Financial Management
Q.1. Capitalisation of a firm refers to the composition of its long -term funds debt and equity. Discuss the theories of capitalization.
Q.2.
A) The share of Megha Ltd is sold at Rs 500 a share. The dividend likely to be declared by the company after one year is Rs 25 per share. Hence, the price after one year is expected to be Rs 550. What is the return at the end of the year on the basis of likely dividend and price per share?
B)A bond of face value of Rs 1000 and a maturity of 3 years pays 15% interest annually. What is the market price of the bond if YTM is also 15 %.
Q.3. Discuss the sources of capital of a company. Analyse the factors that affect the capital structure.
Q.4. A project costs Rs 50,000. It is expected to generate cash inflows as shown in table. If the risk free rate is 10%, compute NPV.
|
Year
|
Cash inflows
|
Certainty
equivalent
|
|
1
|
32000
|
0.9
|
|
2
|
27000
|
0.6
|
|
3
|
20000
|
0.5
|
|
4
|
10000
|
0.3
|
Q.5. Annual demand of a company is 30,000 units. The ordering cost per order is Rs 20 (fixed) along with a carrying cost of Rs 10 per unit per annum. The purchase cost per unit i.e., price per unit is Rs 32 per unit. Determine EOQ, total number of orders in a year and the time gap between two orders.
Q.6. Discuss the dividend policy of Dabur India Ltd for the last three years.