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9833088336

FM Theory Question Bank

1 Mark Questions
a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s) t) u) v) w) What is GWC What is NWC What is Core Asset What is None Core Asset What is Operating Cycle What is Cash Cycle Define Receivable Management What is DSO? Define Ageing Schedule Explain Collection Matrix Speculative Motive What is Cash Budget Explain Luck Box System Divided Growth Model of Cost of Equity Define Cost of Capital What is WACC What is Optimum or Target Capital Structure Formula of Operating Leverage Formula of Financial Leverage Formula of ARR Formula of NPV Define Securitisation What is ECB (pg. 19) (pg. 19) (pg. 19) (pg. 19) (pg. 16) (pg. 16) (pg. 79) (pg. 84) (pg. 85) (pg. 85) (pg. 108) (pg. 107) (pg. 111) (pg. 144) (pg. 144) (pg. 149) (pg. 176) (pg. 193) (pg. 194) (pg. 233) (pg. 231) (pg. 337) (pg. 336)

5 Marks Question
a) Scope of Financial Management b) Functions of Financial Management Or Changing role of Finance Manager c) Objectives of Financial Management d) Factors determining Working Capital Requirement e) Risk/Return trade-off in Working Capital Management (pg. 3) (pg. 5) (pg. 5) (pg. 7) (pg. 17) (pg. 20)

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f) g) h) i) j) k) l) m) n) o) Five C of Credit/Traditional Credit Analysis State Options for Investing Surplus Cash Strategies of Cash Management Explain factors/determinants for capital structure planning Explain any two theory of Capital Structure Explain Short-term Sources Of Finance with Example Explain Long-term Sources Of Finance with Example Discuss the phases of Capital Budgeting Financial Implication of Business Restructuring Value of Control and value of Synergy (pg. 82) (pg. 112) (pg. 108) (pg. 176) (pg. 178) (pg. 313) (pg. 316) (pg. 228) (pg. 351) (pg. 349)

9833088336

Note: 2nd Edition, Himalaya Publication, Pawan Jhabak

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