1. George Thomas is waiting for recommendations from his partner Meenda on appropriate financing options for 5 potential clients. Meenda's telegram lists common stock, preferred stock, debt with warrants, convertible bonds, and callable debentures but does not match them to clients.
2. George reviews folders on each client which note their financing needs and characteristics. APT needs funding for growth, Sandford wants to retain control, Sharma Brothers seeks additional shareholders but not at a discount, Sacheetee wants to sell stock above market price, and Ranbaxy needs long-term funding without losing control.
3. George must determine which financing option matches each client's needs and situation before making calls to discuss the
This document contains an examination paper for the subject of Financial Management. It has three sections: Section A contains multiple choice and short answer objective questions; Section B contains two case studies for students to analyze and provide recommendations; Section C contains two applied theory questions requiring longer answers. The paper tests students' understanding of key concepts in financial management and their ability to evaluate scenarios and propose solutions regarding issues like capital structure, financing options, and working capital management.
- Marshall & Ilsley Corporation reported a net loss of $0.50 per share for Q2 2009, compared to a net loss of $1.52 per share in Q2 2008.
- It aggressively addressed problem loans by writing down credits and strengthening its balance sheet, including a $468M loan loss provision and boosting its allowance to loans ratio to 2.83%.
- Financial results were impacted by a $49.2M FDIC insurance assessment, $82.7M in securities gains, an $18M tax benefit, and $25M in dividends paid to the U.S. Treasury.
In late 2011, JPMorgan Chase told its Chief Investment Office (CIO) to reduce risky assets. To offset this, the CIO started making large derivative trades that grew in complexity and size over time, dwarfing the original risk. By April 2012, losses had started to accumulate from these trades, reaching an estimated $2 billion by May. By July, JPMorgan announced the loss had grown to $5.8 billion from trades involving credit default swaps made by trader Bruno Iksil, nicknamed the "London Whale". While Iksil was primarily responsible, lack of oversight from CIO head Ina Drew and senior management allowed the risky trading strategy and positions to grow unchecked.
JPMorgan Chase announced a $2 billion loss from trading financial derivatives in its Chief Investment Office in London. The losses occurred when traders placed large bets on credit default swap indexes to hedge previous positions, but the new bets introduced unaccounted risks and backfired. Regulators are investigating the trades and their implications for financial reform regulations around banks' trading and hedging activities. The losses also renewed debates around how much risk big banks should take.
This document is an examination paper that assesses knowledge of statistical quality control. It contains two sections. Section A has objective type multiple choice and short answer questions about concepts like defects, control charts, probability, and influential quality experts like Shewhart. Section B consists of two case studies for discussion. The first case discusses how an Indian textile company adapted its strategy, production, and markets over time. The second case discusses how American perceptions of Japanese quality pre-World War II were influenced by national priorities rather than inherent weaknesses, and how W. Edwards Deming helped transform Japan's approach to quality after the war.
This document contains an examination paper for the subject of Financial Management. It has three sections: Section A contains multiple choice and short answer objective questions; Section B contains two case studies for students to analyze and provide recommendations; Section C contains two applied theory questions requiring longer answers. The paper tests students' understanding of key concepts in financial management and their ability to evaluate scenarios and propose solutions regarding issues like capital structure, financing options, and working capital management.
- Marshall & Ilsley Corporation reported a net loss of $0.50 per share for Q2 2009, compared to a net loss of $1.52 per share in Q2 2008.
- It aggressively addressed problem loans by writing down credits and strengthening its balance sheet, including a $468M loan loss provision and boosting its allowance to loans ratio to 2.83%.
- Financial results were impacted by a $49.2M FDIC insurance assessment, $82.7M in securities gains, an $18M tax benefit, and $25M in dividends paid to the U.S. Treasury.
In late 2011, JPMorgan Chase told its Chief Investment Office (CIO) to reduce risky assets. To offset this, the CIO started making large derivative trades that grew in complexity and size over time, dwarfing the original risk. By April 2012, losses had started to accumulate from these trades, reaching an estimated $2 billion by May. By July, JPMorgan announced the loss had grown to $5.8 billion from trades involving credit default swaps made by trader Bruno Iksil, nicknamed the "London Whale". While Iksil was primarily responsible, lack of oversight from CIO head Ina Drew and senior management allowed the risky trading strategy and positions to grow unchecked.
