Download JNTUA MBA 2017 Nov 4th Semester 14E00407 International Financial Management Question Paper

Download JNTU Anantapur (Jawaharlal Nehru Technological University Anantapuramu) MBA 2017 November Fourth Semester (4th Semester/2-2) Regular & Supplementary Examinations 14E00407 International Financial Management Question Paper.

Code: 14E00407

MBA IV Semester Supplementary Examinations November/December 2017
INTERNATIONAL FINANCIAL MANAGEMENT
(For students admitted in 2014 & 2015 only)
Time: 3 hours Max. Marks: 60
All questions carry equal marks
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SECTION ? A
Answer the following: (05 X 10 = 50 Marks)

1 Discuss the concept of IFM and differences between financial management and international financial
management.
OR
2 Describe the role of IMF, funding facilities and SDRs by IMF.

3 What are the sources of supply and demand for foreign exchange? Discuss how do you measure international
trade and investment.
OR
4 What is foreign exchange market? Explain the structure and types of transactions in foreign exchange market.

5 Discuss in detail the significance of theory of purchasing power parity in determining the rate of exchange.
OR
6 Give a light on various exchange rate regimes and Central Bank interventions in exchange rates.

7 Explain the methods under non-discounting criteria with their advantages and disadvantages which are used to
evaluate the financial viability of a project.
OR
8 What risks are associated with cross-border investment decisions ? Give an example for risks involved in a
project evaluation?

9 Explain the objectives, advantages, importance and limitations of cash management.
OR
10 Explain the concept, significance and components of cost of capital.

SECTION ? B
(Compulsory Question) 01 X 10 = 10 Marks
11 Case study:
An enterprise can make either of two investments at the beginning of 2000. Assuming required rate of return of
10% p.a., evaluate the investment proposals under (a) ARR. (b) NPV. (c) IRR.
The forecast particulars are given below:
Particulars Proposal ? A Proposal - B
Cost of investment (Rs.) 20000 28000
Life (years) 5 5
Scrap value (Rs.) 2000 2800
Profit (after depreciation and tax)
Year Rs. Rs.
End of 2000 1000 1500
2001 2000 3900
2002 3600 4100
2003 2900 4300
2004 1700 4200
It is estimated that each of the alternative projects will require an additional working capital of Rs.2000 which will
be received back in full after the expiry of each project life. Depreciation is provided under straight line method.
Also offer your comments.
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