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 the difference between cash inadequacy and inslovency?9.discuss the need for corporate governance?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 be addressed?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 2010 Elective BA 9260 CORPORATE FINANCE (Regulation 2009) Time : Three hours Maximum : 100 Marks Answer ALL questions PART A (10 2 = 20 Marks) 1. What is a Capit al 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 in an economy? 6. What steps should an investor follo w 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 stake holders theory. PART B

(5 16 = 80 Marks) 11. (a) Elaborate on the role and the relevance of SEBI in the development and regulation 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 interme diaries. Or (b) Describe the need and determinants of working capital in a large scale manufacturing concern. 13. (a) Explain the nature of business risk, interest rate risk and market risk. 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, a company that is not expected to pay dividend for a year : Stock price : Rs. 120 Exercise price : Rs. 110 Interest Rate : 0.14 Time to expiration : 1.0 Standard deviation : 0.4 What is the value of the call option as per the Black Scholes option pricing model? Or (b) Discuss the relationship between the financing decision and dividend decision in a firm. 15. (a) Explain the key elements of organizational design and corporate governan ce. Or (b) Discuss the importance of social responsibilities of present day Business