Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 2nd Semester (Second Semester) R17 2018 Dec 742AC Financial Management Previous Question Paper
Code No: 742AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA II Semester Examinations, December - 2018
FINANCIAL MANAGEMENT
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1. Answer the following in about five sentences each:
a) Future Value and Present value [5]
b) What is IRR? How is it different from NPV? [5]
c) State MM hypothesis. [5]
d) Differentiate ?cash credit? from ?credit trade?. [5]
e) What are the objectives of effective cash management? [5]
PART - B 5 ? 10 Marks = 50
2. Define ?financial management?. Discuss the scope of financial management. [10]
OR
3. Explain the stages & steps involved in the modern approaches to Financial Management.
[10]
4. Explain the various relevant Costs in the Cost of Capital and their measurement. [10]
OR
5. The expected cash flows of a project are as follow:
Years Cash flow
0 (-1,00,000)
1 30,000
2 40,000
3 50,000
4 60,000
5 70,000
The cost of capital is 12 percent. Calculate the following:
a) Payback period
b) Net Present Value [5+5]
6. Explain the three approaches for designing and determining a Firm?s Capital Structure,
with suitable example illustrations for each approach. [10]
OR
7. Explain the determinants of dividend policy in a fast growing company. Should there
be a dividend freeze? [10]
R17
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Code No: 742AC
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA II Semester Examinations, December - 2018
FINANCIAL MANAGEMENT
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries
10 marks and may have a, b, c as sub questions.
PART - A 5 ? 5 Marks = 25
1. Answer the following in about five sentences each:
a) Future Value and Present value [5]
b) What is IRR? How is it different from NPV? [5]
c) State MM hypothesis. [5]
d) Differentiate ?cash credit? from ?credit trade?. [5]
e) What are the objectives of effective cash management? [5]
PART - B 5 ? 10 Marks = 50
2. Define ?financial management?. Discuss the scope of financial management. [10]
OR
3. Explain the stages & steps involved in the modern approaches to Financial Management.
[10]
4. Explain the various relevant Costs in the Cost of Capital and their measurement. [10]
OR
5. The expected cash flows of a project are as follow:
Years Cash flow
0 (-1,00,000)
1 30,000
2 40,000
3 50,000
4 60,000
5 70,000
The cost of capital is 12 percent. Calculate the following:
a) Payback period
b) Net Present Value [5+5]
6. Explain the three approaches for designing and determining a Firm?s Capital Structure,
with suitable example illustrations for each approach. [10]
OR
7. Explain the determinants of dividend policy in a fast growing company. Should there
be a dividend freeze? [10]
R17
8. What do you mean by Working Capital? What are the various sources of working
capital financing available to business organizations? Explain in detail. [10]
OR
9. The turnover of Manjunatha Ltd. is Rs.60 lakhs of which 80% is on credit. Debtors are
allowed one month to clear off the dues. A factor is willing to advance 90% of the bills
raised on credit for a fee of 2% a month plus a commission of 4% on the total amount
of debts. Manjunatha Ltd. as a result of this arrangement is likely to save Rs.21,600
annually in management costs and avoid bad debts at 3% on the credit sales. A bank
has come forward to make an advance equal to 90% of the debts at an annual interest
rate of 20%. However, its processing fee will be at 3% on the debts. Suggest whether
you would accept factoring or the offer from the bank? [10]
10. Explain the inventory management process. [10]
OR
11. Differentiate ?Mergers? from ?Acquisitions? and ?Take overs?. How can ?Merger
proposals? be evaluated? [10]
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This post was last modified on 23 October 2020