cash management? Discuss its importance in a typical manufacturing company.

8. List out the benefits of liberal accounts receivable policy.