FINANCIAL MANAGEMENT

1.    “The profit maximization is not an operationally feasible criteria.” Do you agree? Illustrate your views.

2.    “The function of Financial Management is to review and control decisions to commit or recommit funds to new or ongoing uses. Thus in addition to raising funds, financial Management is directly concerned with production, marketing and other functions within an enterprise whenever decisions are made about the acquisition or destruction of assets”. Elucidate.

3.    “When the corporate income taxes are assumed to exist Modigilani-Miller and the traditional theorists agree that capital structure does affect value. So the basic point of disputes disappears”. Do you agree? Why or why not?

4. “The contention that dividends have an impact on the share price.” Explain the essentials of this argument. Why the argument is considered fallacious.