Financial Management, Question Paper of MBA 2nd Semester,Download Previous Years Question Paper 2

Roll No. ……………..                                                                                          Total No. of Pages: 2

Total No. of Questions: 15

MBA  IB (Sem – 2^nd)

FINANCIAL MANAGEMENT

SUBJECT CODE: MBA – 205

 Paper ID: [C0250]

Time: 03 Hours                                                                                   Max. Marks: 60

 

SECTION-A

NOTE: Attempt any FOUR questions from Section-A. Each question carries FIVE marks

Q1.     Discuss conflict in profit versus wealth maximization objective.

            Discuss the concept of “Optimal Capital Structure”.

Q.2.    Discuss the concept of Debt-Equity or EBIT-EPS indifference point, while determining the capital structure of a company.

Q.3.    Explain the relevance of time value of money in financial decisions.

Q.4.    What do you understand by temporary working capital? How it should be financed?

Q.5.    How the valuation of warrants and convertibles is done?

SECTION – B

NOTE: Section B consists of four sub sections I, II, III, IV. Attempt any one question from each of the sub- section. Each question carries EIGHT marks.

Unit – I

Q.6.    Examine the role of finance manager in the changing scenario? What is the various decisions making areas of finance manager?

Q.7.    Explain the concept of valuation? How the valuation of various securities done?

Unit-II

Q.8.    Compare and Contract NPV vs. IRR as method of appraising capital investment which method is better and why?

Q.9.    Explain the various methods for incorporating risk and uncertainty in the capital budgeting process.

Unit-III

Q.10. Explain the dividend irrelevance theory promoted by Modigliani and Miller. How they support their proposition?

Q.11. Explain the various models of dividend policy? Do you think that they are relevant?

Unit-IV

Q.12. What is working capital management all about? How the risks return trade off is done in working capital management?

Q.13. Why Inventories are required in the organization? What are the various techniques of inventory management?

SECTION – C

NOTE: This question is compulsory and carries 8 marks.

Q.15. Equipment A has a cost of Rs. 75,000 and net cash flow of Rs. 20,000 per year, for six years. A substitute equipment B would cost Rs. 50,000 and generate net cash flow of Rs. 14,000 per year for six years. The required rate of return of both equipments is 11 percent. Calculate the IRR and NPV for the equipments. Which equipment would be accepted and why?