JPMorgan Chase announced a $2 billion loss from trading financial derivatives in its Chief Investment Office in London. The losses occurred when traders placed large bets on credit default swap indexes to hedge previous positions, but the new bets introduced unaccounted risks and backfired. Regulators are investigating the trades and their implications for financial reform regulations around banks' trading and hedging activities. The losses also renewed debates around how much risk big banks should take.
This document is an examination paper that assesses knowledge of statistical quality control. It contains two sections. Section A has objective type multiple choice and short answer questions about concepts like defects, control charts, probability, and influential quality experts like Shewhart. Section B consists of two case studies for discussion. The first case discusses how an Indian textile company adapted its strategy, production, and markets over time. The second case discusses how American perceptions of Japanese quality pre-World War II were influenced by national priorities rather than inherent weaknesses, and how W. Edwards Deming helped transform Japan's approach to quality after the war.
Here are some recommendations for gathering market research to address the Sudkurier management team's questions:
1. Conduct a media usage survey of Sudkurier readers and non-readers to understand which other newspapers, magazines, radio stations, websites etc. they consume on a regular basis. This will identify the Sudkurier's main competitors.
2. Design and distribute a reader survey to collect demographic data on readers and understand which sections they find most/least interesting. Include questions about time spent reading different sections. Consider focus groups to get qualitative feedback.
3. Pilot test updated layout designs with readers and get feedback via surveys or focus groups. Assess comprehension, appeal and usability of different designs.
Xaviers institute of business management studies .case study answer sheets. m...NMIMS ASSIGNMENTS HELP
www.mbacasestudyanswers.com
www.casestudysolution.in
aravind.banakar@gmail.com
ARAVIND
09901366442 – 09902787224
CASE STUDY SOLUTIONS
CASE STUDY ANSWER SHEETS
CASE STUDY ANSWERS
CASE STUDY SOLUTION PAPERS
This document is an examination paper for a Project Management course. It consists of three sections:
1. Section A contains 10 multiple choice questions and 4 short answer questions testing core project management concepts like the project lifecycle, roles of a project manager, and quality attributes.
2. Section B contains 2 case studies related to defining project requirements and conducting a team building exercise. It asks students to analyze problems in the case studies and evaluate solutions.
3. Section C contains 2 long answer questions asking students to define and explain key project management topics - project planning process and project risk management techniques.
The examination paper comprehensively tests students' understanding of fundamental project management principles and their ability to apply those principles to
George Thomas is reviewing credit recommendations for 5 potential clients of Wishart & Associates investment banking firm. Meenda, a partner, visited the 5 clients and left notes on each. George reviews the notes:
1) APT needs $8M now and $4M in 4 years for machinery to increase profits. Good management with low debt.
2) Sandford needs $16M for machinery. Management wants to retain control.
3) Sharma Brothers needs $20M but can only raise $12M with debt. Seeks investors but not at a discount.
4) Sacheetee wants to sell stock at $21/share or use debt. Appeals to quick profit investors.
This document is an examination paper for a financial management course. It contains three sections: Section A has 10 multiple choice questions and 2 short answer questions worth a total of 30 marks. Section B contains 2 case studies worth 20 marks each. Section C has 2 long answer theory questions worth 15 marks each, for a total of 30 marks. The paper tests students' understanding of concepts like capital structure, working capital, cost of capital, and risk analysis through various question formats including multiple choice, short answer, case analysis, and long answer theory questions.
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
FIN 571 Effective Communication - snaptutorial.comdonaldzs14
This document provides instructions for an assignment to analyze a Fortune 500 company. Students are asked to:
1) Select a company from specified industries like retail, automotive, etc.
2) Calculate key financial ratios like current ratio, debt-equity ratio, profit margin using the company's annual report.
3) Analyze in 1,050 words why each ratio is important for financial decision making.
