1) Compare Pay Back period and Average Rate of Return Methods. Give explanation for your answer with appropriate example.
2) Write down the factors that usually affect long term funds requirements of a company. Describe the pros and cons of preference shares and public deposits as source of finance?
3) Describe the significance of cost of CAPITAL for investment decisions. How weighted average cost of capital is arrived at? Describe with the help of suitable example.
4) Describe the concept and significance of working capital? Write down different sources of W.C? Describe any two short term sources of W.C in detail.
5) ‘Dividend-Decision is an integral part of financing decision’ how? Also write down the factors that generally influence the dividend of a company.
6) What do you mean by Corporate Restructuring? Describe the reasons and possible merits of mergers and takeovers. Give explanation for your answer with practical examples, if any.