ba7024 corporate finance

BA7024 Corporate Finance

VALLIAMMAI ENGINEERING COLLEGE

DEPARTMENT OF MANGEMENT STUDIES


UNIT-I

Part A (2 MARKS) 1. Define cost of capital? What is its significance? 2. What are the components of cost of capital? 3. What are the different types of debentures? 4. What are the different types of preference shares ? 5. Why do companies use debt capital? 6. What is a sick unit? 7. What are the different methods of export financing? 8. What are the functions of EXIM bank? 9. What are the functions of commercial banks? 10. List the Causes of sickness. 11. List Symptoms of sickness: 12. Write about EXIM Bank. 13. List the different operating groups of EXIM 14. List some international sources of finance? 15. List problems of industrial finance. 16. What is capital market? 17. Differentiate capital market and money market? 18. what are the Components of Capital markets 19. What is corporate finance? 20. What is industrial finance?

Part B(16 MARKS)

1. Discuss the role of SEBI in regulating Indian Capital Market 2. Discuss the role of commercial banks as financial intermediaries 3. Explain the role of BIFR in the Rehabilitation of sick units 4. Equity method of financing is more suited in the present scenario-Discuss 5. Discuss the procedure for rehabilitation of Sick Unit 6. Explain the role of EXIM Bank Financing of exports 7. Discuss the basic problems of Industrial finance in India

8. . What are the causes of Industrial sickness? List the symptoms which might indicate that sickness lies ahead

9. Discuss the role of Commercial bank as financial intermediaries

10 . What do you mean by share capital? Explain the different forms of share can a company issue?

Mrs. A.UmaDevi, Assistant Professor (OG) Department of Management Studies


UNIT-II

Part A (2 MARKS)

1. What is working capital? 2. What factors have an important bearing on working capital needs? 3. What are the sources of working capital? 4. What is net working capital? 5. What is a working capital cycle? 6. What is a commercial paper? 7. Write a note on public deposits? 8. Write a note on inter corporate investments? 9. Differentiate public & intercorporate deposits. 10. What do you understand by trade credit? 11. What is line of credit? 12. What are the methods to calculate working capital? 13. What are the approaches to maintenance of working capital? 14. What is trade credit? 15. Why is trade called spontaneous financing? 16. How are credit terms fixed? 17. How is MPBF calculated? 18. What is permanent and temporary working capital? 19. What is cash credit? How is different from loan 20. What is factoring?

Part B(16 MARKS) 1. Explain the advantages of various sources of short term finance to large scale industries. 2. Discuss the different methods of working capital financing 3.. Discuss how the cash requirements for working capital are estimated 4.Discuss the factors which exercise influence on the demand for working capital in a manufacturing concern 5. Discuss the role of Commercial bank in lending working capital finance . 6.What is a commercial paper? What are the features of commercial paper? 7. Discuss how public deposits are used as a source of finance. 8.Discuss about features of Intercorporate investments 9. What are the methods of forecasting working capital? 10. What are the approaches adopted by firms for arranging working capital ?



UNIT-III

Part A (2 MARKS) 1. Define the term ‘investment’ as it relates to securities investment? 2. What steps should an investor follow to make an investment? 3. What do you mean by risk-adjusted discount rate method? 4. Mention the mathematical models used in Risk Analyze in Capital Budgeting? 5. What do you mean by discounted cash flow? 6. What does sensitivity analysis mean? 7. What are the steps involved in sensitivity analysis? 8. What are the components of capital budgeting? 9. What are the factors which are favorable for making investments in an economy? 10. What is Probability distribution approach? 11. What is CE? 12. Differentiate RAD and CE. 13. Draw a decision tree. 14. Which is superior Sensitivity analysis or simulation analysis? 15. List the advantages of sensitivity analysis. 16. What are the disadvantages of sensitivity analysis? 17. Define risk. List the types of risk. 18. Describe the steps in decision tree approach 19. What are the disadvantages of decision tree approach? 20. What are the advantages of decision tree approach?