The purpose is to help students understand corporate financial reporting and ratios used to evaluate business performance. Detailed calculations and analysis must be submitted for the selected company.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Fin 571 Education Organization-snaptutorial.comrobertlesew11
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
FIN 571 Exceptional Education - snaptutorial.comDavisMurphyB2
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
Here are some recommendations for gathering market research to address the Sudkurier management team's questions:
1. Conduct a media usage survey of Sudkurier readers and non-readers to understand which other newspapers, magazines, radio stations, websites etc. they consume on a regular basis. This will identify the Sudkurier's main competitors.
2. Design and distribute a reader survey to collect demographic data on readers and understand which sections they find most/least interesting. Include questions about time spent reading different sections. Consider focus groups to get qualitative feedback.
3. Pilot test updated layout designs with readers and get feedback via surveys or focus groups. Assess comprehension, appeal and usability of different designs.
Xaviers institute of business management studies .case study answer sheets. m...NMIMS ASSIGNMENTS HELP
www.mbacasestudyanswers.com
www.casestudysolution.in
aravind.banakar@gmail.com
ARAVIND
09901366442 – 09902787224
CASE STUDY SOLUTIONS
CASE STUDY ANSWER SHEETS
CASE STUDY ANSWERS
CASE STUDY SOLUTION PAPERS
This document is an examination paper for a Project Management course. It consists of three sections:
1. Section A contains 10 multiple choice questions and 4 short answer questions testing core project management concepts like the project lifecycle, roles of a project manager, and quality attributes.
2. Section B contains 2 case studies related to defining project requirements and conducting a team building exercise. It asks students to analyze problems in the case studies and evaluate solutions.
3. Section C contains 2 long answer questions asking students to define and explain key project management topics - project planning process and project risk management techniques.
The examination paper comprehensively tests students' understanding of fundamental project management principles and their ability to apply those principles to
George Thomas is reviewing credit recommendations for 5 potential clients of Wishart & Associates investment banking firm. Meenda, a partner, visited the 5 clients and left notes on each. George reviews the notes:
1) APT needs $8M now and $4M in 4 years for machinery to increase profits. Good management with low debt.
2) Sandford needs $16M for machinery. Management wants to retain control.
3) Sharma Brothers needs $20M but can only raise $12M with debt. Seeks investors but not at a discount.
4) Sacheetee wants to sell stock at $21/share or use debt. Appeals to quick profit investors.
This document is an examination paper for a financial management course. It contains three sections: Section A has 10 multiple choice questions and 2 short answer questions worth a total of 30 marks. Section B contains 2 case studies worth 20 marks each. Section C has 2 long answer theory questions worth 15 marks each, for a total of 30 marks. The paper tests students' understanding of concepts like capital structure, working capital, cost of capital, and risk analysis through various question formats including multiple choice, short answer, case analysis, and long answer theory questions.
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
FIN 571 Effective Communication - snaptutorial.comdonaldzs14
This document provides instructions for an assignment to analyze a Fortune 500 company. Students are asked to:
1) Select a company from specified industries like retail, automotive, etc.
2) Calculate key financial ratios like current ratio, debt-equity ratio, profit margin using the company's annual report.
3) Analyze in 1,050 words why each ratio is important for financial decision making.
The purpose is to help students understand corporate financial reporting and ratios used to evaluate business performance. Detailed calculations and analysis must be submitted for the selected company.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Fin 571 Education Organization-snaptutorial.comrobertlesew11
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
FIN 571 Exceptional Education - snaptutorial.comDavisMurphyB2
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
Fin 571 Believe Possibilities / snaptutorial.comDavis17a
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
Fin 571 Enhance teaching / snaptutorial.comBaileya4
For more classes visit
www.snaptutorial.com
Assignment Steps
Resources: Yahoo Finance
Select a Fortune 500 Company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
• Mining
Access Yahoo Finance and enter the company
The concern for financing in a private limited company is on focus. Various pros and cons have been described to come into decision which way of financing is appropriate for the company. To avail the financing facilities, the company went ‘public’, that is, it became a public limited company from the existing private limited company. Company sold its shares to investors and collected money required. They also considered with the excess demands to utilize that as well.
In today’s global economy, many local businesses are beginning to expand beyond our country’s borders. View our International Banking & Tax Update presented by Richard Krucher, CPA of Insero & Company CPAs, P.C. and Grace Jahng of JPMorgan Chase & Co.
