1. State Gordon's basic valuation formula. How is it derived? What are the implications of Gordon's basic model?
2. State Franco Modigliani and Merton Miller (MM's) proposition I. Illustrate how the arbitrage mechanism works with the help of an example.
3. State Franco Modigliani and Merton Miller (MM's) proposition II. Show graphically the general implications of MM's proposition II.
4. What is the difference between the following approaches: (i) pure residual dividend policy approach, (ii) fixed dividend payout ratio approach, and (iii) smoothed residual dividend approach?
5. What are the implications of the Walter model?
6. Distinguish between the weighted average cost of capital and marginal cost of capital.
7. What is Capital Budgeting? Discuss the various factors that influence the capital budgeting decisions.
8. Examine the need for and importance of capital budgeting.
9. Limitations of Capital budgeting.
10. What are the various sources of working capital.
11. Write a brief on the various factors affecting working capital requirements of an organization.
12. Describe the concept of working Capital Management. What are the components of working capital?
13. Discuss in detail objectives of working capital.
14. Difference between permanent and temporary working capital.
15. Effect of Inadequate working capital.