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Financial Management
Answer the following question.
Q1. What is Merger>Is it harmful or
beneficial? Explain n Justify. (10
marks)
Q2. Why the companies prefer to raise
money through debt not through equity? (10 marks)
Q3. Hammad Inc. is considering two
alternative, mutually exclusive projects. Both projects require an initial
investment of Rs. 10,000 and are typical, average risk projects for the firm.
Project A has an expected life of 2 years with after tax cash inflow of Rs.
6,000 and Rs. 8,000 at the end of year 1 and 2, respectively. Project B has an
expected life of 4 years with after tax cash inflow of Rs. 4,000 at the end of
each of next 4 years. The firm’s cost of capital is 10 percent. If the projects
cannot be repeated, which project will be selected, and what is the net present
value? (10 marks)
Q4. Why company prefer debt on equity
to raise funds (10 marks)
Q5. What do you mean by floatation
cost? (10 marks)
Q6. Every Manager has to take three
major decisions while performing the finance function’ briefly explain them.
(10 marks)
Q7. What is the basic goal of a
business? (10 marks)
Q8. Compare and contrast the potential
liability of owners of proprietorships, partnerships (general partners), and corporations.
(10 marks)
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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