Financial Management - What is meant by capital budgeting decision

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Financial Management

Q1. What are Strike Price and Option Price? (10 marks)

Q2. Different types of investments time horizons. (10 marks)

Q3. What is meant by capital budgeting decision? (10 marks)

Q4. To avoid the problem of shortage and surplus of funds, what is required in financial management? Name the concept and explain four points of importance. (10 marks)

Q5. Discuss how Working capital affects both the liquidity and profitability of a business

Q6. Where will you show purchase of furniture in cash flow statement? (10 marks)

Q7. Describe the duties of the financial manager in a business firm. (10 marks)

Q8. Compare and contrast a defined benefit and a defined contribution pension plan.

Assignment Solutions, Case study Answer sheets

Project Report and Thesis - Contact

aravind.banakar@gmail.com

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ARAVIND – 09901366442 – 09902787224

Finance Management - What is meant by capital budgeting decision

Answer Sheet, Project Reports, Thesis Reports contact

aravind.banakar@gmail.com

www.mbacasestudyanswers.com

ARAVIND – 09901366442 – 09902787224

Finance Management

1. A stock is expected to pay a dividend of Rs.0.75 at the end of the year. The required rate of return is ks = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?

2. Suppose you approach a bank for getting loan. And the bank offers to lend you Rs.1, 000,000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the following terms required by the bank: Par Value = Rs 1,00,000 Maturity = 3 years Coupon Rate = 15% p.a, Security = Machinery You are required to calculate the cash flow of the bank which you will pay every month as well as the present value of this option.

3. How negatively correlated investments behave in a market?

4. Why does diversification reduce risk?

5. State the decisions involved in Financial management

6. What is meant by capital budgeting decision?

7. Discuss how Working capital affects both the liquidity and profitability of a business

8. What is meant by Working capital? How is it calculated? Explain the determinants of working capital requirement

Answer Sheet, Project Reports, Thesis Reports contact

aravind.banakar@gmail.com

www.mbacasestudyanswers.com

ARAVIND – 09901366442 – 09902787224