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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2016 Examination
Assignment Marks: 30
Instructions:
 All Questions carry equal marks.
 All Questions are compulsory
 All answers to be explained in not more than 1000 words for question 1 and 2 and for
question 3 in not more than 500 words for each subsection. Use relevant examples,
illustrations as far as possible.
 All answers to be written individually. Discussion and group work is not advisable.
 Students are free to refer to any books/reference material/website/internet for attempting
their assignments, but are not allowed to copy the matter as it is from the source of
reference.
 Studentsshould writethe assignmentin their own words.Copying of assignmentsfromother
students is not allowed.

2. Question. 1. “Leverage being defined as the relationship between
two financial variables”. Why the study of leverages is an important
concept in finance? (10 marks)
Answer: Leverage beingdefined as the relationship between two financial variables, it plays most
importantrole infinance. There are somany reasons why we can say that the leverage study is one
of the most important concepts of finances and you need to be very careful about it while you do
any financial task in your company. Making financial decision requires certain amount of skills and
liabilitybutwhenyoutake the assistance of leveragethenitbecomesmuchmore efficient and easy
to handle.
Question. 2. You being the finance manager of AB Ltd. The
management is interested in CVP analysis which helps in
forecasting profits, in analyzing the changes in profit happens
because of changes in sales volume and cost. Discuss such CVP
techniques you will use to satisfy the management. (10 marks)
Answer: Finance alwaysrequiresanalysisandreporting. Also, this is the procedure that necessarily
requires professionalism and accuracy. When you are at the position of finance manager, you will
needtofollowcertainresponsibilitiesand you will need to fulfil the expectations of your company
by yourwork. AB Ltd needsyouto runa CVPanalysis because this analysis procedure will offer you
clear and most accurate forecast information on profits of the company. There are certain changes
that take place as the resultof CVPanalysis butthese changeswill be onthe figures of sales volume
and cost of your company.
Question. 3. a) Given the following as cash flow from a project,
calculate the NPV. The required rate of return is 9 %
year Cash flow
0 -150000
1 25000
2 35000
3 45000
4 45000
5 55000
Whether the company should accept the project or not ? (5 Marks)
Answer: Net Present

3. b) Given the following financial statement data, calculate the net
operating cycle.
Credit sales 250000
Cost of goods sold 200000
Accounts receivable 25000
Inventory closing balance 23000
Inventory opening balance 20000
Accounts payable 17000
Answer:
Days Sales Outstanding (DSO): 35.0
Days Payable Outstanding (DPO): 33.8
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601