Question1) Answer all the questions:
i) What is risk? How do you differentiate systematic and unsystematic risk?
ii) Explain “Miller and Orr model” of cash management.
iii) Write down the features of money market.
iv) What are the conditions for redemption of redeemable preference share?
v) List the different types of dividend paid by companies.
Question2) What do you mean by “Financial Management”? Describe its importance in business management.
Question3) What is capital budgeting? Critically examine different methods of evaluation of capital budgeting proposals.
Question4) Explain dividend policy. Describe the factors that affect the dividend policy of a firm.
Question5) Answer all the questions:
i) Define the significance of international finance management.
ii) State the relationship between BOP and national economy.
iii) Distinguish “arbitration” and “speculation” in foreign exchange market.
iv) Briefly explain marginal cost of capital.
v) Write a brief note on JIT.
Question6) What do you mean by inventory control? Describe the various costs associated with inventory.
Question7) Explain cash management. Describe in detail the factors which determine the needs cash of a firm.
Question8) What is the significance of ratio analysis to management? Briefly describe any two ratios each for measuring:
i) Profitability
ii) Liquidity