Corporate Finance — DU B.A.(Prog.) with Commerce (Accounting and Finance) Previous Year Question Papers

To be filled by the Examination Branch. A. Define corporate finance and explain the modem approach to financial management. B. Discuss the roles and responsibilities of a finance manager in a modem corporate environment' C. What is the time value of money? Explain its signi{icance in corporate financial decisions. A. Explain the Net Present Value (NPV) and Intemal Rate of Retum llRR) methods of capital budgeting. B. Compare the advantages and limitations ofNPV and IRR in project evaluation' Or c. what is capital rationing? Explain how firms make capital budgeting decisions under capital rationing. D. Discuss uncertainty in capital budgeting and explain the certainty equivalent and risk-adjusted discount rate approaches. B, Discuss Net Income (NI) and Net Operating Income (NOI) theories of capital structure. Or c. Explain the meaning of financial leverage and operating leverage. Discuss how combined leve/age affects business risk. D. Explain the EBIT-EPS analysis and describe its relevance in capital structure planning valuation of a firm. A. Discuss Walter's and Gordon's dividend models. Explain how dividend decisions influence the B. Explain the dividend-irrelevance theory of Modigliani and Miller (MM) C. What is dividend policy? Discuss the major determinants of dividend policy in a corporation. D. Explain the residual dividend approach and its implications for financing decisions. B. Explain the basic strategies and techniques of cash management. C. Explain credit policies, credit terms, and collection policies in receivables management. D. Discuss objectives and techniques of inventory management in a corporate enterprise. Equivalent İ y (Risk-adjusted Discount Rate coUNt ni Pard rage 37 a Operating Leverage) 4 3720