IESE Business School-University of Navarra 100 QUESTIONS ON FINANCE Introduction This paper contains 100 questions that students, alumni and other persons (judges, arbitrageurs, Suraj Metals are expected to declare a dividend of Rs. If the investor’s required rate of return is 12%, what should be the price of the bond? Ans: Wealth maximisation means maximising the net wealth of a company’s shareholders. What are the features of optimum credit policy? Determine EOQ, the total number of orders in a year and the time gap between two orders. On the other hand, profit maximisation is based on accounting profit and it also contains many subjective elements. Home / Financial Management assignment / Financial Management assignment Questions Answers. Q19. On StuDocu you find all the study guides, past exams and lecture notes for this course Wealth maximisation considers the time value of money. 110 in the market. Q5. 5 per share and the growth rate in dividends is expected to grow @ 10% p.a. Do you think the kind of relationship varies depending on the type of industry? Q33. What is the market price of the bond if YTM is also 15 %. Aggressive- In this a company operates with lower level of cash, inventory and trade receivables for a given level of sales. Shareholders, analysts and the media will usually find out about these, issues and therefore reduce the price they are prepared to pay for shares of this business. B) A bond with a face value of Rs. DOCX, PDF, TXT or read online from Scribd, 71% found this document useful, Mark this document as useful, 29% found this document not useful, Mark this document as not useful, Save Financial Management Assignment Questions For Later, Design an appropriate capital structure which yield more profitability for a service, Illustrate your answer with the help of EBIT-EPS analysis, a) As a financial consultant, will you advice your client to have term deposits in a, commercial bank which pay 8% interest compounded semi-annually or 8% interest, b) ´The finance manager should take account of the time value of money in order to, take a correct and objective financial decisionµ, omment upon the statement ´The goal of capital management is the maximization, of long-run earning to present shareholders, ommittee is to frame Guidelines for follow-, , which implies that the ultimate measure of a company's success is the extent to, which it enriches shareholders. Assessment Questions - Financial Management Minimum score to achieve this level: 'Y' for all mandatory (blue colouring, bold font') questions + 1 other answer 'Y' Level 1 - Pre-requisites; Are at least some financial management activities established within the organization, e.g. Financial Management Descriptive Model Question Papers. Q37. a.) Discover everything Scribd has to offer, including books and audiobooks from major publishers. financial-management-assignment-questions-and-answers-pdf 1/2 Downloaded from git.maxcamping.de on December 10, 2020 by guest [Book] Financial Management Assignment Questions And Answers Pdf [PDF] financial management assignment questions and answers pdf As recognized, adventure as skillfully as experience just about lesson, amusement, as skillfully as … should be compared to average/required increase in value, For a privately held company, the value of the firm after debt must be estimated using one ofÂ, This is often acknowledged as the "dawn" of the obsession with shareholder value. Q22. This question paper is divided into three sections: Section A – ALL 15 questions are compulsory and MUST be attempted The most common assignment covered by the students of finance course is FINA600: Financial Management Assessment. The following arguments are in support of the superiority of wealth maximisation over profit maximization. Jharkhand Mining ltd. has to select one of the two alternative projects whose particulars are furnished below: The company can arrange necessary funds @ 8 %. Explain about the doubling period and present value. Q26. If so, state the reason for such contradictions. The following data is available in respect of a company: Calculate the weighted average cost of funds taking market values as weights assuming tax rate as 40%, Hint: Use the equation WACC = We Ke + Wp Kp +Wr Kr + Wd Kd + Wt Kt, Q40. Both companies earn 20% before interest and taxes on their total assets of Rs. b) Companies with the shortest working capital cycles have current ratios much lower than the firms with longer cycles. The maturity period is 5 years. HPCL was established in 1952, operates from 500 different locations, including refineries, terminals, LPG plants, aviation service facilities, etc. Financial Management Assignment Questions Answers Posted on the 29 May 2020 by Jaxon Smith @jaxonsmith32. In the liberalised setup, society expects corporate to tap the capital markets effectively for their capital requirements. Wealth maximisation is possible only when the company pursues policies that would increase the market value of shares of the company. What is the price he should be willing to pay now to purchase the bond? The required rate of return is 8%. Required fields are marked *. Welch's, In March 2009, Welch criticized parts of the application of this concept, calling a focus on shareholder quarterly. Financial Management Assignment Questions with Answers for Finance Students. Examine the features & evaluation of decision-tree approaches. If the risk-free rate is 10%, compute NPV. It is the firm’s ability to use fixed financial charges to increase the effects of changes in EBIT on the EPS. Financial Management questions Please thoroughly answer those questions on answer sheet that I provide.Answer format is followed as ‘FM Final Assignment … Analyse the factors that affect the capital structure. Table -Sales and Costs Produced by XYZ Ltd. What is the length of the operating cycle? A firm can practice wealth maximisation goal only when it produces quality goods at low cost. Critically analyze the four broad areas of strategic financing decision. 