CS Professional Financial Treasury and Forex Management Important Topics

CS Professional Financial Treasury and Forex Management Important Topics

• Liquidity & Profitability are competing goals for a financial manager

• Effects of GST or Taxation on the Financial Planning of a company

• Failure of a firm is technical if it is unable to meet its current obligations.

• Economic Value Added concept is in conformity with the objective of Wealth Maximization

• Risk and Un-certainty are quite inherent in the Cap budgeting decisions.

• Dividend and growth are conflicting goals to each other.

• Cost of retained earnings

• ROCE Vs. ROE

• Financial Lease and Sale Lease Back

• While deciding the capital structure the firm has to consider the various life cycle stages

• Capital Rationing does not always lead to optimal results > Financial gearing is a double edge sword

• Reserve and surplus have no cost.Do you agree?

• Financial leverage is a fair weather friend.

• Methods of venture capital financing

• ‘Net income approach to capital structure’ and ‘net operating income approach to capital structure’.

• Bridge financing

• insolvency of a Corporate and Responsibility of a Finance manager

• Financing of cost escalation

• Higher financial leverage is better than higher operating leverage.

• Objective of Bonus Issue

• Depreciation is a source of internal finance.

• Describe the various sources of finance other than banks and equity for corporates.

• Factors affecting the dividend policy of a company.

• Limitations of dividend policy

• A stable dividend policy is always preferable to fluctuating dividend policy – comment

• Working Capital Cycle, ABC Analysis

• Concept of Operating Cycle

CS Professional Financial Treasury and Forex Management Important Topics

CS Professional Financial Treasury and Forex Management Important Topics

• Leveraged Lease

• Securitization of Financial Assets

• Factoring

• Depository system in India and its benefits

• Speculation is the prime reason for foreign exchange rate fluctuations

• ‘Net present value’ and ‘internal rate of return’.

• Define the following tools with respect to option derivatives : (a) Delta (b) Gamma (c) Theta (d) Vega

• Company Secretary as a forex manager > Factoring vs. bill discounting

• Note on credit rating

• Advantage Of mutual funds > Social Cost-benefit analysis > Banks should lend prudently and with care.

• “The investor’s behaviour criterion provides a framework for the analysis of risk-return choices” — Markowitz. Do you agree?

• Explain the concept of sensitivity analysis and Scenario analysis

• Economic rate of return

• Mark to market settlement

• Participants of derivative markets

•Interest rates parity

• Future vs. forwards

• Commodity vs. financial futures

• Treasury vs. financial management

• Zero-based budgeting

• Benefit of treasury management

• Risks in forex markets

• Current and capital account in balance of payment

• Spot and forward rates.

CS Professional Financial Treasury and Forex Management Important Topics

• Economic Value Added (EVA) concept is in conformity with the objective of wealth maximization. Comment

• The time value of money concept is needed to maximise wealth.

• Distinguish between ‘interest rate parity’ and ‘purchasing power parity’.

• How does capital asset pricing model (CAPM)help in estimating expected rate of return of a security?

• Financial management means the management of finances of a business organization in order to achieve financial objectives.Elaborate the financial objectives of a firm.

• What is a financial lease? How is it different from sale and leaseback?

• What factors are to be considered while deciding the financial and commercial viability of a project

• Describe briefly the different roles of treasury manager

• What is Mark-to-market process

• Treasury management has both macro and micro aspects.

• Write a note on domestic resource cost.

• Distinguish between ‘ask price’ and ‘bid price’ in foreign exchange.

• High return on investment (ROI) indicates the efficient use of assets. Comment.

• Working capital of a firm depends upon the length of its operating cycle. – Comment

• Dividend and growth are conflicting goals to each other.

• Speculation is the prime reason for foreign exchange rate fluctuations.

• Distinguish between the following : (a) ‘Capital structure’ and ‘financial structure’. (b) ‘Systematic risk’ and ‘unsystematic risk’. (c) ‘Net present value’ and ‘internal rate of return’. (d) ‘Commodity derivatives’ and ‘financial derivatives’.

• State the activities undertaken by merchant bankers.

• Differentiate between Commodity Futures Contracts and Commodity Options Contracts, Pyramid Shaped Capital Structure and Inverted Pyramid Shaped Capital Structure, spot rate and the forward rate of foreign exchange rate system.

• What do you understand by Pegging of currency and describe its various arrangements?

• Loan syndication is one of the project finance services. – Comment

• Distinguish between the following : (a) ‘Currency futures’ and ‘currency options’ in forex trading. (b) ‘Operating leverage’ and ‘financial leverage’.

• Capital rationing does not lead to optimum results. Discuss

• Sharpe ratio is a risk-adjusted measure of return to evaluate the performance of a portfolio. -Comment

• Explain ‘pecking order hypothesis’ relevant to capital structure planning.

• ‘Reverse stock split’ is generally an indication of financial difficulty. Elucidate.

• Venture capitalists prefer to invest in ‘entrepreneurial business’. Comment

• Distinguish between ‘capital market line (CML)’ and ‘security market line (SML)’.

• Insolvency of a corporate and Responsibility of a Finance manager

• Stable dividend policy is always preferable to fluctuating dividend policy – comment

CS Professional Financial Treasury and Forex Management Important Topics