Reg. No.

Name:
APJ ABDUL KALAMTECHNOLOGICAL UNIVERSITY
SECOND TRIMESTER MBA DEGREE EXAMINATION JANUARY 2017

MBA 25 :FINANCIAL MANAGEMENT 1

Max. Marks: 60 Duration: 3 Hours

Use ofStatistical Tables permitted

Part A
Answer all questions. Each question carries 2 marks

1. Explain Commercial Paper

2.
3.
4.
5. What is Capital rationing?

Why does money have time value?
How is cost of equity shares under CAPM model calculated?
Who are Angel investors?

(5x2 marks 10 marks)

Part B
Answer any 3 questions. Each question carries 10 marks

(a) Explain the various functions of the Financial Manager in a corporate concern

(b) Critically evaluate the goals of Profit Maximization and Wealth Maximization
Capital fonnation takes place in the primary market. How does it differ from the Secondary
Market?

(a) An investor has two options to choose from: (A) Rs. 6000 after one year; (B) Rs. 9000
after four years. As an investor, he will choose the option which will give him more returns.
Assuming a discount rate of (i) 10 percent and (ii) 20 percent, which alternative should he
opt for?

(0) 110085 the various sources of Long Tenn Finance and Shon Term Finance for a
corporate.

The rate of return (in percent) of ITC stock and the NSE index for 12 months period are
given below. Calculate Beta for the ITC stock.

Month ITC NSE index
1 -ಂ. 75 -0.35
2 5.45 -0.49
3 -3.05 -1.03
4 3.41 1.64
5 9.13 6.67
6 2.36 1.13
7 -0.42 0.72
8 5.51 84
9 6.80 4.05
10 2.60 1.21
11 -3.81 0.29
12 -1.91 -1.96

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