Description
TUTOR MARKED ASSIGNMENT
COURSE CODE : BCOE – 143
COURSE TITLE : FUNDAMENTALS OF FINANCIAL MANAGEMENT .
ASSIGNMENT CODE: BCOE – 143/TMA/2026-27
ALL BLOCKS Note: Attempt all the questions. Maximum Marks: 100 Section – A (Attempt all the questions. Each question carries 10 marks.)
1. Explain the objectives of financial management. How does the goal of wealth maximisation differ from profit maximisation as a financial objective?
2. Discuss the Net Present Value (NPV) method for evaluating capital budgeting decisions. How does NPV differ from the Internal Rate of Return (IRR)? Explain with suitable examples.
3.What is the Capital Asset Pricing Model (CAPM)? Explain the concept of Arbitrage Pricing Theory (APT) and differentiate it from CAPM.
4.Explain the Modigliani-Miller (MM) hypothesis on dividend policy. Under what assumptions does dividend policy become irrelevant to the value of a firm?
5.Explain the different stages involved in the operating cycle. Distinguish between gross working capital and net working capital.
Section – B (Attempt all the questions. Each question carries 6 marks.)
6.Explain the concept of time value of money. Why is it important in financial decision making?
7. What is the Payback Period method? Explain its acceptance criteria and discuss its limitations as a capital budgeting technique.
8.Explain the various methods used for valuation of equity shares. How is the intrinsic value of a share determined?
9. Explain the concept of financial leverage and its impact on the earnings per share (EPS) of a firm.
10.Discuss the conditions under which a company cannot declare dividends. What legal and financial constraints govern dividend declaration?
Section – C (Attempt all the questions. Each question carries 10 marks.)
11.Write short notes on: a) Profitability Index as a capital budgeting method b) Factoring and Forfaiting as sources of working capital finance
12. Distinguish between: a) Net Income Approach and Net Operating Income Approach to capital structure b) Walter’s Model and Gordon’s Model of dividend policy
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