The modern approach is an improvement over the traditional approach of financial management.Do you agree

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Finance Managementinfo_at_answersheets.in91
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• Finance Management
•  
• Q1.The modern approach is an improvement over
  the traditional approach of financial
  management.Do you agree?
•  
• Q2.A company has Rs.200000 as EBIT .It has
  Rs.1000000,10 debentures .The equity
  capitalization rate (Ke)of the company is
  12.5.Find out the value of the firm under Net
  Income Approach. Also prove the NI approach.
• Q3.A company earns Rs.5 per share it is
  capitalized at a rate of 10 and has a rate of
  return on investments of 16. According to
  Walters model what should be the price per share
  at 50 dividend pay out ratio? Is this the
  optimum pay out ratio according to Walter?
•  

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• Q4.The principal focus of finance is on
  decisions and actions which affect the value of
  the firm.How can financial management help to
  maximize it?
•  
• Q5.Sales Rs.2000000, Variable cost Rs.600000,
  Fixed costs Rs.100000, Interest Rs.5000
•  
• Q1.Using the concept of operating leverage, by
  what percentage will EBIT increase,if there is a
  10 increase in sales?
•  
• Q2.Using the concept of financial leverage, by
  what percentage will EBT increase,if there is a
  6 increase in EBIT?

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• Q3. Using the concept of combined leverage, by
  what percentage will EBT increase,if there is a
  6 increase in sales? earnings before interest
  and taxes (EBIT)
•  
• Q6.It is the capital expenditure decision that
  spells the difference between the business
  success and business failure.Do you agree with
  this statement? Substantiate your views with
  reasons.
•  
• Q7.X Ltd.,wishes to issue 1000 7 debentures of
  Rs.100 each for which the expenses of issue would
  be Rs.5 per debenture .Find out the cost of
  debenture capital.
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• Q7.Financial analysis requires an explicit
  consideration of the time value of
  money.Elaborate.
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