Download JNTUA MBA 2018 May-June Supply 2nd Sem 9E00202 Financial Management Question Paper

Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 2018 May-June Supplementary 2nd Sem 9E00202 Financial Management Previous Question Paper

Code: 9E00202

MBA & MBA (Finance) II Semester Supplementary Examinations June/July 2018
FINANCIAL MANAGEMENT
(For students admitted in 2013 (LC), 2014, 2015 & 2016 only)

Time: 3 hours Max. Marks: 60

Answer any FIVE questions
All questions carry equal marks
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1 Elaborate the nature and scope of financial management.

2 The expected cash flows of a project are as follows:
Year 0 1 2 3 4 5
Cash flow -1,00,000 20,000 30,000 40,000 50,000 30,000
The cost of capital is 12%. Calculate the following:
(i) Net present value (NPV). (ii) Internal rate of return (IRR).

3 Discuss the ways and means used in practice to manage risk.

4 The capital structure of Adams Ltd., in book value terms is as follows:
Equity capital (20 million shares 10 par) 200 million
Preference capital 12% (5,00,000 shares 100 par) 50 million
Retiled Earnings 350 million
Debentures 14% (12,00,000 debentures 100 par) 120 million
Term loans 13% 80 million
800 million
The next expected dividend per share is 2.00. The dividend per share is expected to grow at the
rate of 12%. The market price per share is 50. Preference stock, redeemable after 10 years, is
currently selling for 85 per share. Debentures, redeemable after 5 years, are selling for 90 per
debenture. The tax rate for the company is 30%. Calculate average cost of capital.

5 Describe the dividend policies of Indian companies.

6 The finance department of Prasanth textile co., gathered the following:
Carrying costs per unit of inventory are 10.
The fixed costs per order are 20.
The number of units required is 30,000 per year.
The variable costs per unit ordered are 2.
The purchase cost price per unit is 30.
(i) Determine EOQ.
(ii) Compute total number of orders in a year.

7 What are the different forms of mergers and acquisitions?

8 Discuss corporate governance in India in detail.

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