Finance Management

27 Jun

1. Briefly define the terms proprietorship, partnership, and corporation.

2. Why do we add back non-cash items to net profit while calculating cash flow from operating activities?

3. “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.

4. Explain the impact of interest rate on long term and short term bonds?

5. What is Merger? Is it harmful or beneficial? Explain n Justify

6. Suppose Govt. pay coupon on its bond quarterly; calculate the intrinsic value of bond under following circumstances: 10 Year bond with 10% coupon rate is selling at Rs. 1050 face value of bond is Rs. 1000. Required rate of return is 12%.

6. What are Strike Price and Option Price?

7. Define the Diversifiable Risk and Market Risk and Causes of Risk.

Finance Management

27 Jun

1. What is the future of Financial Risk Management?

2. Why the companies prefer to raise money through debt not through equity?

3. Briefly explain what call provision is and in which case companies use this option.

4. Calculate the market value of equity for a 100% equity firm using the following information extracted from its financial statements: EBIT = Rs. 50, 000, return on equity is 12%, amount of equity is Rs. 100, 000, tax rate is 35%.

5. What is correlation of coefficient?

6. Differentiate the real assets and securities.

7. Explain why financial planning is important to today’s chief executives?

8. What is a portfolio? Why an investor should invest his/her funds in a portfolio rather than in the stocks of a single corporation.