MMPC-014 · June 2025 · English
IGNOU MMPC-014 June 2025 Previous Year Question Paper
FINANCIAL MANAGEMENT
Structured previous year question paper for MMPC-014, June 2025 session.
Max marks: 100 · Questions: 9
Verified: 11 Sept 2026
MASTER OF BUSINESS
MANAGEMENT/MBA (HEALTH
CARE AND HOSPITAL
MANAGEMENT) /
MBA (LOGISTICS AND SUPPLY
CHAIN MANAGEMENT)/
MBA (CONSTRUCTION
MANAGEMENT)
(MBA/MBAHCHM)
Term-End Examination
June, 2025
MMPC-014 : FINANCIAL MANAGEMENT
Time : 3 Hours Maximum Marks : 100
Note :
(i) Attempt any five questions.
(ii) All questions carry equal marks.
[ 2 ] MMPC–014
Q1.What is Time Value of Money ? What is its significance ? Explain how the time value of money is calculated.
Q2.What is the need for valuation of Securities ? Discuss the different Business Valuation Approaches.
Q3.What is the significance of Working Capital ? What are the determinants of Working Capital ?
Q4.What are ‘Equity Shares’ and ‘Debentures' ?
Q5.Compare and contrast these two in relation to their advantages and disadvantages.
Q6.Why is dividend decision important for a firm ? Explain briefly, different relevance theories of dividend. [ 3 ]
Q7.Explain the charac teristics of a sound investment appraisal method . Discuss the different discounted cashflow methods of appraising investment proposals.
Q8.What is Behavioural Finance ? Discuss its scope and characteristics. Differentiate between Behavioural Finance and Traditional Finance.
Q9.A company needs ` 5,00,000 for acquiring a new plant. The following three financing options are being considered :
(i) Issuing 50000 equity shares of ` l0 each, or
(ii) Issuing 25000 equity shares of ` 10 each and 2500 debentures of ` 100 each bearing 8% rate of interest, or [ 4 ] MMPC–014
(iii) Issuing 25000 equity shares of ` 10 each and 2500 Preference Shares of ` 100 each bearing a 8% rate of dividend. The company’s earnings before interest and taxes is ` 1,00,000/-. The tax rate applicable to the company is 50%. You are required to calculate earnings per share for each of the above financing option s and suggest which option is best.