M.B.A. DEGREE EXAMINATION, NOVEMBER 2017
Health Service Management
CORPORATE FINANCE AND MANAGEMENT
ACCOUNTING
(2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What is time value of money?
2. What do you mean by single asset?
3. What is average rate of return?
4. What is dividend?
5. Define working capital.
6. What is inventory management?
7. What is derivative?
8. What is operating leverage?
9. What is bonus share?
10. What is net present value?
Sub. Code
16
CP-8316
2
Wk 10
Part B 5 25)
Answer all questions.
11. ''Liquidity and profitability and competing goals of
financial management''. Comment.
Or
Calculate the maturity value of an annuity if
Rs. 20,000 is paid annually for seven years at 12%
compounded annually.
12. What are the advantages and disadvantages of net
present value method?
Or
From the following details. Calculate pay back
period cost of the project Rs. 32,000. Scrap value
Rs. 3,200. Estimated savings I Years 4,000,
II year Rs. 6,000, III year Rs. 10,000, IV years
Rs. 10,000 V year Rs.8,000.
13. How is cost of capital is used in valuation?
Or
What are the factor that affect working capital?
14. Find out the operating leverage from the following
data
Rs.
EBIT (2015) 40,000 Sales (2015) 20000 units
EBIT (2016) 50,000 Sales (2016) 28000 units
Or
Explain the difference between hire purchase and
leasing.
CP-8316
3
Wk 10
15. What are the advantages and disadvantages of
debentures of a source of finance?
Or
What are the various source of finance for working
capital?
Part C 10 30)
Answer all questions.
16. Explain in detail time value of money.
Or
How will you do risk analysis in capital budgeting?
17. A choice is to be made between two competing
projects which require an equal investment of
Rs.50,000 and are expected to generate net cash
flow as under.
End of the year Project I Project II
1 25,000 10,000
2 15,000 12,000
3 10,000 18,000
4 Nil 25,000
5 12,000 8,000
6 6,000 4,000
The cost of capital is 10% using discounted cash
flow method, recommend which proposal is to be
preferred.
Or
Explain the procedure for inventory management
and its advantages.
CP-8316
4
Wk 10
18. What are the usefulness and limitation of financial
statements?
Or
What are the various sources of long term finance?
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