← 3 a) How do you think the trend of capital structure across the Indian corporates affect the economy as a whole? b) What proportion of debt and equity should be taken up in the capital structure of a firm? c) Discuss the theories that are propounded to understand the relationship between financial leverage and value of the firm.
5 A) Indicate whether the operating cycle in the following industries is short (less than 30 days), medium (less than 6 months) or long (more than 6 months) Steel, rice, vegetables, fruits, jewelry, processed food, furniture, mining, flowers and textiles b) Companies with the shortest working capital cycles have current ratios much lower than the firms with longer cycles. What is your view on this statement? How do you think the operating cycle affects operating profit margins? c) Discuss the relationship between working capital management and market performance of a company? Do you think the kind of relationship varies depending on the type of industry? →