MMPC-014 · June 2023 · English
IGNOU MMPC-014 June 2023 Previous Year Question Paper
FINANCIAL MANAGEMENT
Structured previous year question paper for MMPC-014, June 2023 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
June, 2023
MMPC-014 : FINANCIAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Note :
(i) Attempt any five questions.
(ii) All questions carry equal marks.
Q1.Discuss the concept s of ‘Wealth Maximisation’ and ‘Profit Maximisation’ and bring out differences between them.
Q2.Explain the concept of Investment Risk.
Q3.Discuss the different types of risk.
Q4.Explain the need for ‘Valuation’. Discuss the different types of business valuation approaches.
Q5.What is a ‘Financial Market’ ? Discuss the role and funtions of Financial Markets. [ 2 ]
Q6.Discuss ‘Trade Credit’ an d Factoring” as source of short -term capital and bring out its advantage and disadvantages.
Q7.Explain the features of an appropriate capital structure and discuss the determinants of capital structure of a firm.
Q8.What is Behavioral Finance ? Which decision - making errors and biases hinder the rational investment decisions ?
Q9.A Company is considering a proposal of installing drying equipment. The equipment would involve a cash outlay of Rs. 6,00,000. The expected life of the project is 5 years without any salvage value. Assume that the company is allowed to change dep reciation on straight line basis for income tax purpose. The estimated before tax cash inflows are given below : Before tax cash inflows : Year 1 240 2 275 3 210 4 180 5 160 The applicable i ncome tax rate to the company is 35%. The company’s opportunity cost of capital is 12%. Evaluate the investment proposal using the payback period, net p resent value and profitability index methods. The PV factors at 12% are : Year PV factor at 12% 1 0.8929 2 0.7972 3 0.7118 4 0.6355 5 0.5674