Managerial Economics - What Are the Various Method of Appraisal

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MANAGERIAL ECONOMICS

Section – A (Marks – 25)

Attempt all questions

1. How is Price Elasticity measured?

2. State and explain the ‘Law of variable proportions’

3. Define ‘Production Function’. Explain with diagram, the three stages of the Law of Variable Proportions.

4. Define production function. State and explain the ‘Law of Diminishing Marginal Returns’

5. What is ‘Cost benefit analyses? Justify its use in the implementation of developmental projects.

Section – B (Marks – 25)

Attempt all questions –

1. What is ‘Segmentation’? Explain Product segmentation
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4. Explain Merit and Demerit of Payback Period Method?

5. What is Working Capital? State the difference between gross working capital and net working capital.

Section – B (Marks – 25)

Attempt all questions –

1. Define current assets and Give four examples.

2. Explain the role of ‘Operational efficiency’ in the determination of working capital requirement.

3. Discuss how Working capital affects both the liquidity and profitability of a business.

4. Why Capital budgeting decisions are more important?

5. Explain briefly five factors determining the amount of fixed capital.

Section – C (Marks – 50)

Attempt any five questions –

1. Discuss how Working capital affects both the liquidity and profitability of a business. How does ‘Interest coverage ratio’ affects the capital structure?

2. ‘Determination of capital structure of a company is influenced by a number of factors’ explain six such factors. Discuss what collective bargaining is and explain its importance in industrial relations?

3. A company has 5,000 shares of Rs 100 each. It goes for capital restructuring and issues debentures for Rs 2,00,000 to buy back the shares. If the interest rate on debentures is 10% with no tax, find: (a) the leverage ratio after restructuring, and (b) EPS with an EBIT of Rs 1,20,000.

4. Find out the leverage ratio if the capital structure has Rs 4,00,000 equity and Rs 1,60,0 debt.

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