ECO315 Introduction to Money and BankingWEEK6 Homework (Financia.docxjack60216
ECO315 Introduction to Money and Banking
WEEK6 Homework (Financial Crisis)
Throughout the 2008 financial crisis, there are many examples related with the asymmetric information, the adverse problem, the moral hazard by the principal agent problem, and the conflicts of interest.
Find them related with following companies and financial programs:
· Investment Bank such as Lehman Brothers and Goldman Sachs
· Credit Rating Agency
· Subprime loans to collateral debt obligations (CDO)
· Credit default swaps (CDS)
· Fannie Mae and Freddie Mac (GSE)
· House prices and foreclosures
FINANCIAL MANAGEMENT
1. If a firm substitutes fixed for variable costs, which of the following will occur? A. The use of financial leverage will be increased.
B. The degree of operating leverage will be increased.
C. The break-even level of output will be reduced.
D. The profits will always be higher.
2. If investors want to limit financial risk and maximize their control of the business, which of the following
forms of business should they prefer?
A. Limited partnership
B. S corporation
C. Sole proprietorship
D. Corporation
3. A firm does not obtain financial leverage by
A. issuing preferred stock.
B. issuing common stock.
C. issuing bonds.
D. borrowing from the bank.
4. Unsuccessful use of financial leverage
A. increases earnings per share.
B. increases investors' rate of return.
C. decreases earnings per share.
D. decreases interest expense.
5. Which of these situations offers the best rationale for organizing a business as a limited partnership?
A. Management rejects the idea of personally assuming liability for the business.
B. You're an entrepreneur and you want two others' expertise, former business partners, to help execute your business plan.
C. Management needs to raise money through a stock offering, but does not want to relinquish control of the business to stockholders.
D. You want your small new business, which is operating out of your garage, to pay you and your partner (your spouse) dividends for which income tax will only be paid by you or your business, not both.
6. Which of the following is a correct statement about corporate losses?
A. They are carried forward three years and then carried back.
B. They are carried back three years and then carried forward.
C. They offset other sources of income in prior years.
D. They are carried forward to future years.
7. Break-even analysis requires knowing the relationship between
A. sales and total costs.
B. sales and earnings.
C. sales and assets.
D. total revenues and fixed costs.
8. If a firm produces 50,000 widgets and sells each unit for $20.50, what is the total revenue generated by
this production?
A. $1,025,000
B. $100,250
C. $10,250
D. $10,250,000
9. If Sam's Diner has an EBIT of $350,000, what are the diner's net earnings after paying $50,000 in
taxes and $34,000 in interest?
A. $266,000
B. $334,000
C. $311,000
D. $434,000
10. An increase of cost of capital will
A. decrease an invest ...
This document contains an examination paper for a finance management course. It consists of 3 sections - Section A contains 30 multiple choice and short answer questions, Section B contains 2 case studies with questions, and Section C contains 2 applied theory questions. The paper covers topics such as financial markets, international finance, risk management, and portfolio management.
http://finishedexams.com/homework_text.php?cat=3209
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
The document discusses the syndicated loan market and sponsored middle market deals in the second quarter of 2010. Key points include:
- Sponsored issuance increased significantly year-over-year due to more liquidity and improved projections, though growth slowed in June.
- Leverage multiples increased to 3.0-3.5x for senior debt and 4.5-5.0x for total debt. Pricing also increased from the first quarter.
- The majority of deals were sponsor-to-sponsor trades as sponsors focused on harvesting gains through dividend financings.
- Fifth Third Bank outlined its views on deal terms including leverage, pricing, fees and covenants for middle market transactions
This document provides background on a financially distressed manufacturing firm. The firm expanded significantly in recent years through acquisitions and new business lines, taking on substantial debt. Rising costs and underperformance of new ventures have led to declining profits and cash flow issues. The firm is technically insolvent, with over $24 million in senior debt, $9.5 million in unpaid trade debt, and equipment collateral worth $5 million against $7.5 million in loans. The chief lender wants to exit its credit within 120 days. As CRO, the author must develop a turnaround plan within 30 days to address the firm's financial crisis and multiple creditors.
1. Retail finance allows customers to purchase vehicles through financing provided by banks and non-banking financial companies. Over time, retail finance has grown significantly in India and financing options have expanded and become more accessible.
