Professional Documents
Culture Documents
securities ? Explain.
25.What are the effects of bonus share issue on EPS and market price of a share ?
26.What do you mean by the shares repurchase ? What are the objectives of buy back of shares ?
27.Why is dividend policy important for a firm ? Also discuss the various determinants of a dividend
policy in a company ?
28.Discuss the Walters model and Gordons model in dividend policy.
29.Explain the relationship between earnings, cash flows and dividend payout.
30.Financial Manager can use dividend policy to maximize the wealth of the equity
shareholders. Explain
31.Stability of dividend payment has a marked bearing on the market price of a share of the firm.
Explain.
32.Differentiate between the cash and non-cash dividends from the point of view of paying
company.
33.The primary purpose for which a firm exists is the payment of dividend. Therefore, irrespective
of the firms needs and the desires of shareholders, a firm should follow a policy of very high
dividend pay out. Do you agree ?
34.What is hostile take over ?
35.What do you mean by amalgamation in the nature of Merger ?
36.What do you mean by Swap ratio /
37.What do you mean by Share Exchange ratio ? What are the different ways to calculate it /
38.What are the reasons and motives for merger ? Note down the defensive tactics against the merger
move.
39.What do you mean by business valuation ? What are the different ways of valuation of business ?
40.What is tender offer ? Explain the provisions relating to tender offer given in the new takeover
code.
41.How are the benefits of merger shared by the acquiring firm and the target firm ? Explain with the
suitable examples.
42.What do you mean by economic Value Added ? How is it useful in evaluation of the performance
of a firm ?
43.What are the different techniques of demergers ?
44.What kind of synergies exist in the Horizontal, Vertical and Conglomerate mergers ?
45.Buying out of a firm for merger is a type of investment decision. Do you agree ? Elucidate.
46.How merger propositions can be financed ? Evaluate the implication of the methods.
47.What is Spot Rate ?
48.what is Cross Rates ?
49.What is premium and discount ?
50.Differentiate between Direct quote and indirect quote.
51.Differentiate between ask price and bid price.
52.Differentiate between purchasing power parity and interest rate parity.
53.Explain forward rate and spot rate. How are they related ?
54.What do you mean by arbitrage profit ? How does it come into existence in foreign exchange
market ?
55.Do the forward markets lead to spot market or the vice versa ? Explain.
56.What do mean by an exchange rate ? What are the factors affecting foreign exchange rates ?
57.What is the swap point in foreign exchange ? How they help in finding out the forward rates ?
58.Explain the Fishers effect and the International Fisher Effect with reference to exchange rate
determination.
59.Explain and elucidate purchasing Power Parity Theorem with the help of examples.
60.What do you mean by covered interest arbitrage ?
61.Explain the relationship between exchange rates, interest rates and inflation rates.
62.Differentiate between Future hedge and option hedge.
63.Differentiate between Forward market hedge and Future hedge.
64.What do mean by Foreign Exchange Risk Management ?
65.What are the basic tools to manage the risk ?
66.How the money market hedge can be used to cover the foreign exchange risk ?
67.How the future contract and futures contract work ? Explain the mechanism.
68.Firms dealing in foreign exchange are exposed to different types of risk. Explain the exposures
and risk thereof.
69.What do you mean by currency swaps ? How it can be used to hedge exchange risk ?
70.What are the different methods of measuring the translation exposure ?
71.How the economic exposure is different from transaction exposure ? Explain with the help of
suitable examples.
72.Differentiate between translation exposure and transaction exposure. How can these be hedged ?
73.What do mean by hedging ? What is the basic principles of hedging ? What are different tools of
hedge transaction exposure ?
74.What is Political risk ?
75.What is Leading and lagging ?
76.What do you mean by International Financial Management ? what are its distinctive features ?
77.How the cash flows to a multinational firm are different from that of a domestic firm ?
78.What complexities are involved in multi national capital budgeting ? What are the approaches to
evaluate a foreign project ?
79.Differentiate between NPV and APV methods of capital budgeting. What are the different
approaches to find out the NPV of a foreign market ?
80.Should a foreign project be evaluated from the point of the parent firm ? If yes, how the cash
flows be adjusted ?
81.What is the relevance of exchange rates and changes in these rate in the international capital
budgeting ?
82.Explain the relationship between spot rat, forward rate and the discount rate with reference to
multinational capital budgeting.
83.Setting up of a plant overseas affects the export of the parent company. In the light of this
statement, examine the evaluation of a foreign project.
84.What do you mean by international working capital management ? What are its basic objectives ?
85.Explain the distinctive features of cash management in a multi national firm. What are the
techniques of cash management in these firms ?