MMPF-002 · December 2022 · English

IGNOU MMPF-002 December 2022 Previous Year Question Paper

CAPITAL INVESTMENT AND FINANCING DECISIONS

Structured previous year question paper for MMPF-002, December 2022 session.

Max marks: 100 · Questions: 11

Verified: 11 Sept 2026

MASTER OF BUSINESS ADMINISTRATION

Term-End Examination

December, 2022

MMPF-002 : CAPITAL INVESTMENT AND

FINANCING DECISIONS

Time : 3 hours Maximum Marks : 100

Weightage 70%

Note :

(i) Attempt any five questions.

(ii) All questions carry equal marks.

Q1.Discuss the nature of financial decisions and explain the inter -relationship among these decisions.

Q2.What do you understand by ‘Cost of Capital’ ?

Q3.How is the cost of long -term debt and equity share capital computed ?

Q4.Discuss the distinguishing features of a project.

Q5.Explain the concept of project life cycle and discuss the unique characteristics of each stage of project life cycle.

Q6.What is Capital Budgeting ? How are the cash flows for capital budgeting estimated ? Briefly explain the discounted cash flow techniques used for evaluating investment proposal.

Q7.What is ‘Project Control’ ? Explain the types of control processes and specify the information requirement for application of each of these processes.

Q8.Explain the following :

(a) Certainty Equivalents

(b) Monte Carlo Simulation

Q9.Who are the S takeholders of a company ? What type of information i s demanded by the different stakeholders and in what aspects does this information differ for different stakeholders ?

Q10.What is Corporate Restructuring ? Explain the dimensions of restructuring. How is merger assessed as a source of value addition ?

Q11.What are the major global sources of financing a project ?