Capital Investment and Financing Decisions PART 1 Very important Guess
(1) What is corporate restructuring? What motivates an enterprise to engage in restructuring exercise?
(2) Discuss various forms of mergers. What are the driving forces for mergers & acquisitions?
(3) Discuss various steps involved in a merger.
(4) What are the regulatory provisions in India regarding mergers and acquisitions?
(5) How would you assess merger as a source of value addition?
(6) What is the cost of a merger from the point of the acquiring company?
(7) How would you determine the present value of a merger from the point of view of the acquiring company?
(8) What is financial engineering? Do you feel financial engineers play an economic role in the society?
(9) Briefly discuss the financial engineering process that you will follow while developing new products or solutions.
(10) List down with examples any five variables that contribute new products development.
(11) Explain how fixed income securities are used to manage product price risk?
(12) Discuss innovation that took place in equity products and explain what they achieved?
(13) What is non-voting share? How is it useful to the company and investors?
(14) What is the use of derivatives? Is it an instrument designed for speculators or useful to others too?
(15) Explain any two derivative products and show the value addition in them.
(16) What are the factors which influence management’s dividend of a certain amount?
(17) Discuss the implications of making dividends tax free.
(18) “If it is all very well saying that I can sell shares that may mean selling at the bottom of the market. regular dividend, investors can avoid that risk” discuss?
(19) “Risky companies tend to have lower target pay out gradual adjustment rates” do you agree? Give reasons?
(20) What are the different pay out methods? How do these methods?
(21) Distinguish between bonus shares and share split.earnings per share, dividends, and market price?
(22)Do you agree with Walter’s dividend model ? Discuss its relevance and limitations.
(23)Examine the M.M’s irrelevance hypothesis. Critically evaluate its
assumptions.
(24) What is the informational content of dividends? Discuss its its influence on share value.
(25) How is lease finance different from that of equity or debt finance?
(26) In evaluating funding options, when do you chose lease finance?
(27) Is lease finance cheaper than other sources of finance? If so, under what conditions will it be cheaper than other sources of finance?
(28) Explain how Securitization is considered as a source of finance? Who are the typical investors for such papers?:
(29) Suppose you are working for a venture capital company. What are the things you will look into a proposal that comes to you for venture capital funding?
(30) Is it possible to get funds from venture capitalist for all kinds of projects? Explain.
(31) How is factoring different from that of traditional bill discounting scheme?
(32) Bring out the significance of term lending organisations in the financing of industries.
(33) What are the recent trends in the financing of industrial units? Are they going in healthy direction?
(34) Briefly highlight the procedures and norms followed by the FIs in extending credit. Can you suggest any modifications to the existing procedure?
(35) What is post sanction monitoring? How is monitoring exercised by FIs in India?
(36) Bring out the role of nominee-directors in the industrial units. Should we continue this practice?
(37)“Convertibility clause is a drag on the Financing facility provided by Indian Financial Institutions”. Comment.?
(38) Highlight the important recommendations of Narasimham Committee relating to DFI sector. Are you satisfied with the way government is implementing them?
(39) In the present day scenario, should there be restrictions on the form and type of assistance sanctioned by FIs in the country?
(40) Briefly discuss the soft loan scheme of IDBI.
(41) What do you mean by globalisation? Comment on the level of globalisation of Indian capital market?
(42) What are euro issues? Discuss some important instruments of euro currency.
(43) Discuss some of the major types of institutions that constitute the international financial system?
(44) What are the major global sources of financing? How far have Indian Corporates tapped these global sources?
(45) What are the characteristics of capital market? How is it different from money market?
(46) Explain the relationship between primary market and secondary market?
(47) Assess utility of equity shares as source of corporate financing.
(48) “Preference shares are known as ‘hybrid’ securities”. Comment.
(49) What is creditorship security? How is it different from ownership security?
