MMPC-014 · June 2022 · English
IGNOU MMPC-014 June 2022 Previous Year Question Paper
FINANCIAL MANAGEMENT
Structured previous year question paper for MMPC-014, June 2022 session.
Max marks: 100 · Questions: 11
Verified: 11 Sept 2026
MASTER OF BUSINESS
ADMINISTRATION/MASTER OF
BUSINESS FINANCE
(BANKING/FINANCE) (MBA/MBF)
Term-End Examination
June, 2022
MMPC-014 : FINANCIAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Note :
(i) Attempt any five questions.
(ii) All questions carry equal marks.
Q1.Explain the nature of Finance Function and discuss the approaches of Finan cial Management. [ 2 ]
Q2.Explain the concept of ‘Future ‘Value ’ and describe how it is calculated . Bring out the difference between Future Value and Present Value.
Q3.What is the need for Valuation ? What is the genesis of it ? Explain the v arious ways in which term value can be defined.
Q4.Why is Cost of Equity Capi tal difficult to measure ? Discuss the different methods of computing Cost of Equity Capital.
Q5.Discuss Equity Capital and Debt Capital as sources of long -term capital bringing out the advantages and disadvantages of each source.
Q6.What is the meaning of ‘Behavioural Finance’ ?
Q7.Discuss any five biases that influence investment decisions of an investor.
Q8.Explain the concept of Capital Structure.
Q9.Discuss the various determinants of a capital structure.
Q10.Aravind Motors Ltd. is considering two mutually exclusive projects. Both require an initial cash outlay of ` 10,000 each for machinery and have a life of 5 years. The company’s required rate of return is 10% and it pays tax at 50%. The projects will be depreciated on a straight -line basis. The net cash flows (before taxes) expected to be generated by the projects and present value (PV) factor (at 10%) are as follows : Year Project 1 Project 2 PV factor (at 10%)
Q25.621 You are required to calculate and suggest which project is better under :
(i) the Pay Back Period method
(ii) the NPV and Profitability Index methods.