Monday 12 December 2016

Finance Management - Discuss how Working capital affects both the liquidity and profitability of a business

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Finance Management



1. A stock is expected to pay a dividend of Rs.0.75 at the end of the year. The required rate of return is ks = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?


2. Suppose you approach a bank for getting loan. And the bank offers to lend you Rs.1, 000,000 and you sign a bond paper. The bank asks you to issue a bond in their favor on the following terms required by the bank: Par Value = Rs 1,00,000 Maturity = 3 years Coupon Rate = 15% p.a, Security = Machinery You are required to calculate the cash flow of the bank which you will pay every month as well as the present value of this option.


3. How negatively correlated investments behave in a market?


4. Why does diversification reduce risk?


5. State the decisions involved in Financial management


6. What is meant by capital budgeting decision?


7. Discuss how Working capital affects both the liquidity and profitability of a business


8. What is meant by Working capital? How is it calculated? Explain the determinants of working capital requirement





Answer Sheet, Project Reports, Thesis Reports contact
ARAVIND – 09901366442 – 09902787224



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