There are some new questions for SMU MBA Financial Management examination after questions of financial management.
1. Set A
a) Constant dividend per share
b) Constant percentage of net earnings
c) Small constant dividend per share plus extra dividend
d) Dividend as a fixed percentage of MPS
Set B
i) Constant dividend plus additional funds
ii) Certain percentage of the market price per share
iii) Policy of constant payout ratio
iv) Certain fixed amount per share
A) (a-iv) (b-ii) (c-iii) (d-i)
B) (a-iv) (b-iii) (c-i) (d-ii)
C) (a-ii) (b-iii) (c-iv) (d-i)
D) (a-iv) (b- i) (c-iii) (d-ii)
2. Set A
a) Horizontal merger
b) Vertical merger
c) Lateral merger
d) Conglomerate merger
e) Concentric merger
Set B
i) segments brought together to carry over specific mgmt. functions
ii) two or more firms producing unrelated products
iii) firms producing different products related in some way
iv) different stages of the production of the same product
v) producing same product or doing the same business
A) (a- i) (b-ii) (c-iii) (d-iv) (e-v)
B) (a-ii) (b-i) (c-iv) (d-iii) (e-v)
C) (a-v) (b-iv) (c-iii) (d-ii) (e-i)
D) (a-iii) (b-iv) (c-iv) (d-ii) (e-i)
3.2 + 2 = 5 is the phenomenon known as
A) Economies of scale
B) Reverse synergy
C) Synergy
D) Divesture
4. ——— represent the sale of a segment of a company to a third party
A) Restructuring
B) Divestiture
C) Diversification
D) Merger
5. When an existing parent company distribute on a pro rata basis the shares of the new company to the shareholders of the parent company free of cost.
A) Sell off
B) Spin off
C) Equity carve out
D) Bust ups
6. ESOP stands for
A) Employers’ stock option plan
B) Employees’ stock option plan
C) Employees’ share option plan
D) Equity stock option plan
7. Agreement which allows the bondholder to demand repayment of the amount in the event of hostile takeover
A) Poison pills
B) Poison out
C) White knights
D) Green mail
8. Arrange in sequence the steps of financial planning
i) Laying down the financial procedures
ii) Financial planning
iii) Formulation of financial policies
iv) Setting financial objectives
v) Determination of the form of securities to be issued
vi) Estimating the capital requirement
A) i, iv ,ii, iii, v, vi
B) vi, v, iv, iii, ii, i
C) vi, v, iv, iii, i, ii
D) iv, v, iii, ii, i, vi
9. ——– means the amount of capital employed or invested in a business.
A) Cost of capital
B) Capital structure
C) Equity capital
D) Capitalization
10. When the actual capitalization of a company is more than the proper capitalization?
A) Under capitalization
B) Excess capital
C) Over Capitalization
D) Inadequate capital
