JAYA COLLEGE OF ARTS AND SCIENCE

DEPARTMENT OF MANAGEMENT STUDIES AND PG COMMERCE

REVISION I

Class: II MBA Date:

Subject: Corporate Finance Max Marks: 075

Sub code: PMD02 Time: 3 Hours

PART A

Answer any ten questions: - (10 x 1 = 10 marks)

1. Define dividend
2. Explain the principles of corporate finance
3. What is meant by capital market? Distinguish it from money market
4. State the reasons for setting up the SEBI
5. What is liquidation?
6. What are the conditions for granting recognition of stock exchange?
7. Who is speculator?
8. Explain IPO
9. Write about BSE
10. What is business failure
11. What are securities?
12. List out the functions of IDBI

PART B

Answer any five questions: - (5 x 5 = 25marks)

13. What do you understand from corporate finance? Bring out its scope.
14. Briefly explain the Walter’s model of dividend calculation.
15. Explain the various guidelines issued by the SEBI towards the operation of venture capital?
16. Explain the importance of stock exchange.
17. Discuss about the powers of central government on SEBI?
18. Differentiate equity shares from preference shares
19. What are the assumptions of MM Approach?

PART C

Answer any four questions: - (Q.No 20th compulsory) (10 x 4 = 40 marks)

20. The following information is available in respect or rate of return on investment, the capitalisation rate and
EPS (Hypothetical limit)
R = 12%, Ke = 11%, E = 20
Determine the value of share as per Garden Model assuming the following:
Dividend payout ratio Retention ratio
A 10% 90%
B 20% 80%
C 30% 70%

21. What is capital market? Explain the recent trend in capital market.
22. Explain the role of financial institution.
23. Explain the various guidelines issued by SEBI towards the operation of primary market, secondary market and
issue of debenture.
24. What is venture capital? What are the stages involved in of venture capital financing?