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December, 2012

MC0-07 : Financial Management

1.  (a) Explain the factors that influence working capital needs of a business unit.

(b) What is the purpose of holding inventories ? Explain brief the selective inventory control techniques.

2.  A company is considering an investment proposal to install a new machine at the cost of Rs. 1,50,000. The machine has a life of 10 yrs. and salvage value is Rs. 5,000. The tax rate is 40%. Assume the firm uses straight line method of depreciation.

June, 2013

MC0-07 : Financial Management

1. (a) What is financial management ? Explain the basic finance functions.

(b) In what ways the wealth maximisation objective is superior to profit maximisation objective ?

2. (a) Explain the concept of risk and return. What are the various statistical techniques available to measure risk ?