NMIMSGlobalAccess

SchoolforContinuingEducation(NGASCE)
Course:CorporateFinance
InternalAssignmentApplicableforJune2017Examination

AssignmentMarks:30

Instructions:

AllQuestionscarryequalmarks.
AllQuestionsarecompulsory
All answers to be explained in not more than 1000 words for question 1 and 2 and for
question 3 in not more than 500 words for each subsection. Use relevant examples,
illustrationsasfaraspossible.
Allanswerstobewrittenindividually.Discussionandgroupworkisnotadvisable.
Students are free to refer to any books/reference material/website/internet for
attempting their assignments, but are not allowed to copy the matter as it is from the
sourceofreference.

Studentsshouldwritetheassignmentintheirownwords.Copyingofassignmentsfrom
otherstudentsisnotallowed

Question 1
Mr. Grover wants to invest Rs 50lacs in order to expand his business. He explored three to
five options to invest in. Discuss-
Is there any significance of implementing capital budgeting.
Capital budgeting as a process. (10 Marks)

Question 2 (10 Marks)

In the financial market, shares and debentures are recognized as the long term sources of
finance. But there are certain points which define how different these instruments are.
Elaborate.

NMIMSGlobalAccess
SchoolforContinuingEducation(NGASCE)
Course:CorporateFinance
InternalAssignmentApplicableforJune2017Examination

Question 3
a) A company produces and sells 12500 units of Commodity X at Rs 50 each. The
variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000
per annum. Calculate the PV ratio and BEP if (5 Marks)
The selling price is reduced by 5 %.
Fixed cost is increased by 2 lacs

b) A fruit dealer sells 32000 boxes of strawberries during the year. The cost of placing
an order is Rs 50 and each box of strawberry costs Rs100. The cost of carrying the
inventories is 20%. You are required to find out the economic order quantity.
(5 Marks)

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