1. What do you understand by Economic Appraisal of a project? Discuss the various aspects of economic appraisal and explain their significance.
2. What do you understand by Financial Reconstruction? How does it differ from reorganization of Capital? Discuss the steps involved in the formulation of Reconstruction Plan for a company.
3. List the various instruments through which corporate can procure finance and discuss the circumstances under which they are used to procure finance.
4. What is meant by cost of capital for a firm? What is its relevance in investment decision making? How is it calculated for different sources of capital?
5. What are the factors which influence dividend decisions? Explain Gordon’s model relating to dividend policy.