MMPC-014 · December 2024 · English
IGNOU MMPC-014 December 2024 Previous Year Question Paper
FINANCIAL MANAGEMENT
Structured previous year question paper for MMPC-014, December 2024 session.
Max marks: 100 · Questions: 9
Verified: 11 Sept 2026
MASTER OF BUSINESS
ADMINISTRATION/MASTER OF
BUSINESS FINANCE
(BANKING/FINANCE)
(MBA/MBF)
Term-End Examination
December, 2024
MMPC–14 : FINANCIAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Note : Attempt any five questions. All questions
carry equal marks.
Q1.What is the importance of financial decisions in a company ? Discuss the different financial decisions that are usually taken in a business.
Q2.What do you mean by ‘Risk’ ? Briefly discuss the different sources of risk in an investment.
Q3.What is the significance of Cost of Capital ?
Q4.Briefly discuss the different methods of computing the cost of equity capital. [ 2 ]
Q5.What is Money Market ? What i s its significance ? Discuss the main participants of money market.
Q6.Why do b usiness firms need to plan their capital structure ? Briefly explain the different determinants of capital structure.
Q7.Why do firms distribute dividends ? Discuss the different factors which impact the determination of dividend policies of a firm.
Q8.What is Buyback of Shares ? Why do companies consider this option ? Explain the provisions of the Companies Act, 2013 and SEBI Regulations with regard to Buyback of Shares.
Q9.A company is considering the following Investment Projects : Year Cashflows (in `) Project I Project II Project III 0 –1,00,000 – 1,00,000 – 1,00,000 1 75,000 20,000 1,00,000 2 75,000 40,000 30,000 3 10,000 20,000 30,000 There is no salvage v alue for any of the above projects. Rank the abo ve projects at discount rates of 10% and 15% according to Net [ 3 ] MMPC–14 Present Value Method. What are your recommendations ? Present Value Factor at 10% 15% Year 1 Year 2 Year 3 Year