CAPITAL INVESTMENT AND FINANCING DECISIONS.

CAPITAL INVESTMENT AND FINANCING DECISIONS.

1. 1. What is meant by cost of capital ? How is cost of long term debt and preference share capital
   calculated ? Explain.
   2. What is meant by a firm's capital structure ? Explain the Modigilian - Miller (MM) theory and
   Traditional approach to capital structure of a firm.
   3. Explain the concept of project life cycle ? How are the work breakdown structure and linear
   responsibility chart prepared ?
   4. What is Project Risk ? Briefly explain the techniques used for the measurement of project
   risk.
   MS-42 1 P.T.O. 5. (a) What do you understand by Asset Securitisation ? Explain the process involved in asset securitisation and its advantages to the parties concerned.