2. Historically, retail financing was difficult to obtain and interest rates were high. In the 1990s, private banks and auto manufacturers entered retail financing, making it faster and easier for customers. Retail finance penetration among new vehicle sales has now reached 60%.
3. Going forward, the retail finance process is expected to become fully digital and paperless within the next decade. Customer details will be directly extracted from ID documents, allowing instant online approvals and disbursements within an hour of
ACCT 3220
Fall 2013
Group Exercise #4
Sapienti Co. sells $400,000 of 12% bonds on June 1, 2014, the contract date. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2018. The bonds yield 10%. After the second interest payment, Sapienti buys back the bonds when the market interest rate is 8%.
Required:
1. Record the journal entry for the issuance of the bond.
2. Record the journal entry for the first interest payment.
3. Record the journal entry on December 31, 2014.
4. Record the journal entry for the second interest payment.
5. Record the journal entry for the buy back of the bonds.
1
Question: If inflation is anticipated to be 5 percent during the next year, while the real rate of interest for a one-year loan is 5 percent, then what should the nominal rate of interest be for a risk-free one-year loan?
A
5 percent
B
10 percent
C
25 percent
D
None of the above
2
Question: Which one of the following statements is not true?
A
The value of a dollar invested at a positive interest rate grows over time
B
The further in the future you receive a dollar, the less it is worth today
C
A dollar in hand today is worth more than a dollar to be received in the future
D
The further in the future you receive a dollar, the more it is worth today
3
Question: Efficiency ratio: Jet, Inc., has net sales of $712,478 and accounts receivables of $167,435. What are the firm's accounts receivables turnover and days' sales outstanding?
A
0.24 times; 78.5 days
B
4.26 times; 85.7 days
C
5.2 times; 61.3 days
D
None of the above
4
Question: If you have loaned capital to a firm, then you could be
A
A shareholder
B
A stakeholder
C
A partner
D
All of the above
5
Question: Which one of the following is not an advantage of using ROE as a goal?
A
ROE is highly correlated with shareholder wealth maximization
B
ROE and the DuPont analysis allow management to break down the performance and identify areas of strengths and weaknesses
C
ROE does not consider risk
D
All of the above are advantages of using ROE as a goal
6
Question: The future value of multiple cash flows is
A
Greater than the sum of the cash flows
B
Equal to the sum of all the cash flows
C
Less than the sum of the cash flows
D
None of the above
7
Question: The major players in the direct financial markets are
A
Investment banks
B
Money center banks
C
Regional banks
D
Both A and B
8
Question: One of the main services offered by investment banks to companies is
A
Helping companies sell new debt or equity issues in the security markets
B
Making loans to companies
C
Taking deposits from companies
D
All of the above
9
Question: Shane Matthews has invested in an investment that will pay him $6,200, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive? (Round to the nearest dollar.)
A
$27,150
B
$29,900
C
$30,455
D
$3.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
1. Examination Paper of Financial Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Subject Code-B-103 Examination Paper MM.100
Financial Management
Section A: Objective Type (30 marks)
This section consists of multiple choice & Short Notes.
Answer all the questions.
Part One carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple choices:
1. The approach focused mainly on the financial problems of corporate enterprise.
a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. Ignored routine problems
2. These are those shares, which can be redeemed or repaid to the holders after a lapse of the
stipulated period.
a. Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
3. This type of risk arises from changes in environmental regulations, zoning requirements, fees,
licenses and most frequently taxes.
a. Political risk
b. Domestic risk
c. International risk
d. Industry risk
4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment
proposal.
a. Future cost
b. Specific cost
c. Spot cost
d. Book cost
5. This concept is helpful in formulating a sound & economical capital structure for a firm.
a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None of the above
2. Examination Paper of Financial Management
IIBM Institute of Business Management 2
6. It is the minimum required rate of return needed to justify the use of capital.
a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
7. It arises when there is a conflict of interest among owners, debenture holders and the
management.
a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
8. Some guidelines on shares & debentures issued by the government that are very important for the
constitution of the capital structure are:
a. Legal requirement
b. Purpose of finance
c. Period of finance
d. Requirement of investors
9. It is that portion of an investments total risk that results from change in the financial integrity of
the investment.
a. Bull- bear market risk
b. Default risk
c. International risk
d. Liquidity risk
10. _____________ measure the systematic risk of a security that cannot be avoided through
diversification.
a. Beta
b. Gamma
c. Probability distribution
d. Alpha
Part Two:
1. What is Annuity kind of cash flow?
2. What do understand by Portfolio risk?
3. What do you understand by ‘Loan Amortization’?
4. What is the Difference between NPV and IRR?
END OF SECTION A
3. Examination Paper of Financial Management
IIBM Institute of Business Management 3
Section B: Case lets (40 marks)
This section consists of Case lets.
