M.B.A. (FM) MANAGEMENT OF FUNDS

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M.B.A. (FM) DEGREE EXAMINATION, MAY 2018.
Third Semester

MANAGEMENT OF FUNDS

(2013-14 Academic Year and 2014 Calendar Year onwards)
Time : Three hours Maximum : 100 marks

SECTION A — (5 x 8 = 40 marks)
Answer any FIVE questions.

1. "Management of funds is interdisciplinary in nature" –Elucidate.

2. What are the factors to be considered for effective allocation of funds?

3. "Profit maximization is a goal of fund management" – Discuss.

4. Explain the significance of cost of capital.

5. Define leverage. Explain its types.

6. What are the different methods of venture capital financing?

7. Discuss the factors influencing foreign investment decisions.

8. Write a descriptive note on 'Foreign currency risk management'.

SECTION B — (4 × 15 = 60 marks)
Answer any FOUR questions.

9. Discuss the nature and significance of relationship between funds management and other functional areas of an enterprise.

10. Describe about the inflation effect on capital budgeting decisions.

11. What is meant by optimum capital structure? Explain the essentials of an optimum capital structure.

12. What are the different types of cost of capital?

13. Explain the followings :
(a) Global Depository Receipts (GDR)
(b) Americal Depository Receipts (ADR)
(c) Foreign currency Convertible Bonds (FCCB)

14. Explain the pros and cons of lease financing.

15. Enumerate the problems and prospects of financing Multinational Organisations.

                 
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