Ignou student zone_ISZ

  IMPORTANT QUESTIONS MCO 7 1.a) What are basic financial decisions? How do they involved risk return trade off? b) What role should the financial manager play in a modern organisation? 2. a) What is payback period method? Despite its weakness, it is a very popular method . What are advantage and disadvantage of the same. b) Distinguish between explicit cost and implicit cost? 3.a) What is optimum capital structure? Discuss.  b) Critically examine the net income and net operating income approach to capital structure decisions. 4   a) What are the main determinants of a dividend payout?  b) Why do firms follow a policy of stable dividend? 5. a) What is a operating cycle ? How is it important for the management of working capital? b) Explain the risk return trade off in working capital management? 6.  a) Explain the meaning of financial management ? Differentiate between investment decision and financing decision. b) Explain the basic financial functions of financ...

IMPORTANT QUESTIONS MCO7 1.a) What are basic financial decisions? How do they involved risk return trade off? b) What role should the financial manager play in a modern organisation? 2. a) Why do we use cash flow analysis instead of profit analysis in a capital budgeting decision? What are the general principles of cash flow estimation? b) What is the meaning of Cost of Capital? What is its significance in finance decision of a firm ? Explain different types of costs? 3. a) Explain the method of calculating present values of cash flows. b) Explain the concept of valuation of securities. Why is the valuation concept relevant for financial decision making purposes? 4. What are the different sources of long term finance? Explain them. 5. What is lease? How is it different from Hire Purchase? What are its advantages and limitations? 6. a) Explain the concept of 'risk' and 'return'. b) What is capital asset pricing model? Explain its...