Answer all the questions.
Each Case let carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
This case provides the opportunity to match financing alternatives with the needs of different companies.
It allows the reader to demonstrate a familiarity with different types of securities. George Thomas was
finishing some weekend reports on a Friday afternoon in the downtown office of Wishart and Associates,
an investment-banking firm. Meenda, a partner in the firm, had not been in the New York office since
Monday. He was on a trip through Pennsylvania, visiting five potential clients, who were considering the
flotation of securities with the assistance of Wishart and Associates. Meenda had called the office on
Wednesday and told George's secretary that he would cable his recommendations on Friday afternoon.
George was waiting for the cable. George knew that Meenda would be recommending different types of
securities for each of the five clients to meet their individual needs. He also knew Meenda wanted him to
call each of the clients to consider the recommendations over the weekend. George was prepared to make
these calls as soon as the cable arrived. At 4:00 p.m. a secretary handed George the following telegram.
George Thomas, Wishart and Associates STOP Taking advantage of offer to go skiing in Poconos STOP
Recommendations as follows: (1) common stock, (2) preferred stock, (3) debt with warrants, (4)
convertible bonds, (5) callable debentures STOP. See you Wednesday STOP Meenda. As George picked
up the phone to make the first call, he suddenly realized that the potential clients were not matched with
the investment alternatives. In Meenda's office, George found folders on each of the five firms seeking
financing. In the front of each folder were some handwritten notes that Meenda had made on Monday
before he left. George read each of the notes in turn. APT, Inc needs $8 million now and $4 million in
four years. Packaging firm with high growth rate in tri-state area. Common stock trades over the counter.
Stock is depressed but should rise in year to 18 months. Willing to accept any type of security. Good
management. Expects moderate growth. New machinery should increase profits substantially. Recently
retired $7 million in debt. Has virtually no debt remaining except short-term obligations.
Sandford Enterprises
Needs $16 million. Crusty management. Stock price depressed but expected to improve. Excellent growth
and profits forecast in the next two year. Low debt-equity ratio, as the firm has record of retiring debt
prior to maturity. Retains bulk of earnings and pays low dividends. Management not interested in
surrendering voting control to outsiders. Money to be used to finance machinery for plumbing supplies.
Sharma Brothers., Inc.
Needs $20 million to expand cabinet and woodworking business. Started as family business but now has
1200 employees, $50 million in sales, and is traded over the counter. Seeks additional shareholder but not
willing to stock at discount. Cannot raise more than $12 million with straight debt. Fair management.
Good growth prospects. Very good earnings. Should spark investor's interest. Banks could be willing to
lend money for long-term needs.
Sacheetee Energy Systems
The firm is well respected by liberal investing community near Boston area. Sound growth company.
Stock selling for $16 per share. Management would like to sell common stock at $21 or more willing to
4. Examination Paper of Financial Management
IIBM Institute of Business Management 4
use debt to raise $ 28 million, but this is second choice. Financing gimmicks and chance to turn quick
profit on investment would appeal to those likely to invest in this company.
Ranbaxy Industry
Needs $25 million. Manufactures boat canvas covers and needs funds to expand operations. Needs long-
term money. Closely held ownership reluctant surrender control. Cannot issue debt without permission of
bondholders and First National Bank of Philadelphia. Relatively low debt-equity ratio. Relatively high
profits. Good prospects for growth Strong management with minor weaknesses in sales and promotion
areas. As George was looking over the folders, Meenda's secretary entered the office. George said, "Did
Meenda leave any other material here on Monday except for these notes?” She responded, "No, that's it,
but I think those notes should be useful. Meenda called early this morning and said that he verified the
facts in the folders. He also said that he learned nothing new on the trip and he sort of indicated that, he
had wasted his week, except of course, that he was invited to go skiing at the company lodge up there".
