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3 marks questions

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Define commercial paper


What is a lock box system
What is the annual cost associated with 2/20 net 50?
What is Re-order point? How do you compute it?
What does u mean by optimum capital structure?
State the Gordons basic valuation formula.
What is discriminant analysis?
What is corporate dividend tax?
Explain the operating and financial synergies of mergers.
What is conglomerate merger?
What are the features of ideal capital structure?
Briefly explain the symptoms of industrial sickness.
What do you mean by working capital leverage?
Mention any three motives of holding cash.
What is the annual cost associated with 2/15 act 45?
What is carrying cost and ordering cost? Give two examples for each.
Give any three critical assumptions of NOI approach to capital structure.
What are three important events and dates in the dividend payment procedure?
What are the 5Cs of credit management?
What do u mean by bank float?
What do u mean by agency cost?
What is the annual percentage interest cost associated with the following credit terms:
Assume 360 days in a year 1/10 net 30.
What is ABC analysis?
State any three assumptions of capital structure theories.
Lists the costs associated with inventory management.
Mention the four capital structure theories.
What do u mean by dividend?
How zero working capital is possible for a firm?
Compare a bonus issue with a stock split.
What do you mean by float and what are its types?
Mention the sources oif information to do credit analysis in terms of 5Cs.
What is operating cycle and how is it computed?
What are the costs associated with accounts receivables?
What is lead time in inventory management? What role it plays?
State any three relevance theories of dividends.
What are secured premium notes.
Write a short note on stock dividend.
Define EOQ with an illustration.
What do u mean by Hybrid Financing?
What is private equity?
What are the uses of corporate financial models?
Distinguish between permanent and temporary working capital.

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Write a brief note on stone model of cash management.


State the reasons for divisionalisation.
What is the goal of working capital management?
What are the assumptions in calculating EOQ in inventory management?
What are the objectives of receivables management?
Differenciate between explicit cost and implicit cost wrt cost of debt.
What are corporate financial models? What are their users?
What factors determine working capital requirement?
Define agency problem.
Explain operating cycle and cash cycle.
What do u mean by ageing schedule?
Mention the three important dimensions of a firms credit policy.
What factors are relevant while selecting short term investment instruments? Give few
examples of such instruments.
56. Explain in brief motives for holding cash.
57. What are dividend policy implications of walter model and gorden model?

5 marks questions
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Write a note on lethargy float and postal float.


Explain the rationale behind bonus issue and stock split
Outline the walter model of dividend relevance.
What are the assumptions of MM approach of capital structure.
Write a note on optimum level of current assets.

7 marks questions
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What are the important forms of working capital advance given by banks? Explain in brief.
What is MVA? What is the link between EVA and MVA? Explain in brief
Explain the numerical credit scoring system used for credit evaluation.
What are the important reasons for mergers and takeovers?
What are the causes of industrial sickness?
Explain the Operating and Financial synergies of mergers
Explain EVA and MVA.
Discuss pros and cons of credit period and cash discount
What are the 5Cs of traditional credit analysis? Explain each in brief.
List various factors that affect capital structure. Explain any three of them.
Write down the Gordons dividend/valuation formula. What are the assumptions upon
which the model is based?
What is factoring? Explain the types of factoring.
What are the different types of factoring? Explain any three in detail.
Explain briefly the strategies available to a firm for managing surplus cash.
Elucidate the various revival measures adopted by sick units.

16. Describe the various methods of pricing raw materials.


17. Discuss how multivariate analysis can be employed for predicting industrial sickness.
18. Explain the cost and risk considerations of hedging and conservative approaches of financing
working capital of a firm.
19. What are the legal aspects of dividends in India?
20. What is venture capital fund? Explain its distinguishing features.
21. What is a selective control of inventory? Why is it needed? Illustrate ABC analysis with an
example and graph
22. How can the appropriate level of operating cash balance be determined? How does
uncertainty affects this problem?
23. Explain the assumptions and implications of the NI approach and the NOI approach.
Illustrate your answer with hypothetical examples.
24. What are the advantages and disadvantages of divisionalization?
25. What are credit terms? Explain each of the credit terms and the significance of major
components of credit terms in receivables management.
26. Discuss the strategies for managing surplus funds.
27. Explain the different credit policy variables for an effective credit management
28. What is divisionalization? Explain the different techniques to measure the divisional
performance
29. Explain the motives for holding inventories.
30. What are the assumptions regarding cash flow pattern under Baumol, Millor-ORR and stone
model.
31. Explain the features and assumptions underlying the relationship of investment decision and
dividend policy under gorden model and MM theory.
32. Write note on receipts and disbursement method.
33. What is factoring. Explain the mechanism of factoring.
34. Discuss the features of Miller- and orr cash management model.
35. Evaluate ROI and RI as performance measures. Indicate their relationship
36. Discuss briefly the considerations relevant for determining the payout ratio.
37. Explain NI and NOI approaches applicable to capital structure.

10 marks questions
1. What leads to the failure of a merger or acquisition? How should a company ensure that
merger or acquisition is successful?
2. Explain various short term sources to finance working capital.
3. What is a sick industry?. Explain the usual components of a typical sick unit revival
programme.
4. Discuss
a. Commercial papers
b. Certificate of deposits as sources of working capital finance.
5. What are the three broad approaches to value intangible assets? Explain them briefly.
6. What are the characteristics or features of intangible assets or intangible asset intensive
firms? What are their implications for financial management?

7. Explain the concept of EVA. What are the merits? How can EVA be improved?
8. Describe briefly the important types of intangible assets and the approaches to valuing it.
9. What do you mean by sickness? What are the symptoms of sickness? What strategies do u
suggest to overcome sickness?
10. What is factoring? What function does it perform? Explain the features of various types of
factoring.
11. Enumerate the legal procedure and tax aspects relating to corporate dividend payments in
India.
12. Discuss the internal and external devices for containing agency costs.