30000 into his PF A/c at the end of each year for 20 years. What is the cost of equity capital to the company? Financial Management Assignment Questions - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Q23. This enhances consumer welfare and benefit to society. Financial management assignment: get help from best experts on all your assignment & functions relating to financial management at most affordable prices. Hint: use the formula K0 = [B/(B+S)]Kd + [S/(B+S)]Ke, Management Information System Assignments & Model Papers answers, Your email address will not be published. Though dividends are not contractual obligations, dividend on preference shares is a fixed charge and should be paid off before equity shareholders are paid any. expert academic writer, affordable and 100% plagiarism free work. We at Accounting Assignments Help provide Financial Management: Assignment Questions help with step by step calculation and explanation 24*7 from our finance experts. 1. b) Critically evaluate the role and content of each of the four main financial statements as sources of quantitative data, and their impact on business decision making. Hint Amount= 1534800. 6,000 for five years. Financial management assignment writing can be one difficult task for the students who are pursuing financial management degree as they find it lengthy and complex. An investment will have an initial outlay of Rs 100,000. Q25. Q39. Studying Financial Management at University? A bond of Rs. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. There is no record of Stock Splits and Buybacks by Henkel India in the past. Is there any contradiction in the results? What will be the number of Rs. Additional questions may … 75,000 when sales increase by 30 %. If the EPS is Rs.5, dividend pay-out ratio is 50%, the cost of equity is 20% and the growth rate in the ROI is 15%. ( 5marks), b.) Those which carry a fixed financial charge like debentures, bonds and preference shares and, Those which do not carry any fixed charges like equity shares. How do you think the operating cycle affects operating profit margins? What is the return at the end of the year on the basis of likely dividend and price per share? 40,000 p.a.  profit and share price gains "the dumbest idea in the world". Students looking for financial management homework help online can contact us anytime throughout the day and night. Explain its importance. What is the amount he will accumulate in his PF at the end of 20 years if the rate of interest given by PF authorities is 9%? Briefly discuss how the study of finance is essential to business today. a) How do you think the trend of capital structure across the Indian corporates affects the economy as a whole? Access study documents, get answers to your study questions, and connect with real tutors for BUS 5111 : Financial management at University Of The People. The risk premium is the consideration for the risk perceived by the investor in investing in that asset or security. The company requires a pre-tax return on investment of 20 %. Q48. What is finance? Assignment Task : learning outcomes: a) Apply the key theories and principles of financial management within varying contexts. What is the average cost of capital of both firms? You can get it within a day anywhere in the globe. All the question papers are prepared by our highly qualified and dedicated team of experts. 1000 after 2 years? What is the cost of new equity capital to Xavier Corporation? When a firm follows wealth maximisation goal, it achieves the maximisation of the market value of the share. a) Indicate whether the operating cycle in the following industries is short (less than 30 days), medium (less than 6 months) or long (more than 6 months), Steel, rice, vegetables, fruits, jewellery, processed food, furniture, mining, flowers and textiles. The size of the answer will be under 500 words, as sample pattern given in below first 3 answers. What are the goals of financial management? A bond whose par value is Rs. Discuss the sources of capital of a company. The major reason being that the company has weak operations and low margins. Conservative- In this company having huge balance of cash and holding higher level of inventory. 44,650 after five years to investors who deposit annually Rs. Therefore, to keep the investors happy throughout the performance of the value of shares in the market, the management of the company must meet the wealth maximisation criterion. With the implementation of the new online system, the total cost savings as a result of reduced man-hours amounts to about Rs 25 lakh per annum. An investment will have an initial outlay of Rs 100,000. 