SMU MBA sem 2- MB0045 FINANCIAL MANAGEMENT winter 2014
SMU MBA WINTER 2014-2015 solved Assignments
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SMU MBA WINTER 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”
DRIVE | WINTER 2014 |
PROGRAM | MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2 |
SEMESTER | II |
SUBJECT CODE & NAME | MB0045
FINANCIAL MANAGEMENT |
BK ID | B1628 |
CREDITS | 4 |
MARKS | 60 |
1 Explain the liquidity decisions and its important elements. Write complete information on dividend decisions.
Explanation of liquidity decisions with its important elements
Explanation of dividend decisions
2 Explain about the doubling period and present value. Solve the below given problem:
Under the ABC Bank’s Cash Multiplier Scheme, deposits can be made for periods ranging from 3 months to 5 years and for every quarter, interest is added to the principal. The applicable rate of interest is 9% for deposits less than 23 months and 10% for periods more than 24 months. What will be the amount of Rs. 1000 after 2 years?
Explanation of doubling period
Solving the problem
Explanation of present value
3 Write short notes on:
- a) Operating Leverage
- b) Financial leverage
- c) Combined leverage
Explanation of operating leverage
Explanation of financial leverage
Explanation of combined leverage
4 Explain the factors affecting Capital Structure. Solve the below given problem:
Given below are two firms, A and B, which are identical in all aspects except the degree of leverage employed by them. What is the average cost of capital of both firms?
Details of Firms A and B
Firm A | Firm B | |||
Net operating income EBIT | Rs. 1, 00, 000 | Rs. 1, 00, 000 | ||
Interest on debentures I | Nil | Rs. 25, 000 | ||
Equity earnings E | Rs. 1, 00, 000 | Rs. 75, 000 | ||
Cost of equity Ke | 15% | 15% | ||
Cost of debentures Kd | 10% | 10% | ||
Market value of equity S = E/Ke | Rs. 6, 66, 667 | Rs. 5,00, 000 | ||
Market value of debt B | Nil | Rs. 2, 50, 000 | ||
Total value of firm V | Rs. 6, 66, 667 | Rs. 7, 50, 000 | ||
Explanation of factors affecting capital structure
Solution for the problem
Interpretation
5 Explain all the sources of risk in capital budgeting with examples.
Solve the below given problem:
An investment will have an initial outlay of Rs 100,000. It is expected to generate cash inflows. Cash inflow for four years.
Year | Cash inflow | |
1 | 40000 | |
2 | 50000 | |
3 | 15000 | |
4 | 30000 |
If the risk free rate and the risk premium is 10%,
- a) Compute the NPV using the risk free rate
- b) Compute NPV using risk-adjusted discount rate
Explanation of risk in capital budgeting with examples
Solution for the problem with interpretation
6 Explain the objectives of Cash Management. Write about the Baumol model with their assumptions.
Explanation of objectives of cash management
Explanation of Baumol model with assumptions
SMU MBA WINTER 2014-2015 solved Assignments
Dear Students,
SMU MBA WINTER 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”