DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
Question Bank
Course code: - 304 Fin Subject: - Advanced Financial Management
UNIT I- Financial Planning and Shareholder value
Sr.no Question Type Questions Marks
MCQs
1. Financial Planning deals with:
(a) Preparation of Financial Statements
(b)Planning for a Capital Issue
(c) Preparing Budgets
1 REMEMBERING (d)All of the above. 2
2. Financial planning starts with the preparation of:
(a) Master Budget
(b) Cash Budget
(c) Balance Sheet
(d)None of the above
MCQs
1. Which of the following is not a part of Master Budget?
(a)Projected Balance Sheet
(b) Capital Expenditure Budget
(c)Operating Budgets
(d) Budget Manual.
2 REMEMBERING 2. Which of the following is not shown in Cash Budget? 2
(a)Proposed Issue of Capital
(b) Loan Repayment
(c) Interest on loan
(d) Depreciation.
State whether each of the following statements is True (T) or False(F)
1. Investment decisions and capital budgeting are same.
2. Capital budgeting decisions are long term decisions.
3 REMEMBERING 2
3. Capital budgeting decisions are reversible in nature.
Prof. Pappu Gaikwad www.dimr.edu.in
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
4 REMEMBERING What is Business Finance? 2
5 REMEMBERING What is Financial Management? 2
6 REMEMBERING Define Financial Management. 2
7 REMEMBERING What are the three decisions of finance function? 2
8 REMEMBERING What is another name of short-term investment decision? 2
9 REMEMBERING What is a dividend decision? 2
10 REMEMBERING What are the factors affecting the dividend decisions? 2
11 REMEMBERING What are the objectives of the financial management? 2
12 REMEMBERING What is Investment Decision? 2
13 REMEMBERING What is a Financing Decision? 2
14 REMEMBERING How finance is related with Economics? 2
15 REMEMBERING How Finance is related with Accounting? 2
16 REMEMBERING What is the relation of taxation and finance? 2
17 REMEMBERING What is Finance Function? 2
18 REMEMBERING State the functions of Finance manager? 2
Sound financial management is the key to the prosperity of the
1 UNDERSTANDING 5
business. Explain.
Explain in brief any three decisions involved in the financial
2 UNDERSTANDING 5
management.
3 UNDERSTANDING State the objectives of the financial management? 5
4 UNDERSTANDING Explain the importance of financial planning? 5
Explain briefly any five points of the role of financial
5 UNDERSTANDING 5
management.
Explain fully the concept of finance.
6 UNDERSTANDING 5
Bring out the importance of finance.
7 UNDERSTANDING 5
8 UNDERSTANDING Explain briefly the factors affecting the investments decisions? 5
9 UNDERSTANDING Explain the factors affecting the financing decisions. 5
10 UNDERSTANDING Write a short note on finance function. 5
11 UNDERSTANDING Explain the role of Finance Manager in Financial Management? 5
12 UNDERSTANDING Define Finance and how is it related to other allied disciplines? 5
Prof. Pappu Gaikwad www.dimr.edu.in
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
13 UNDERSTANDING Explain modern approaches to Financial Management. 5
Describe the finance functions as divided into three broad
1 APPLY 10
categories.
2 APPLY Describe modern approaches to financial management. 10
1 ANALYSE Briefly analyze the scope of the financial Management? 10
Explain the functions of finance Manager in detail & elaborate the
2 ANALYSE relationship of financial Management with other functional 10
disciplines.
‘The concept of finance function has changed and keeps on
1 EVALUATE changing along with the evolution of finance as a management 10
activity.’ Elaborate this statement.
‘Wealth maximization is better than profit maximization’ Do you
2 EVALUATE 10
agree? Justify your comment.
Prof. Pappu Gaikwad www.dimr.edu.in
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
UNIT II – Capital Structure and Firm value
Sr. Question
no Questions Marks
Type
MCQs
1. Deep Discount Bonds are issued at
(a)Face Value
(b)Maturity Value
(c)Premium to Face Value
REMEMBE
1 (d)Discount to Face Value. 2
RING
2. Which of the following is true for Net Income Approach?
(a) Higher Equity is better
(b) Higher Debt is better
(c) Debt Ratio is irrelevant
(d) None of the above.
MCQs
1. In case of Net Income Approach, the Cost of equity is:
(a) Constant,
(b) Increasing
(c) Decreasing
(d) None of the above.
REMEMBE
2 2. Which of the following is true of Net Income Approach? 2
RING
(a) VF = VE+VD
(b) VE = VF+VD
(c) VD = VF+VE
(d) VF = VE-VE
State whether each of the following statements is True (T) or False(F)
1. The NI approach, the ke is assumed to be same and constant.
2. The NI approach, the k0 falls as the degree of leverage is increased
REMEMBE
3 RING
2
Prof. Pappu Gaikwad www.dimr.edu.in
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
Prof. Pappu Gaikwad www.dimr.edu.in
