Introduction to Financial Management
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Questions and Answers

What is the course code for Financial Management?

22MBA121

Who is the faculty in charge of the Financial Management course?

Dr. K. Sudarsan

Which of the following are Course Educational Objectives (CEO)? (Select all that apply)

  • Elucidate the importance of market analysis
  • Explain EBIT-EPS Analysis (correct)
  • Provide knowledge on working capital management (correct)
  • Discuss dividend theories (correct)
  • What are the two types of maximization goals mentioned?

    <p>Profit Maximization and Wealth Maximization</p> Signup and view all the answers

    What does WACC stand for?

    <p>Weighted Average Cost of Capital</p> Signup and view all the answers

    Capital structure decision includes factors influencing capital structure.

    <p>True</p> Signup and view all the answers

    Which of the following is one of the investment evaluation techniques?

    <p>Discounted Payback Period</p> Signup and view all the answers

    Name one theory of dividend policy.

    <p>Walter's model</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>EBIT = Earnings Before Interest and Taxes NPV = Net Present Value IRR = Internal Rate of Return ARR = Average Rate of Return</p> Signup and view all the answers

    The main purpose of the Financial Management course is to provide knowledge about the __________.

    <p>importance and applications of financial management</p> Signup and view all the answers

    Study Notes

    Financial Management Course Code

    • Course code is not provided in the text.

    Financial Management Faculty

    • The faculty in charge is not provided in the text.

    Course Educational Objectives (CEOs)

    • CEOs are not provided in the text.

    Maximization Goals

    • Profit maximization
    • Shareholder wealth maximization

    ### WACC

    • Weighted Average Cost of Capital

    Capital Structure Decision

    • Includes factors influencing capital structure.

    Investment Evaluation Technique

    • Net Present Value (NPV)
    • Payback Period
    • Internal Rate of Return (IRR)
    • Profitability Index (PI)

    Dividend Policy Theory

    • Modigliani-Miller Theorem
    • Residual Dividend Theory

    Financial Management Course Purpose

    • To provide knowledge about financial decision making in a business context.

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    Description

    This quiz explores the core concepts of financial management, including profit maximization and the trade-off between risk and return. It also discusses the role of the Chief Financial Officer (CFO) and their critical functions in decision-making for businesses. Test your understanding of these essential principles in financial management.

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