DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Third Semester
MANAGEMENT OF FUNDS
(2013-14 Academic year and 2014 Calendar year onwards)
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
1. What are the various sources of funds?
2. What is meant by weighted average cost of capital?
Explain its scope.
3. Face value of a 15% debentures is Rs. 1,000. The
maturity period of the debenture is 5 years. What is the
value of the debentures if the required rate of return in
15% 12%.
4. Explain the factors determining capital structure.
5. What are the types of leasing?
6. Find the indifference points of the following plans when
the corporate tax is 50%
Issue of 1,00,000 equity shares of Rs. 20 per share
Issue of 50,000 equity shares of Rs. 20 per share
and 10% Debentures of Rs. 10,00,000.
Issue of Rs. 50,000 equity shares of Rs. 20 each and
12% preference shares of Rs. 10,00,000.
Sub. Code
33
DE-3346
2
Ws2
7. Explain the importance of management of funds.
8. Briefly explain operating leverage.
PART B — 15 60 marks)
Answer any FOUR questions.
9. Discuss the functions of fund manager.
10. Describe the role of financial system in mobilising and
allocation of funds.
11. How is ARR on an investment determined? What are its
chief merits and demerits?
12. Discuss the current capital market conditions in India.
13. Enumerate the capital leases in India.
14. What are the merits of venture capital financing?
15. Write about foreign currency risk management.
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