ISBM ANSWERSHEET HELP

Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Finance Management Answer the following question. Q1. Why does diversification reduce risk? (10 marks) Q2. State the decisions involved in Financial management (10 marks) Q3. Why are trend analysis and industry comparison important to financial ratio analysis? (10 marks) Q4. Determination of capital structure of a company is influenced by a number of factors’ explain six such factors. (10 marks) Q5. Every Manager has to take three major decisions while performing the finance function’ briefly explain them. (10 marks) Q6. Define the Diversifiable Risk and Market Risk and Causes of Risk. (10 marks) Q7. Briefly define the terms proprietorship, partnership, and corporation. (10 marks) Q8. Why the companies prefer to raise money through debt not through equity? (10 marks)...

Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 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 presen...