problem 1: What do you mean by stable dividend policy? Why must it be followed?

problem 2: Differentiate between Wealth maximization and Profit maximization.

problem 3: Describe in detail about discounted cash flow methods.

problem 4: Describe the Net Income approach and Net operating income approach of capital structure.

problem 5: In brief describe the Walter’s model of dividend theory.

problem 6: What are the different methods of Inventory management methods? Describe.

problem 7: XYZ company’s equity shares are presently selling at Rs. 120 per share. The historical patterns of dividend payments per share for the years 2006–10 are shown below:

Year          Dividend
                  Rs.
2006         10.00
2007         10,50
2008         14.00
2009         15.70
2010         16.00

You are required to compute:

a) Growth rate in dividends.
b) Cost of equity capital supposing the growth rate computed in (a) above continues.