Ques 1.

"Investors exhibit three fundamental risk preference behaviours; risk aversion, risk indifference, and risk seeking." Considering the aforementioned assertion, meet with any two retail investors and examine their behaviour in terms of risk preference by comparing and differentiating their investing strategies.

Ques 2.

Why is cost of capital important for a firm? Discuss, with examples, different methods of computing Cost of Equity capital.

Ques 3.

What is Financial Leverage and why is it called ‘Trading on Equity’? Explain the effect of Financial Leverage on EPS with the help of an example

Ques 4.

In case of a normal Firm where, r=k, which type of Dividend Policy the firm should follow? Identify the above dividend policy model and explain the model in detail.

Ques 5.

What do you mean by ‘Corporate Restructuring’? Why do firms go for it? Discuss the different modes of Corporate Restructuring.