Financial Management

Important questions
Unit I

Define financial Management

What are the objectives of financial management?
Define Time Value of Money.
Define the term options.

Unit II

What is capital budgeting?

Define pay back period.
Define capital rationing.
Define cost of capital.

Unit III

What is trading on equity?

What are the elements of capital structure?
What is financial leverage?
What are the forms of dividend?
What is a share split?

Unit IV

What is working capital?

What is gross working capital?
What is commercial paper?
Define factoring?

Unit V

Distinguish between share and debentures.

What is bonus issue?
Define private equity.
Define leasing.

Part _B Questions
Unit I

 What are the scope of financial management and explain the financial decisions in detail.
What are the various methods of valuing the shares - explain.
Unit II
What are the different kinds of capital expenditure proposal and explain different
techniques of capital expenditure proposal?
How to compute cost of capital under weighted average method?
Unit III
What are the capital structure theories Explain
What are the determinants of capital structure?
Explain the methods of dividend policy and its determinants.
Unit IV
What are the factors determining working capital management?
Briefly explain the various techniques of inventory management.
Unit V
Briefly discuss about the long term sources of funds.
What is leasing and explain its impact in Indian financial system and differentiate it from
Hire purchase finance system.
Explain the capital market operations in India.