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QUESTION BANK ON STRATEGIC FINANCIAL MANAGEMENT



STRATEGIC FINANCIAL MANAGEMENT
QUESTION BANK ON STRATEGIC FINANCIAL MANAGEMENT

MODULE I – STRATEGIC FINANCIAL MANAGEMENT
  1. Write short notes on Dividend Policy
  2. Briefly explain Walter’s model
  3. What do you understand by Residual theory of dividend ?
  4. How far do you agree that dividends are (i) relevant and (ii)  irrelevant for the value of the firm /
  5. Explain with suitable examples, the Walter model, its advantages and limitations.
  6. Explain the assumptions of MM model.  Give basic concept of MM model of dividend payment approach.
  7. “”Walter’s models and Gordon’s models are based upon the same assumptions.  Thus, there is no basic difference between the two.” Explain
  8. “”Present dividends are always preferred by the shareholders against the future capital profit”.  Explain with illustrations.
  9. Explain the arbitrage process of the MM model in support of dividend irrelevance.
  10. “”The underlying assumptions of the irrelevance theorem of MM model are its short comings” -  Critically examine this statement.’
  11. “”The arguments that dividends have an impact on the share price, has been characterized as the bird in brand argument”” – Examine.
  12. What is stability of dividend /
  13. What is clientele effect ?
  14. Briefly explain Lintner model
  15. What do you understand by Dividend and cash flow ?
  16.   Write short notes on Dividend Pay out ratio.  How it is determined ?
  17. Explain Stable Dividend Policy.  What is the significance of stability of dividend ?
  18. What are the types of stable dividend policies ?  Why the extra dividend need not be declared on a regular basis ?
  19.  What do you mean by optimal dividend policy ?  Explain.
  20. “”The primary purpose for which a firm exists is the payment of dividend.  Therefore, irrespective of the firm’s needs and the desires of the shareholders, a firm should follow a policy of very high dividend pay out.”” – Do you agree ?  Explain.
  21. Discuss the factors and conditions that are relevant in evolving a dividend policy as well as those relating to issue of bonus shares.
  22. “”Financial Management can use dividend policy to maximize the wealth position of equity share holders.””Explain in detail the above statement with reference to the determinants of dividend policy.
  23. What is “”international contents””  of dividend payment ?  Explain how does it affect share value /
  24. To what extent the firms able to establish a definite long run dividend policy ?  What factors would affect these policies ?  To what extent might these policies affect market value of a firm’s securities ?  Explain.
  25. What are the effects of bonus share issue on EPS and market price of a share ?
  26. What do you mean by the shares repurchase ?  What are the objectives of buy back of shares ?
  27. Why is dividend policy important for a firm ?  Also discuss the various determinants of a dividend policy in a company ?
  28. Discuss the Walter’s model and Gordon’s model in dividend policy.
  29. Explain the relationship between earnings, cash flows and dividend payout.
  30. “”Financial Manager can use dividend policy to maximize the wealth of the equity shareholders””.  Explain
  31. “Stability of dividend payment has a marked bearing on the market price of a share of the firm””.  Explain.
  32. Differentiate between  the cash and non-cash dividends from the point of view of paying company. 
  33. “”The primary purpose for which a firm exists is the payment of dividend.  Therefore, irrespective of the firm’s needs and the desires of shareholders, a firm should follow a policy of very high dividend pay out””.  Do you agree ?
  34. What is hostile take over ?
  35. What do you mean by amalgamation in the nature of Merger ?
  36. What do you mean by Swap ratio /
  37. What do you mean by Share Exchange ratio ?  What are the different ways to calculate it /
  38. What are the reasons and motives for merger ?  Note down the defensive tactics against the merger move.
  39. What do you mean by business valuation ?  What are the different ways of valuation of business ?
  40. What is tender offer ?  Explain the provisions relating to tender offer given in the “”new takeover code”.
  41. How are the benefits of merger shared by the acquiring firm and the target firm ?  Explain with the suitable examples.
  42. What do you mean by economic Value Added ?  How is it useful in evaluation of the performance of a firm ?
  43. What are the different techniques of demergers ?
  44. What kind of synergies exist in the Horizontal, Vertical and Conglomerate mergers ?
  45. “”Buying out of a firm for merger is a type of investment decision.”” Do you agree ?  Elucidate.
  46. How merger propositions can be financed ?  Evaluate the implication of the methods.   
  47. What is Spot Rate ? 
  48. what is Cross Rates ?
  49. What is premium and discount ?
  50. Differentiate between Direct quote and indirect quote.
  51. Differentiate between ask price and bid price.
  52. Differentiate between purchasing power parity and interest rate parity.
  53. Explain forward rate and spot rate.  How are they related ?
  54. What do you mean by arbitrage profit ?  How does it come into existence in foreign exchange market ?
  55. Do the forward markets lead to spot market or the vice versa ?  Explain.
  56. What do mean by an exchange rate ?  What are the factors affecting foreign exchange rates ?
  57. What is the swap point in foreign exchange ?  How they help in finding out the forward rates ?
