Corporate Finance:NMIMS solved assignments April 2019: Contact us for answers at assignmentssolution@gmail.com

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NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for April 2019 Examination
Assignment Marks: 30

1. Miss Ninna is planning to open a boutique at link road. Her financial advisor says
that its essential to take care and manage well the working capital, as it ensures
smooth running of the operating cycle of business. However, there are various factors

which affects the working capital management. If you being the financial advisor of
Miss Ninna, discuss those factors in detail. (10 Marks)
2. Alpha limited is investing $500 million in a new project. The present values of the
future after tax cash flows resulting from the project is $750 million. The company
has 100 million shares outstanding, having market price of $45 per share. Assuming,
the project being independent of other expectations about the company, Calculate
the effect of -

·	The new project on the value of the company on the company’s stock. (10 Marks)

3. The data related to two companies A and B , are as under

A	B
Sales	500000	1000000
Variable cost	20% of sales	25% of sales
Fixed Cost	1.2 lacs	2 lacs
Interest	0.5 lacs	0.75lacs

i. Determine the operating and financial leverage (5 Marks)
ii. Determine the combined leverage for them. Also, comment on the relative risk
position of the companies (5 Marks)