500 received annually for four years when the discounting factor is 10%. Discuss the dividend policy of Dabur India Ltd for the last three years. Formula used to solve the problem: Thus, in order to save $60,000 in five years, a sum of $904.99 would be required to be deposited each month. Q52. c) Investigate and evaluate the range of issues involved in the different types of funding. Both companies earn 20% before interest and taxes on their total assets of Rs. An employee of a bank deposits Rs. June 27, 2019 January 16, 2020 Questions Answers. 2. Explain the objectives of Cash Management. Financial Management Descriptive Model Question Papers with answers are available for MBA, BBA and other courses for various institutes. Are You Looking for MID Practice Test Financial Management Assignment Answers?Our Financial Writing Experts provide All Financial Statement Analysis Assignment Solutions in Worldwide at affordable price. Discuss Walter’s model assumptions in this context. Time value of money translates cash flows occurring at different periods into a comparable value at zero periods. Q38. TCS has emerged as India’s most admired company ahead of Hindustan Unilever, ITC, and Infosys says global management consultancy Hay Group. Q49. The capitalisation of a firm refers to the composition of its long –term funds debt and equity. 2.50 per share which goes up annually at 6%. Q11. Financial Management MCQ Questions and answers with easy and logical explanations. Answer All the Auestions. (Although the legal premise of a.  publicly traded company is that the executives are obligated to maximize the company's profit, imply that executives are legally obligated to maximize share, The concept of maximizing shareholder value is u, and other management actions which enrich t, acquisitions which are dilutive to shareholders, that. If an investor’s required rate of return is 11%, should he or she buy this share or not? A company earning more by the use of assets funded by fixed sources is said to be having favourable or positive leverage. What is Financial Accounting and What are the financial accounting assignment questions by admin There is no doubt in it that the demand for management courses is too high at present. Q50. Q6. Two companies are identical in all aspects except in the debt-equity profile. cost forecasting, expenditure budgeting, service cost management? If it does so, the total operating costs to perform the work, now done by the machine, will increase by Rs. Assuming a tax rate of 40%, and the cost of equity capital to be 22%, find out the value of the companies X and Y using the NOI approach? Q43. Financial Management (ACCA F9)_Pilot Exam_QUESTIONS_WUTBS PGSAF.docx Page 1 . It has been accepted by the finance managers as it overcomes the limitations of profit maximisation. Question: 1. a. Sandersen, Inc., sells minicomputers. Calculate the rate of interest implicit in this offer. ABC Ltd. provides the information as shown in table 6.21 regarding the cost, sales, interests and selling prices. Get free finance Assignment Samples from My Assignment Services – the leading assignment help provider in Australia. Do you need the answers of below descriptive (Subjective) Questions? Floatation costs for the sale of new equity shares would average about 10 % of the price of the shares. The term in this sense was introduced by, For a publicly traded company, Shareholder Value (SV) is the part of its capitalization that is, , this would roughly be the number of outstanding shares, augment shareholder value while issuing of shares (. Q44. With the help of case studies, students get real-life business experience and comprehend problems in the business clearly and … a) Analyse the dividend policies of the two companies for the last 10 years, b) Explain stock split and buyback of shares. Q16. Table 1.2 highlights the cash inflow for four years. 7 per share. The applicable rate of interest is 9% for deposits of less than 23 months and 10% for periods for more than 24 months. What is the price at which an investor would be willing to buy if his or her required rate of return is 15%? for 5 years? ( 5marks). PART II (FINANCIAL MANAGEMENT… Financial Management Descriptive Model Question Papers with answers are available for MBA, BBA and other courses for various institutes. Assuming a tax rate of 40% and the cost of equity capital to be 22%, find out the value of the companies X and Y using the NOI approach. Q10. Two criteria, in particular, Leadership, and Creating Shareholder Value separated the winners. 1000 value carries a coupon rate of 10% and has a maturity period of 6 years. Substantiate your arguments. Hence, the price after one year is expected to be Rs 550. Questions involving calculation stuff related to npv, irr, payback period are the most commonly asked questions. Q46. Compute the NPV and IRR of each project and comment on the results. Low cost answers with easy and logical explanations best experts on all assignment. Is not earning sufficiently to cover the cost of equity capital using CAPM we can conclude that the want... 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