  58. Explain the Fisher’s effect and the International Fisher Effect with reference to exchange rate determination.
  59. Explain and elucidate purchasing Power Parity Theorem with the help of examples.
  60. What do you mean by covered interest arbitrage ?
  61. Explain the relationship between exchange rates, interest rates and inflation rates.
  62. Differentiate between Future hedge and option hedge.
  63. Differentiate between Forward market hedge and Future hedge.
  64. What do mean by Foreign Exchange Risk Management ?
  65. What are the basic tools to manage the risk ?
  66. How the money market hedge can be used to cover the foreign exchange risk ?
  67. How the future contract and futures contract work ?  Explain the mechanism.
  68. Firms dealing in foreign exchange are exposed to different types of risk.  Explain the exposures and risk thereof.
  69. What do you mean by currency swaps ?  How it can be used to hedge exchange risk ?
  70. What are the different methods of measuring the translation exposure ?
  71. How the economic exposure is different from transaction exposure ?  Explain with the help of suitable examples.
  72. Differentiate between translation exposure and transaction exposure.  How can these be hedged ?
  73. What do mean by hedging ?  What is the basic principles of hedging ?  What are different tools of hedge transaction exposure ?
  74. What is Political risk ?
  75. What is Leading and lagging ?
  76. What do you mean by International Financial Management ?  what are its distinctive features ?
  77. How the cash flows to a multinational firm are different from that of a domestic firm ?
  78. What complexities are involved in multi national capital budgeting ?  What are the approaches to evaluate a foreign project ? 
  79. Differentiate between NPV and APV methods of capital budgeting.  What are the different approaches to find out the NPV of a foreign market ?
  80. Should a foreign project be evaluated from the point of the parent firm ?  If yes, how the cash flows be adjusted ?
  81. What is the relevance of exchange rates and changes in these rate in the international capital budgeting ?
  82. Explain the relationship between spot rat, forward rate and the discount rate with reference to multinational capital budgeting.
  83. “”Setting up of a plant overseas affects the export of the parent company””.  In the light of this statement, examine the evaluation of a foreign project.
  84. What do you mean by international working capital management ?  What are its basic objectives ?
  85. Explain the distinctive features of cash management in a multi national firm.  What are the techniques of cash management in these firms ?
  86. Write short notes on Global Depository Receipts
  87. Who are Foreign Institutional Investors ?
  88. What do you mean by Euro Convertible bonds ?
  89. What do you mean by Foreign Capital ?  What are the resources of raising foreign bonds ?
  90. What is Foreign Direct Investment ?  What  steps Government of India has taken to attract FDI ? 
  91. What is meant by Euro Issues ?  What securities are permitted under the RBI guidelines ?
  92. Differentiate FCCB and DR.
  93. Differentiate ADR and GDR.
  94. What do you mean by two way fungibility of ADR / GDR ?  What are the provisions announced by SEBI in this respect ?
  95. “”External Commercial Borrowing is an important source of foreign capital.””  How is it regulated in India ?
  96. How FIIs have been defined by SEBI regulations ?  How are their transactions regulated ?
  97. What are the recent Financial services ?
  98. What is special purpose vehicle ?
  99. Write short notes on NBFC and insurance sector.
  100. What is the structure of venture capital in India ?
  101. What is private equity ?
  102. Discuss the frame work of NBFCs under the RBI guidelines.  What are the Prudential Norms applicable to NBFCs ?
  103. What are the regulatory provisions relating to NBFCs in India ?  Give an account of deposit directions of RBi.
  104. How the RBI directions have ensured the interest rate and liquidity risk management by NBFCs ?
  105. What is a Merchant Banker ?  What are the categories as given in the SEBI regulations ?
  106. Give an account of the code of conduct for the merchant banker.
  107. What do you mean by Venture Capital financing, Venture capitalist and venture capital adventuring  ?
  108.   What are the exit rates available to venture capital ?
  109. What are the SEBI guidelines relating to Venture capital funds ?  Give the details of the tax aspects of Venture Capital.
  110. Define Portfolio Manager.  What are his responsibilities ?
  111. What code of conduct has been prescribed by SEBI for the portfolio managers ?
  112. What do you mean by credit rating ?  what are the benefits ?
  113. What are different agencies involved in the credit rating in India ?  What are the different areas in which credit rating is done by them ?
  114. What do you mean by Factoring ?  Given an account of the benefits and costs of factoring.
  115. What is Forfaiting ?  Explain the mechanism of Forfaiting.
  116. Explain with the help of  suitable example, the financial evaluation of factoring.  Is it always beneficial ?
  117. What is securitization ?  What are the parties involved in securitization ?  Give the modus operandi of securitization ?
  118. What is the legal aspects of securitization in India ?  Explain critically .
  119. What is meant by debt securitization ? 
  120. What is hedge funds ?  Explain its investment stragtegies.  How hedge funds are different from mutual funds ?
  121. Explain the concept of reverse mortgage.  How is it useful for senior citizens ?
  
