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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
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