Do send your query at :
or call us at :08263069601
AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
Name : Marks : 80
Course : Masters in Business Administration (MBA 4 Sem)
Subject : : Financial Management
Answer the following question.
Q1. Why the companies prefer to raise money through debt not through equity? (10 marks)
Answer : Businesses and other entities can support their operations by issuing stock or borrowing money via loans or issuing notes. Unlike equity, debt has a fixed interest rate and a set of dates for paying interest and
Q2. Under which accounting standard , cash flow statement is prepared ? (10 marks)
Answer : The cash flow statement is covered by Accounting Standard 3. This accounting standard records information on an entity’s cash and cash equivalents within a certain time.
The cash flow statement, which shows cash flows from operating, investing, and financing activities over the course of an accounting period, contains this information.
Cash flow statement is one of the important financial statements prepared along with income statement and balance sheet. This
Q3. Why Capital budgeting decisions are more important (10 marks)
Answer : Capital Budgeting is used for decision making of the long term investment that whether the projects are fruitful for the business and will provide the required returns in the future years and it is important because capital expenditure requires huge amount of funds so before doing such
Q4. What is meant by Financial Planning? (10 marks)
Answer : Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.
If you take a closer look at the above examples, you’ll find that there is one factor that connects all of them: money. You need to have an
Q5. Why should you invest in shares? (10 marks)
Answer : Stocks can be a valuable part of your investment portfolio. Owning stocks in different companies can help you build your savings, protect your money from inflation and taxes, and maximize income from your investments. It’s important to know that there are risks when investing in the stock market. Like any investment, it helps to understand the risk/return relationship and your own tolerance
Q6. Define interest rate risk and investment risk. (10 marks)
Answer : What is interest rate risk?
Interest rate risk is the potential impact on companies or investors or investments from a change in interest rates levels
INTEREST RATE RISK FOR CORPORATE COMPANIES: FAST FACTS
For a company, interest rate risk represents
Q7. What Are Some Examples of Leadership or Management Options to Improve Financial Assets and Cash Flow (10 marks)
Answer : Financial management is critical for a company’s existence and success. In order to reach your business objectives, it entails planning, organising, managing, and monitoring your financial resources.
Good financial management will
Q8. What do you mean by yield to maturity (YTM) of a bond? Explain briefly.(10 marks)
Answer : The phrase yield-to-maturity, or YTM, is strongly associated with bonds. As a result, YTM is an important concept for debt mutual funds. The yearly return is given as YTM. It informs us what the total return on a bond will be if the investor holds it to maturity. A debt fund’s underlying assets are a variety of government and corporate bonds that the fund management selects to maintain in the portfolio.
Dear students, Get assignments and Case studies
Do send your query at :
or call us at :08263069601