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Questions:

1. Profit maximization is the basic goal of a finance manager. Explain.
2. What do you mean by optimal capital structure?
3. Differentiate between redeemable and irredeemable debentures.
4. Explain reorder point.
5. What is meant by interim dividend?
6. Undercapitalization leads to overcapitalization. Do you agree with this statement?
7. What is meant by uncertainty? Explain the different types of uncertainty.
8. What are consequences of excess and inadequate working capital?
9. What is the role of finance function in an industrial enterprise? Explain the functions of a financial manager.
10. Explain the Walter's dividend model. Discuss its assumptions and limitations.