MAY 2013 P/ID 28507/PCMG

Time : Three hours Maximum : 100 marks

SECTION A (10 2 = 20 marks)
Answer ALL questions each in 50 words.
1. What is bank credit?
[QU Ph G G?
2. Define financing planning.
{vz vmhh CUPn T.
3. List out the types of leverage.
PP mikP.
4. Expand : WACC.
UP uP : WACC.
5. What is risk?
Chk G G?
6. State any two demerits of excessive working
capital.
AvPi |h u Hu C
wPU T.
(6 pages)
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7. Define cash management.
UP s CUPn uP.
8. Explain Bond dividend.
zv [Pu .
9. Write down two limitations of CAPM.
CAPM C SkP GxP.
10. Explain the term futures.
[P G zu USP.
SECTION B (5 6 = 30 marks)
Answer ALL questions each in 200 words.
11. (a) Define trade credit. State its merits.
Ph CUPn T Au
|P ?
Or
(b) What are the objectives of financial
management?
{v s SUPP
G ?
12. (a) List out the assumptions of MM approach.
MM AqS A[P
mikP.
Or
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(b) Compute weighted average cost of capital.
Source Amount After tax cost %
Equity share 2,00,000 8
Pref. share 3,00,000 10
Debenture 5,00,000 12
vmh \\ uU Q
PnUQkP.
uP US
AhUP %
\un [S 2,00,000 8
[S 3,00,000 10
Ph zv 5,00,000 12
13. (a) Explain the importance of investment
decisions.
umk w[P UQzx Szx
USP.
Or
(b) Define working capital. State its concepts.
|hCUPn T. Au
PmkP .
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14. (a) What are the objectives of inventory
management?
\UQ s SUPP
?
Or
(b) Why stable dividend policy is preferable?
{ [PuU PP H ]ux?
15. (a) Discuss the significance of APT.
APT UQzxzu v.
Or
(b) Narrate the factors influencing risk
management.
Chmk s vUS
PoP uSzu.
SECTION C (5 10 = 50 marks)
Answer ALL questions each in 500 words.
16. (a) Explain the sources of long term finance.
}shP {v [P Szx .
Or
[P.T.O.]
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(b) Functions of financial management is
inevitable. Do you agree? Elucidate.
{v s oP uUP
iux CUPzu HU P?
uSzxUP.
17. (a) What are the elements of optimum capital
structure?
Ezu u A TP ?
Or
(b) State the causes of under capitalisation. How
will you overcome under capitalisation?
S uUPzv Pn[P T, Au
G \ \ Gu USP.
18. (a) How will you evaluate investment proposals?
umk vmh[P G vk
\?
Or
(b) List out the factors affecting working capital.
|h u vUS PoP
mikP.
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19. (a) Discuss the utility of cash budget.
UP vmh AUP k
v.
Or
(b) Narrate the factors influencing dividend
policy.
[Pu PP vUS PoP
.
20. (a) What are the assumptions of CAPM?
CAPM A[P ?
Or
(b) Highlight the various types of risks.
ChkP PP
uSzxUP.