MGT201 Financial Management August 2010

1..Stock repurchase can benefit a firm in many ways. Explain how? 3 Marks
2..What is Keirestu which is a unique Japanese form of corporate organization? 3 Marks
3..Just In Time and Outsourcing are two important inventory control systems. Explain these two with the help of examples? 5 Marks
4..Suppose you are a financial manager of XYZ corporation and yopu have been assigned the task to calculate the numerical value of your firm's WACC (Weighted average Cost of Capital), what procedure you follow keeping in mind that the firm using NOI (Net Operating Income)? 5 Marks
5..Ali corporation has fixed operating cost Rs.3500 and variable operating cost Rs.8 per unit., while sale price is Rs. 10 per unit.
(a) You are required to calculate teh breakeven quantity?
(b) What happens to breakeven quantity if variable operating cost
reduces to Rs.6 per unit? 5 Marks