Financial Management

FULL NAME (BLOCK LETTER0

ENROLMENT NO.

Which of the following is not an element of financial management?

• Allocation of resources

• Financial Planning

• Financial Decision-making

• Financial control

The finance manager’s role is to:

• ensures that the funds are properly utilized

• maintains the financial health

• effective supervision of capital

• obtains capital assets of the organization

In the share market, the market value of any share is decided by:

• shareholders

• the government

• investment market

• the respective companies

In weighted average cost of capital, a company can affect its capital cost through –

1. Policy of capital structure

2. Policy of dividends

3. Policy of investment

• 1 only

• 2 & 3

• 1 & 3

• All 1, 2 & 3

Marginal cost –

• is the weighted average cost of new finance raised by the company.

• is the additional cost of capital when the company goes for further raising of finance.

• is the cost of raising an additional rupee of capital.

• All of the above

EBIT of NS Ltd. is ₹ 4,50,000.

Debt in capital structure = ₹ 6,00,000

Cost of debt (K_d) =10%

Cost of equity (K_e) = 12.5%

Ignore taxation.

Total market value of X Ltd. = ?

• ₹ 37,20,000

• ₹ 34,72,222

• ₹ 32,70,000

• ₹ 34,70,000

_____________ and utilization of funds are the finance function

• Acquisition

• Merger

• None

• Both

what will be the present value of Rs.40,00,000 receivable at the end of 3 years at an interest rate 7%

• 3004000

• 3040000

• 3004100

• None