concept based questions on Business finance

.'S' Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its product as economic growth is about 7%-8% and the demand for steel is growing. it is planning to set a new steel plant to cash on the increasing demand it is facing. It will require about Rs. 5000crores to set up and about Rs. 500 crores of working capital to start the new plant.
Based on above case study here is a list of questions -
Q.What is the objective of financial management in this company?
(objective of financial management- wealth maximisation, profit maximisation, meeting financial commitment, efficient utilization of resources.)
Q.What are factors, which will affect capital structure of this company?
Q.What factors will affect the fixed capital of this company?
Q What factors will affect working capital of 's' ltd?
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Q. "Primary objective of financial management is to maximize shareholders wealth." Discuss.
Q."Length of production cycle affects the working capital requirement of an organisation" explain how?
Q.State why the working capital needs for a 'service industry' are different from that of a 'manufacturing industry'(CBSE2008)
Ans-service industry needs less working capital as they don't need any inventory , manufacturing overhead and usually no processing is required. whereas all these are needed in manufacturing industry.
Q.Delta cables earned a net profit of rs.50 crores. Atul, finance manager of Delta ltd wants to decide how to appropriate these profits. which financial decision will help him in deciding it?
Ans- Dividend decision.
Q. The size of assets, the profitability and competitiveness are affected by which decision?
Ans- Capital budgeting Decision.(Investment Decision)
Q.What is cost of raising funds called?
Ans- Floatation cost.
Q. Identify the decision taken in financial management related to acquire a new & modern plant to upgrade an old one.
Ans- Investment Decision
Q. A company wants to establish new machinery of worth Rs. 20 lake . Identify the type of decision involved in financial management?
investment decision