Download JNTUA MBA 2018 May-June Supply 2nd Sem 17E00204 Financial Management Question Paper

Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 2018 May-June Supplementary 2nd Sem 17E00204 Financial Management Previous Question Paper

Code: 17E00204

MBA & MBA (Finance) II Semester Regular Examinations June/July 2018
FINANCIAL MANAGEMENT
(For students admitted in 2017 only)

Time: 3 hours Max. Marks: 60

SECTION ? A
(Answer the following: (05 X 10 = 50 Marks)

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1 How does the modern financial management differ from the traditional financial management? Does
the modern financial manager?s role differ from the large diversified firm and the small to medium size
firm?
OR
2 ?The ultimate goal of financial management is to increase the market value of the firm?. Discuss.

3 Explain the concept of risk. What are the advantages of using risk adjusted methods for capital
budgeting proposals?
OR
4 ABC Ltd. Is considering the purchase of machines. Two machines X and Y each costing Rs.50,000
are available. Earnings after taxes are expected to be as under. Suggest the company accordingly.
Year Machine X (Rs) Machine Y (Rs) Discount factor at 10%
1 15000 5000 0.909
2 20000 15000 0.862
3 25000 20000 0.751
4 15000 30000 0.683
5 10000 20000 0.621


5 What is capital structure? What are the determinants of capital structure?
OR
6 Why is computation of cost of equity more complicated than that of other capital components?
Explain.

7 What is the focus of gross working capital on the management of current assets?
OR
8 What are ordering and carrying costs? What is their role in inventory control?

9 Explain the principles of good corporate governance.
OR
10 What are the advantages and disadvantages of mergers and takeovers?

SECTION ? B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study:
The earning shares of company are Rs.8 and the rate of capitalization applicable to the company is
10%. The company has before it, an option of adopting a dividend payout ratio of 0% or 25% or 50%
or 75% or 100%. Using Walters model compute the market value of the company?s share if the
productivity of retained earnings is: (i) 15%. (ii) 10%. (iii) 5%.

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