Part B(16 MARKS) 1. Explain the nature of business risk, interest rate risk and market risk 2. Explain the advantages of Decision tree approach in investment decisions 3. Explain the different methods of appraising investment proposals under risks and

Uncertainties. 4. Discuss the Probability Distribution method in investment decisions. 5. Explain the techniques of decision tree analysis 6. Evaluate sensitivity analysis as a method for assessing risk 7. 7. Discuss the various risks associated with the investment of funds 8. Explain the advantages and disadvantages of decision tree approach 9. Evaluate which project is best according to probability distribution method for assessing risk(

Problems) 10. Discuss RAD andCE approach



UNIT-IV

Part A (2 MARKS) 1. What is the need for dividend decisions in the organization? 2. Define dividend decision? 3. What are the objectives of ratio analysis? 4. What are the major solvency ratios? 5. Define cash inadequacy and cash insolvency? 6. Define dividend and state its nature? 7. Explain the different types of dividend policy? 8. What are the components of financing decision? 9. What are agency costs? 10. Give en example of agency cost? 11. What is option pricing? What are the various methods of pricing an option? 12. What is a call option? 13. What is a put option? 14. Write short note on Binomial model of option pricing? 15. What are the assumptions of Black Scholes option pricing model? 16. What is an investment decision? 17. What is financing decision? 18. How is investment decision interdependent on financing decision? 19. How is investment decision interdependent on dividend decision? 20. How is financing decision interdependent on dividend decision?

Part B (16 MARKS)

1. Discuss the relationship between the financing decision and investment decision in a firm 2. How agency costs play important role in financing 3. Explain the factors that determine the option pricing. 4. Discuss the factors which influence the dividend decision of a firm 5. Explain the underlying assumptions of the Black and Scholes option pricing model and why are they needed? Explain in detail Black Scholes option pricing model . 6. Discuss the factors which influence the dividend policy of a firm 7. Explain the relevance which is associated with the financing decision and investment in the organization 8. Discuss the various option pricing models. 9. Discuss the significance of simulation . How is the probability of insolvency calculated ? 10. Explain the relevance which is associated with the financing decision and dividend decision in the organization



UNIT-V

Part A (2 MARKS) 1. What is corporate governance? 2. What do you mean by corporate disasters and what are the reasons? 3. What is stakeholder’s theory? 4. What are the three views of stake holders? 5. Define corporate social responsibility 6. Give some examples of CSR. 7. Define corporate ethics. 8. Discuss managers and professionalism 9. List the principles of Corporate governance. 10. What isDisclosure And Transparency? 11. List The Areas Of CSR. 12. Write Short Note on corporate social responsibility of business towards consumers 13. Write Short Note on corporate social responsibility of business towards society 14. Write Short Note on corporate social responsibility of business towards employees. 15. What Is TheNeed For Business Ethics 16. What are unethical practices? 17. Whatis principles of business ethics 18. What are factors that affect business ethics ? 19. Write short note on managers and professionalism. 20. Write short note on managers and ethics.

Part B(16 MARKS) 1 Explain the Guidelines issued by SEBI towards Corporate Governance. 2. Explain Principles of Corporate Governance . 3.Define Corporate social Responsibility .List the areas of CSR . 4.Describe the role of social Responsibility of business Towards Consumers,t the towards Employees, Owners and Shareholders. 5. What is the need for Business ethics. Discuss the principles of Ethics. What are the factors affecting

business ethics. 6. List the causes of Business Disaster 7.Describe stakeholder theory 8. Is ethics necessary in business?Comment 9.Write short notes on the following:

i) Corporate disasters ii) Corporate ethics

iii) Managers and professionalism iv) Role played by SEBI in avoiding, corporate disasters, ethics ,and also describe CSR initiatives of

corporate world. 10. Describe the importance of CSR of present day business . Mrs. A.UmaDevi, Assistant Professor (OG) Department of Management Studies

ba7024 corporate finance

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