Vardhman Mahaveer Open University, question paper december 2010 Capital Investment and Financing Decisions

Vardhman Mahaveer Open University, question paper december 2010
Papers (A) (December) 2010
(411)
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MS-42
M.B.A. (Third Year)/PGDFM
EXAMINATION, December, 2010
CAPITAL INVESTMENT AND
FINANCING DECISIONS
Paper-MS-42
(Capital Investment and Financing Decisions)
Time allowed : Three hours
Maximum marks : 70
Attempt any five questions. All
questions carry equal marks.
1. Discuss the relative measures of rights issues and new
public issue as source of equity finance for an established
company.
2. Define the term Debenture. What are the different kinds
of debentures issued by the Indian Corporate ? Explain.
3. What are the points to be given importance in project
planning in the post-liberalization and globalization
scenario ? Discuss.
4. "Stability in payment of dividends has a marked bearing
on the market price of the shares of the corporate firm."
Explain the statement.
5. Explain the use of 'EBIT-EPS' analysis for designing capital
structure of a company.
6. What is the concept of financial risk ? What is the
relationship between leverage and the cost of capital ?
Explain.
7. Write a detailed note on the newer models of financing.
8. What is meant by 'Internal Rate of Return' of a project ?
How do you calculate IRR given the initial investment on
the project and the cash flows arising during the expected
life of the project ?
9. Write short notes on (any two) :
(i) Book building
(ii) Bonus issue
(iii) Arbitrage process
(iv) Commercial paper

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