# SMU MBA ASSIGNMENTS

## 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:

1. a) Operating Leverage
2. b) Financial leverage
3. 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%,

1. a) Compute the NPV using the risk free rate
2. 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 ”