IGNOU MCO-07 December 2020 Previous Year Question Paper

Q1.(a) What is Financial Management ? How does the financial decision -making involve risk - return trade-off ? 4 + 8

(b) Discuss the role of financial manager.

Q2.(a) What do you mean by ‘ present value of a future amount ’ ? How are the present value and future value calculated ? 4 + 8

(b) What are the different types of C ost of Capital ? Explain. 8 [ 2 ]

Q3.(a) Explain the concept of working capital and also discuss its objectives. 2 + 8

(b) Distinguish between Securitisation and Factoring.

Q4.A firm has a sales of ` 75,00,000; variable cost ` 42,00,000 and fixed cost ` 6,00,000. It has debt of ` 45,00,000 at 9% and equity of ` 55,00,000. Calculate its financial leverage and operating leverage and if its sales drop to ` 50,00,000 what will be its new EBIT ? 7 + 7 +

Q5.(a) What are the factors involved in the valuation of securities ? 10

(b) Explain the concept of ‘Risk’ and ‘Return’. What are different types of risks ?

Q6.Explain briefly the different types of sour ces of long-term finance.

Q7.What is Lease Financing ? Discuss different types of lease. What are its advantages and limitations ? 4 + 8 +

Q8.A company is considering which of the two mutually exclusive projects it should undertake. The cost of capi tal is 10% and the net after -tax cash flows of the projects are as follows : (" 000 ) Year Cash Flows Project X Project Y 0 (200) (200) 1 35 218 2 80 10 3 90 10 4 75 4 Calculate the NPV of each project and suggest with reasons which project company should undertake. The discount factor at 10% is : 20 Year Discount Factor 0 1 1 0.91 2 0.83 3 0.75 4 0.68 [ 4 ]

Q9.Write notes on any two of the following : 10 each

(a) Capital Rationing

(b) Dividend Policy

(c) Receivables Management

(d) Capital Structure okf.kT; esa LukrdksