File Details:

Questions:

1. Explain why the goal of profit maximization does not provide a useful criterion for measuring business success in financial management.
2. Critically examine how leverage can both increase risk and enhance returns on investment.
3. What is dividend policy? How is it determined? What factors influence a company's dividend policy?
4. Discuss the internal and external sources of financing working capital requirements.
5. What do you understand by management of receivables? Explain the factors affecting investment in receivables.
6. Elucidate why both over-capitalization and under-capitalization are undesirable, and why over-capitalization is more dangerous.
7. Prepare the income statement for Firms A, B, and C using financial leverage, interest, operating leverage, variable cost percentage, and tax rate data. Comment on the performance of each firm.
8. Compute the Economic Order Quantity and Total Inventory Cost for a pharmaceutical factory based on annual consumption, order cost, and carrying cost. Determine reorder point, maximum, and average inventory levels. Analyze whether a bulk discount offer should be accepted.
9. Using financial data from a manufacturing company, compute the operating cycle in days.