 Tags:-QUESTION BANK ON STRATEGIC FINANCIAL MANAGEMENT,STRATEGIC FINANCIAL MANAGEMENT
Label:- QUESTION BANK ON STRATEGIC FINANCIAL MANAGEMENT,STRATEGIC FINANCIAL MANAGEMENT

Key Tricks for Communicating with Management


What should a project manager tell his or her management? How do we gain the cooperation of management on our projects? Real-world issues are need to be discussed and Tricks of the Trade are shared among attendees. Here are some recent Tricks of the Trade for this topic.
    * Ask what management wants to know about the project and when they want to know it, and then give it to them.
    * Check to make sure that management understands what you have sent them.
    * Never send a copy of a bar chart unless management knows exactly how it was created. Bar charts are useful project management tools, but turn non-team members off.
    * Be brief, be brilliant, and then be gone.
    * Be well-prepared for each encounter.
    * Before meeting with management, think about what you would want to know if you were in their shoes, and then provide it.
    * Make sure they hear it from you to avoid surprises.
    * Remember to communicate the results of meetings with management all the way down to the project team and other stakeholders.
    * Link meetings to milestones.
    * Have standard project reports that are created based on management and project managers’ input.
    * Do not delay bad news.
    * Always bring options and let management pick an option.
    * Ask stakeholders their opinion of the best way to communicate with management.
    * Keep the details of project status at a high level.
    * Keep communications consistent—provide the same reports at the same time.
    * Have a plan for when to escalate issues to your immediate boss’ supervisor.
    * Carefully create subject lines in all e-mails so management can quickly see if something is urgent and what the message is really about.
    * Do not forget that face-to-face meetings can be more effective under certain circumstances.
    * Use pictures, diagrams, or other visual aids to explain problems and issues whenever possible.
    * Use bullets and keep it short in all reports.
    * Have informal discussions to build rapport.
    * Constantly re-evaluate whether management trusts you, and then try to gain more trust.
    * Frequently ask what you could do to decrease meetings with management and what you could do to make them more comfortable about project progress.
    * Say “no” when it is appropriate.
    * Be able to prove that your numbers and other project information provided to management is correct.
    * Include management’s needs in the project communications plan.
    * Choose your battles.

Tricks of the Trade for Maximizing Your Relationship with Your Boss


Purdue University Management professors John Gabarro and John Kotter define managing your boss as “the process of consciously working with your superior to obtain the best possible results for you, your boss, and the company.”
Managing Your Boss is Important Because:
  • Research indicates that your relationship with your boss has a bigger impact on your attitude toward your job than anything else.
  • A poor relationship between you and your boss can have a negative effect on your performance and that of your team.

