MMS Course - Semester - 3

Advanced Financial Management

Mumbai University theory questions of previous years
1) Explain the factors which determine the dividend policy of a
company.
2) Define what is sick industrial company and discuss the Altmans Z
score model in order to detect the financial health of industrial unit to
prevent sickness.
3) Write short notes on any two of the following :
(i) Trading on equity
(ii) Objectives and Functions of SEBI
(iii) Functions of Merchant Banker
(iv) Value based management
(v) Break-even analysis
(vi) Pecking Order theory
4) What do you mean by sensitivity analysis ? Explain the process of
identifying feasible projects and role of sensitivity analysis.
5) What is Net Present Value (NPV). How to assess the desirability of
any project based on this method ?
6) What do you understand by equivalent annualized value (EAV)?
Explain its meaning and way of computing by taking a suitable
example.
7) Explain in brief any two of the following :
(i) Due diligence
(ii) Break even analysis
(iii) Discounted cash flow
(iv) Price/Earning approach
8) (a) Explain the various financing options in respect of infrastructure
projects.
(b) Explain the procedure of raising the finance through IPO.
9) What are the possible causes of a sick industrial units. What
according to you can be typical revival programme to revive the sick
industries ?
10) Discuss the price/earning approach to stock valuation and adjusted
book value approach to corporate valuation.
11) Explain in brief any three of the following :
(i) Symptoms of sickness
(ii) Private placement
(iii) Key financial intermediaries
(iv) Important sources of financing long term projects in India
(v) Due diligence
(vi) Procedure for IPO
12) (a) What are the major problems associated with disinvestment of
PSUs in India ?
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(b) Describe and evaluate the adjusted book value approach to

corporate valuation.
13) (a) What do you understand by Financial Derivatives. Explain in
detail.
(b) Explain the important functions of CRISIL.
14) Explain the important functions of either CRISIL or ICRA.
15) (a) Discuss the Price / Earnings approach to stock valuation.
(b) Describe and evaluate the adjusted book value approach to
corporate valuation.
16) Explain in brief any three of the following :
(a) Revival programme for a sick industrial unit,
(b) Procedure pertaining to IPOs
(c ) Regulation of Financial Markets in India.
(d) Rationale for disinvestment in Public Sector Enterprises.
(e) Important sources of financing long term projects in India.
(f) Financial Interest Rate Swaps.
17) Explain with examples any two methods of corporate valuation
which can be used to calculate the value of a company.
18) Explain the various financing options in respect of infrastructure
projects.
19) What are the benefits to investors because of the existence of
financial intermediaries.
20) What are the importance of financial intermediaries in the Indian
Financial system ? Explain.
21) (a) Explain the importance functions of an investment banker and
his role in primary issue management.
(b) Explain in brief the process and methodology followed by a rating
agency in rating a financial instruments.
22) What are the possible causes of an industrial unit becoming a sick
unit ?
23) Answer any two of the following :
(i) Explain the role of SEBI in brief as the regulator of financial
market.
(ii) Explain in simple words Financial Interest Rate Swaps.
(iii) Explain off-shore and on-shore instruments and multiple
option bonds.
24) Explain in brief any three of the following :
(i) Due diligence
(ii) FIPB and Joint Venture formulation
(iii) Loan Syndication
(iv) Process of Bond valuation
(v) Procedure for IPO
(vi) Any five factors which determine the capital structure of a
company
(vii) MoU between Govt. and PSUs
(viii) Venture Capital Funding in India
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(ix) Revival of sick unit and viability study

(x) Regulation of Financial Markets in India
25) There are two main regulators to regulate the Indian Financial
System RBI and SEBI. Explain the role of SEBI in detail. Do you think
that these two agencies can be merged to create a super regulatory
body for an effective regulation of the financial system.
26) (i) Explain the different ways in which a venture capitalist can
finance an investment proposal.
(ii) What do you understand by Financial Derivatives. Explain in
detail.
27) Write short notes on any three of the following :
(i) Credit Rating methodology for a financial instrument
(ii) Book building process for IPO
(iii) Revival programme for a sick unit
(iv) Functions of investment bank
(v) Rationale for disinvestment in public sector enterprise
28) Explain the functions and significance of financial system of any
country.
29) (i) Explain the Balance Sheet approach to fire valuation.
(ii) What is the Interest Rate Risk ? How are values of bonds
affected when the market rate of interest changes.
30) (i) What is the difference between Forward and Future Contracts
(ii) Explain the concept of currency Swap with a suitable
example.
31) Write a short notes on any three of the following :
(i) Effects of industrial sickness
(ii) Right issue of a security
(iii) American Depository Receipt and Global Depository Receipt
(iv) Venture Capital,
(v) Project appraisal techniques
(vi) Disinvestment of PSUs
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