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2011 Anna University Chennai M.B.A Finance Corporate finance Question paperCourse:

M.B.A M. B.A Finance University/board: Anna University Chennai Mba degree

examination november/december 2011corporate financepart A(10*2=20)1.what is debenture financing?2.how would you compute cost of equity?3.define'net working

capital'4.what is the role of cash in working capital management?5.what is a risk adjusted

discount method?6.what is an uneven cash flow?7. what purpose does simulation serve?8.what is thedifference between cash inadequacy and inslovency?9.discuss the need for corporategovernance?10.explain the salient observations of cadbury committee

part B-(5*16=80 marks)

11)a) what are the basic problems of industrial finance in India? how can these beaddressed?orB)when is a firm considered sick? what are the sources of finance for rehabilitating

a firm?12.a)write short notes oa)public depositsb)inter corporate investments.0rb)how is working

capital requirement assessed? what is the need for assessing working capitalrequirements?13)a)

i)write short notes on sensitivity analysis

M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2010ElectiveBA 9260CORPORATE FINANCE(Regulation 2009)Time : Three hoursMaximum : 100 Marks

Answer ALL questionsPART A(10 2 = 20 Marks)1. What is a Capital Market?2. What are the functions of EXIM Bank?3. Define the term Working Capital.4. Write a note on Inter Corporate Investments.5. What are the factors which are favourable for making investments inaneconomy?6. What steps should an investor follow to make an investment?7. What is sensitivity analysis?8. What is the need for dividend decisions in the organization?9. What do you mean by corporate disasters?10. Define stakeholders theory.PART B

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(5 16 = 80 Marks)11. (a) Elaborate on the role and the relevance of SEBI in thedevelopment andregulation of the securities market in India.Or

(b) Discuss the basic problems of industrial finance in India.12. (a) Discuss the role of commercial banks as financial intermediaries.Or(b) Describe the need and determinants of working capital in a large scalemanufacturing concern.13. (a) Explain the nature of business risk, interest rate risk and marketrisk.www.vidyarthiplus.com

Or(b) Evaluate sensitivity analysis as a method for assessing ri

sk.14. (a) The following data is available for Thermal Plastics Limited, acompanythat is not expected to pay dividend for a year :Stock price : Rs. 120Exercise price : Rs. 110Interest Rate : 0.14Time to expiration : 1.0Standard deviation : 0.4Whatis the value of the call option as per the Black-Scholes optionpricing model?Or(b) Discuss the relationship between the financing decision and dividenddecision in a firm.15. (a) Explain the key elements of organizational design and corporategovernance.Or(b) Discuss the importance of social responsibilities of present dayBusiness