If managing your boss is so essential to your happiness and performance in your job, then what can you do to claim victory in this area?
Self-knowledge is vital for successfully working within an organization and for managing your boss because it provides an understanding of your strengths and areas for development. Knowing your areas for development helps you avoid situations and behavior that may be detrimental to you and your boss. When you know your strengths, you can use them to support your boss and the organization.
There are a number of ways to improve your self-knowledge. This includes the use of self score personality assessments such as the California Psychological Inventory™ (CPI™) instrument. The CPI 260™ assessment contains 260 carefully selected items that measure more than two dozen scales in five different areas, and suggests targets for further development in interpersonal behavior, social and personal values, cognitive needs and performance, and personal and work-related characteristics.
Self-knowledge can improve your relationship with your boss, but you also need to gain “boss-knowledge.” “Boss-knowledge” requires more than just showing up at work and collecting a paycheck. It takes your proactive effort to increase your “boss-knowledge” so you can understand what it is about you that facilitates or impedes working with your boss and how to take actions to make the relationship more effective.
Consider asking your boss questions to gain better insight into his or her motivation, perceptions, and needs. It can help you and your boss avoid unnecessary conflicts, misunderstandings, and problems.
Questions to Ask Your Boss:
  • What are your organizational and personal agendas?
  • How do you make decisions?
  • What is your source of power?
  • How do you view yourself?
  • How do you view other people?
  • What keeps you awake at night?
  • What is your preferred leadership style?
  • How do you best like to communicate—via e-mail, memos, face-to-face meetings, or telephone calls?
  • How do you best deal with conflict and negotiation?
Some terrific ideas for maximizing their relationship with their boss
  • Invite your manager to provide you with annual goals and objectives, and tell them about the areas where you need help to accomplish them.
  • Map a “road less traveled” path to lead your boss where you want him or her to be.
  • Manage your work so that your boss never has occasion to notice you until the project is successfully completed.
  • Most managers manage by exception. Don’t be an exception—stay “below the radar”.
  • Find out what makes your manager tick. Does he or she need verbal updates, e-mail, frequency or just issues?
  • Define your boss’ expectations and requirements by asking what he or she wants, and then provide it.
  • Make sure your boss understands the implications of your actions on his or her own.
  • Use honest, frequent communication to inform (not over-inform) and make your boss look good.
  • Solicit manager expectations in addition to the charter.
  • Ask questions and give options. When necessary, push back.
  • Tell your boss what you need from him or her in order to make you both successful.
  • Put yourself in his or her position.
  • Make sure your manager has the information his or her manager wants.
  • Make it easier for them to manage you.
  • Have a “can-do” attitude.
  • Keep your manager informed if an unknown might be headed their way.
Maximizing your relationship with your boss not only makes you a better project manager at work; it also helps you manage other aspects of your life and reduces stress for both you and your boss

