M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
INFRASTRUCTURE FINANCE
2 90138 AB
Time 3 Hours Max. Marks 70
SECTION — A
Answer the following questions. 2 10 Marks)
1. Financial forecasting.
2. Cash credit.
3. Financial leverages.
4. Operating cycle.
5. Cost-volume profit.
SECTION — B
Answer the following questions. 10 50 Marks)
6. What is infrastructure finance? Explain its objectives.
Or
What are the duties of controller of capital issues?
7. Explain the various types of leverages.
Or
Bring out the net operating income approach of capital structure.
8. Bring out the operating cycle in infrastructure finance.
Or
How do you plan the working capital management for new projects? Explain.

9. What do you take the help of financial ratio analysis as a tool to measure the
performance of a company? Explain.
Or
Explain the financial analysis of a project and the aspects of inflation.
10. What are the various factors that are considered for dividend policy?
Or
Explain Walter's model of dividend policy in detail.
SECTION — C
(Compulsory) (10 Marks)
11. Case Study
A company has capital structure exclusively of ordinary shares of amounting to
Rs. 5,00,000 the company desires to raise additional funds of Rs. 5,00,000 for
financing its expansion programme. The company has four alternative financial
plans
To raise the entire amount by equity
To raise 50% equity and 50% at debt
To raise total amount by debt
To raise 50% equity and 50% by pref shares.
The existing EBIT is Rs. 60,000 Tax rate is 50% value of equity share is
Rs. 100 which financial plan would you recommend?