Page 2 - Home Assignment 3

2. Write two factors affecting dividend decisions.

3 to 4 mark questions.
1. Explain any four importance of financial planning.
2. State the meaning of financial planning and explain its objectives.

5- 6 mark questions.
Q.1 Dividend decision is one of the most important decisions in financial
management, so every finance manager considers some factors at the time of

dividend declares to the shareholders. Therefore you suggest what are the main
factors to be considered while taking dividend decision by a finance manager of a
company?
Q.2 Somnath Ltd. is engaged in the business of export of garments, in the past its
performance of the company had been up to the expectations. In line with the
latest technology, the company decided to upgrade its machinery. For this, the
Finance Manager/ Dalmia estimated the amount of funds required and the

timings. This will help the company linking the investment and the financing
decisions on a continuous basis. Dalmia therefore began’. With the preparation
of a sales forecast for the next four years. He also collected the relevant data
about the profit estimates in the coming years. By doing this, he wanted to be
sure about the availability of funds from the internal sources of the business. For
the remaining funds he is trying to find out alternative sources from outside.
Identify the financial concept discussed in the above Para. Also state the
objectives to be achieved by the use of financial concept, so identified.