list of customer care numbers-HelpLine

Airways
Indian Airlines – 1800 180 1407
Jet Airways – 1800 22 5522
SpiceJet – 1800 180 3333
Automobiles
Mahindra Scorpio – 1800 22 6006
Maruti – 1800 111 515
Tata Motors – 1800 22 5552
Windshield Experts – 1800 11 3636
Banks
ABN AMRO – 1800 11 2224
Canara Bank – 1800 44 6000
Citibank – 1800 44 2265
Corporatin Bank – 1800 443 555
Development Credit Bank – 1800 22 5769
HDFC Bank – 1800 227 227
ICICI Bank – 1800 333 499
ICICI Bank NRI – 1800 22 4848
IDBI Bank – 1800 11 6999
Indian Bank – 1800 425 1400
ING Vysya – 1800 44 9900
Kotak Mahindra Bank – 1800 22 6022
Lord Krishna Bank – 1800 11 2300
Punjab National Bank – 1800 122 222
State Bank of India – 1800 44 1955
Syndicate Bank – 1800 44 6655
Cell Phones
BenQ – 1800 22 08 08
Bird CellPhones – 1800 11 7700
Motorola MotoAssist – 1800 11 1211
Nokia – 3030 3838
Sony Ericsson – 3901 1111
Computers/IT
Adrenalin – 1800 444 445
AMD – 1800 425 6664
Apple Computers – 1800 444 683
Canon – 1800 333 366
Cisco Systems – 1800 221 777
Compaq – HP – 1800 444 999
Data One Broadband – 1800 424 1800
Dell – 1800 444 026
Epson – 1800 44 0011
eSys – 3970 0011
Genesis Tally Academy – 1800 444 888
HCL – 1800 180 8080
IBM – 1800 443 333
Lexmark – 1800 22 4477
Marshal’s Point – 1800 33 4488
Microsoft – 1800 111 100
Microsoft Virus Update – 1901 333 334
Seagate – 1800 180 1104
Symantec – 1800 44 5533
TVS Electronics – 1800 444 566
WeP Peripherals – 1800 44 6446
Wipro – 1800 333 312
xerox – 1800 180 1225
Zenith – 1800 222 004
Couriers/Packers & Movers
ABT Courier – 1800 44 8585
AFL Wizz – 1800 22 9696
Agarwal Packers & Movers – 1800 11 4321
Associated Packers P Ltd – 1800 21 4560
DHL – 1800 111 345
FedEx – 1800 22 6161
Goel Packers & Movers – 1800 11 3456
UPS – 1800 22 7171
Education
Edu Plus – 1800 444 000
Hindustan College – 1800 33 4438
NCERT – 1800 11 1265
Vellore Institute of Technology – 1800 441 555
Healthcare
Best on Health – 1800 11 8899
Dr Batras – 1800 11 6767
GlaxoSmithKline – 1800 22 8797
Johnson & Johnson – 1800 22 8111
Kaya Skin Clinic – 1800 22 5292
LifeCell – 1800 44 5323
Manmar Technologies – 1800 33 4420
Pfizer – 1800 442 442
Roche Accu-Chek – 1800 11 45 46
Rudraksha – 1800 21 4708
Varilux Lenses – 1800 44 8383
VLCC – 1800 33 1262
Home Appliances
Aiwa/Sony – 1800 11 1188
Anchor Switches – 1800 22 7979
Blue Star – 1800 22 2200
Bose Audio – 1800 11 2673
Bru Coffee Vending Machines – 1800 44 7171
Daikin Air Conditioners – 1800 444 222
DishTV – 1800 12 3474
Faber Chimneys – 1800 21 4595
Godrej – 1800 22 5511
Grundfos Pumps – 1800 33 4555
LG – 1901 180 9999
Philips – 1800 22 4422
Samsung – 1800 113 444
Sanyo – 1800 11 0101
Voltas – 1800 33 4546
WorldSpace Satellite Radio – 1800 44 5432
Hotel Reservations
GRT Grand – 1800 44 5500
InterContinental Hotels Group – 1800 111 000
Marriott – 1800 22 0044
Sarovar Park Plaza – 1800 111 222
Taj Holidays – 1800 111 825
Insurance
AMP Sanmar – 1800 44 2200
Aviva – 1800 33 2244
Bajaj Allianz – 1800 22 5858
Chola MS General Insurance – 1800 44 5544
HDFC Standard Life – 1800 227 227
LIC – 1800 33 4433
Max New York Life – 1800 33 5577
Royal Sundaram – 1800 33 8899
SBI Life Insurance – 1800 22 9090
Mattresses
Kurl-on – 1800 44 0404
Sleepwell – 1800 11 2266
Investments/Finance
CAMS – 1800 44 2267
Chola Mutual Fund – 1800 22 2300
Easy IPO’s – 3030 5757
Fidelity Investments – 1800 180 8000
Franklin Templeton Fund – 1800 425 4255
J M Morgan Stanley – 1800 22 0004
Kotak Mutual Fund – 1800 222 626
LIC Housing Finance – 1800 44 0005
SBI Mutual Fund – 1800 22 3040
Sharekhan – 1800 22 7500
Tata Mutual Fund – 1800 22 0101
Paints
Asian Paints Home Solutions – 1800 22 5678
Berger Paints Home Decor – 1800 33 8800
Teleshopping
Asian Sky Shop – 1800 22 1800
Jaipan Teleshoppe – 1800 11 5225
Tele Brands – 1800 11 8000
VMI Teleshopping – 1800 447 777
WWS Teleshopping – 1800 220 777
Travel
Club Mahindra Holidays – 1800 33 4539
Cox & Kings – 1800 22 1235
God TV Tours – 1800 442 777
Kerala Tourism – 1800 444 747
Kumarakom Lake Resort – 1800 44 5030
Raj Travels & Tours – 1800 22 9900
Sita Tours – 1800 111 911
SOTC Tours – 1800 22 3344
UPS
APC – 1800 44 4272
Numeric – 1800 44 3266
Others
Consumer Helpline – 1800 11 4000
L’Or?al, GARNIeR – 1800 223 000
KONE Elevator – 1800 444 666
Indane – 1800 44 51 15
Aavin – 1800 44 3300
Pedigree – 1800 11 2121
Kodak India – 1800 22 8877
Domino’s Pizza – 1800 111 123
World Vision India – 1800 444 550
Telecom Monitoring Cell – 1800 110 420


List of MNP helpline(All Networks) for mobile users of India

1.Airtel Tollfree No: 1800-103-1111

2.Idea Tollfree No: 1800-27-00000

3.Vodafone Tollfree No: 1800-1234567

4.DOCOMO Toll free No: 1800-266-0000
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