SMU - Sem 2 QN papers
DRIVE
PROGRAM
SEMESTER
SUBJECT CODE &
NAME
BK ID
CREDIT
MARKS
ASSIGNMENT
SUMMER 2014
MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
II
MB0045
FINANCIAL MANAGEMENT
B1628
4
60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q.No
Question
Marks
Total Marks
1
TCS has emerged as India's most admired company ahead of Hindustan Unilever, ITC, and
Infosys, says global management consultancy Hay Group. TCS replaced last year's winner group company Tata Steel by scoring highest on parameters such as corporate governance, financial soundness, and talent management. Two criteria in particular, Leadership, and
Creating Shareholder Value separated the winners.
How do you think effective interaction between HR and finance department of a firm helps in achieving its skills?
Do you think that TCS has preferred the profit maximization approach over the wealth maximization approach?
Interaction between HR and finance functions
4
10
Goals of Financial management
6
2
A) The current price of an Ashok Leyland share is Rs. 30. The company is expected to pay a dividend of Rs. 2.50 per share which goes up annually at 6%. If an investor’s required rate of return is 11%, should he or she buy this share or not?
B) A bond with a face value of Rs. 100 provides an annual return of 8% and pays Rs. 125 at the time of maturity, which is 10 years from now. If the investor’s required rate of return is 12%, what should be the price of the bond?
A) Problem
B) Problem
5
5
10
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.
a) Trend of capital structure
PROGRAM
SEMESTER
SUBJECT CODE &
NAME
BK ID
CREDIT
MARKS
ASSIGNMENT
SUMMER 2014
MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
II
MB0045
FINANCIAL MANAGEMENT
B1628
4
60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q.No
Question
Marks
Total Marks
1
TCS has emerged as India's most admired company ahead of Hindustan Unilever, ITC, and
Infosys, says global management consultancy Hay Group. TCS replaced last year's winner group company Tata Steel by scoring highest on parameters such as corporate governance, financial soundness, and talent management. Two criteria in particular, Leadership, and
Creating Shareholder Value separated the winners.
How do you think effective interaction between HR and finance department of a firm helps in achieving its skills?
Do you think that TCS has preferred the profit maximization approach over the wealth maximization approach?
Interaction between HR and finance functions
4
10
Goals of Financial management
6
2
A) The current price of an Ashok Leyland share is Rs. 30. The company is expected to pay a dividend of Rs. 2.50 per share which goes up annually at 6%. If an investor’s required rate of return is 11%, should he or she buy this share or not?
B) A bond with a face value of Rs. 100 provides an annual return of 8% and pays Rs. 125 at the time of maturity, which is 10 years from now. If the investor’s required rate of return is 12%, what should be the price of the bond?
A) Problem
B) Problem
5
5
10
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.
a) Trend of capital structure