George pondered over the situation. He could always wait until next week, when he could be sure that he
had the right recommendations and some of the considerations that outlined each client's needs and
situation. If he could determine which firm matched each recommendation, he could still call the firms by
6:00 P.M. and meet the original deadline. George decided to return to his office and match each firm with
the appropriate financing.
Questions:
1. Which type of financing is appropriate to each firm?
2. What types of securities must be issued by a firm which is on the growing stage in order to meet
the financial requirements?
Case let 2
This case has been framed in order to test the skills in evaluating a credit request and reaching a correct
decision. Perluence International is large manufacturer of petroleum and rubber-based products used in a
variety of commercial applications in the fields of transportation, electronics, and heavy manufacturing.
In the northwestern United States, many of the Perluence products are marketed by a wholly-owned
subsidiary, Bajaj Electronics Company. Operating from a headquarters and warehouse facility in San
Antonio, Strand Electronics has 950 employees and handles a volume of $85 million in sales annually.
About $6 million of the sales represents items manufactured by Perluence. Gupta is the credit manager at
Bajaj electronics. He supervises five employees who handle credit application and collections on 4,600
accounts. The accounts range in size from $120 to $85,000. The firm sells on varied terms, with 2/10, net
30 mostly. Sales fluctuate seasonally and the average collection period tends to run 40 days. Bad-debt
losses are less than 0.6 per cent of sales. Gupta is evaluating a credit application from Booth Plastics, Inc.,
a wholesale supply dealer serving the oil industry. The company was founded in 1977 by Neck A. Booth
and has grown steadily since that time. Bajaj Electronics is not selling any products to Booth Plastics and
had no previous contact with Neck Booth. Bajaj Electronics purchased goods from Perluence
International under the same terms and conditions as Perluence used when it sold to independent
customers. Although Bajaj Electronics generally followed Perluence in setting its prices, the subsidiary
operated independently and could adjust price levels to meet its own marketing strategies. The Perluence's
cost-accounting department estimated a 24 per cent markup as the average for items sold to Pucca
Electronics. Bajaj Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that
these percentages would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket
expenses that were not considered in calculating the 17 per cent markup on its items. For example, the
contact with Booth Plastics had been made by James, the salesman who handled the Glaveston area.
5. Examination Paper of Financial Management
IIBM Institute of Business Management 5
James would receive a 3 per cent commission on all sales made Booth Plastics, a commission that would
be paid whether or not the receivable was collected. James would, of course, be willing to assist in
collecting any accounts that he had sold. In addition to the sales commission, the company would incur
variable costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming that
Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup on these
sales since the average markup was calculated on the basis of the customer taking the discount. If Neck
Booth did not take the discount, the markup would be slightly higher, as would the cost of financing the
receivable for the additional period of time. In addition to the potential profit from the account, Gupta was
concerned about his company's exposure. He knew that weak customers could become bad debts at any
time and therefore, required a vigorous collection effort whenever their accounts were overdue. His
department probably spent three times as much money and effort managing a marginal account as
compared to a strong account. He also figured that overdue and uncollected funds had to be financed by
Bajaj Electronics at a rate of 18 per cent. All in all, slow -paying or marginal accounts were very costly to
Bajaj Electronics. With these considerations in mind, Gupta began to review the credit application for
Booth Plastics.
Questions:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit?
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.
Section C: Applied Theory (30 marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should form the part of your answer (Word limit 200-250 words).
1. Honey Well Company is contemplating to liberalize its collection effort. Its present sales are Rs.
10 lakh, its average collection period is 30 days, its expected variable cost to sales ratio is 85 per
cent and its bad debt ratio is 5 per cent. The Company’s cost of capital is 10 per cent and tax are
is 40 per cent. He proposed liberalization in collection effort increase sales to Rs. 12 lakh
increases average collection period by 15 days, and increases the bad debt ratio to 7 percent.
Determine the change in net profit.
2. Explain the concept of working capital. What are the factors which influence the working capital?
S-2-301012
END OF SECTION B
END OF SECTION C