IGNOU| FINANCIAL MANAGEMENT (MMPC - 014)| QUESTION PAPER – (DEC - 2022)| (MBA/ MBF)
MASTER OF BUSINESS
ADMINISTRATION/MASTER OF BUSINESS FINANCE (BANKING/FINANCE) (MBA/MBF)
Term-End Examination
December - 2022
MMPC-014
FINANCIAL MANAGEMENT
Time: 3 hours
Maximum Marks: 100
Note: Attempt any five questions. All questions carry
equal marks.
1. Discuss different types of Financial Decisions that are taken in an organisation.
2. What is the meaning of Investment Risk? Explain briefly
the various sources of risk in investments.
3. Explain the need for 'Valuation'. Describe the Three-Step
(EIC) Valuation Process.
4. What is 'Cost of Capital'? What are the basic
characteristics of 'Cost of Capital'? Discuss the different classes of Cost of
Capital.
5. What is 'Money Market'? What is its significance? Discuss
different participants in the Money Markets.
6. Why is Dividend decision important for a firm? Discuss
different forms of Dividends.
7. What is Financial Restructuring? Discuss 'Buy-back of
Shares' as a method of financial restructuring.
8. Cimbla Ltd. is considering investing in a project. The
expected original investment in the project will be 2,00,000, the life of the
project will be 5 years with no salvage value. The expected net cash inflows
after depreciation but before tax during the life of the project will be the
following:
|
Year |
1 |
2 |
3 |
4 |
5 |
|
Rs. |
85,000 |
1,00,000 |
80,000 |
80,000 |
40,000 |
The project will be depreciated at the rate of 20% on
original cost. The company is subjected to 30% tax rate.
Required:
(a) Calculate
Payback Period.
(b) Calculate
Net Present Value and Profitability Index, if cost of capital is 10%.
The P.V. factors at 10% are:
|
Year |
1 |
2 |
3 |
4 |
5 |
|
|
0.909 |
0.826 |
0.751 |
0.683 |
0.621 |
***
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