MMPF-002 · December 2023 · English
IGNOU MMPF-002 December 2023 Previous Year Question Paper
CAPITAL INVESTMENT AND FINANCING DECISIONS
Structured previous year question paper for MMPF-002, December 2023 session.
Max marks: 100 · Questions: 11
Verified: 11 Sept 2026
MASTER OF BUSINESS
ADMINISTRATION
(MBA)
Term-End Examination
December, 2023
MMPF-002 : CAPITAL INVESTMENT AND
FINANCING DECISIONS
Time : 3 Hours Maximum Marks : 100
(Weightage : 70%)
Note :
(i) Answer any five questions.
(ii) All questions carry equal marks.
Q1.Describe the nature of Financial Decisions and discuss the inter -relationship amongst these decisions.
Q2.ABC and XYZ Ltd. have the same levels of business risk and their market values and earnings are summarised given ahead : [ 2 ] MMPF–002 Particulars ABC Ltd. XYZ Ltd. Market value : Equity 6,00,000 3,00,000 Debt Nil 2,50,000
Q3.00,000 5,50,000 Earnings 90,000 90,000 Less : Interest Nil 22,000
Q4.000 68,000 Calculate the post -tax cost of equity, cost of debt and weighted average cost of capital of both the companies. Assume that the income tax rate is 35% and additional tax on dividend distribution is 20%.
Q5.Explain the distinguishing features of a project and discuss in detail the dynamics of the project life cycle.
Q6.What is Social Cost -Benefit Analysis (SCBA) ? In the context of SCBA , explain the concept of ‘Market Failures’.
Q7.What do you understand by ‘Certainty Equivalents’ ? Explain the relationship between certainty equivalents and risk adjusted discount rate.
Q8.Explain the various instruments through which companies raise debt capital.
Q9.What are the various forms of mergers ?
Q10.Discuss the motives for mergers.
Q11.Briefly explain the corporate form of business organisation and discuss the key considerations for investors’ relation function.