MMPC-014 · December 2025 · English
IGNOU MMPC-014 December 2025 Previous Year Question Paper
FINANCIAL MANAGEMENT
Structured previous year question paper for MMPC-014, December 2025 session.
Max marks: 100 · Questions: 10
Verified: 11 Sept 2026
(BANKING AND FINANCE)
(MBA/MBF)
Term-End Examination
December, 2025
MMPC-014 : FINANCIAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Weightage : 70%
Note :
(i) Attempt any five questions.
(ii) All questions carry equal marks.
[ 2 ] MMPC–014
Q1.What is ‘Financial Management’ ? In what ways is the role of a Finance Manager different from that of an Accountant ?
Q2.“Systematic risk is non-diversifiable whereas non-systematic risk is diversifiable.” Discuss this statement with reference to financial management of a Multinational Company (MNC ). Also discuss in brief the causes of risk in an MNC.
Q3.Explain the features of an appropriate capital s tructure and discuss the determinants of capital structure of a firm. [ 3 ]
Q4.“Financial leverage is like a double -edged weapon; it can have both favourable as well as unfavourable impact on shareholders’ earning.” Explain by giving a suitable example.
Q5.What is ‘Behavioural Finance’ ? Discuss some of the biases that influence investment decisions of investors.
Q6.What is meant by ‘ Valuation of a firm’ ?
Q7.Discuss different approaches of business valuation.
Q8.What is meant by ‘ Relevance of Dividend’ ?
Q9.Discuss any two theories of relevance of dividend. [ 4 ]
Q10.With the help of the following data, compute the Weighted Average Cost of Capital using book value weights. Book value is in million rupees : Source Book Value After tax Cost Equity Shares (` 100 each) 100 14% 9% Cumulative Preference Shares 40 9% 11% Debentures 160 7.7% Retained Earnings 40 14%