Paper of MGT201
Dated 13th February, 2011
Time at 2:00 p.m.

Total Time 2 hours
Total question 69

Total MCQz 62

Questions of 3 Marks
Question # 63:
Stock repurchase can benefits a firm in many ways explain how.

Question # 64:
Why it is recommended firms should keep borrowing capacity in reserve.

Question # 65:
What is Keiretsu which is a unique japans form of corporate organization?

Questions of 5 Marks

Question # 66:
Explain why financial planning is important to today’s Chief Executives.

Question # 67:
There are different methods to raise capital with the organization. Briefly explain the advantages of debt financing in to the business.

Question # 68:
A 100% equity (unlevered firm),
Total Assets of Rs. 20,000
WACC of unlevered firm is 31%
Cost of debt of unlevered firm is 20%
If
Then Adds Rs. 8,000 of debt levered firm of financial risk to 15%

Required:
Required cost of equity of levered firm
What will be the WACC of levered firm


Question # 69:
Differentiate forward market and future market.

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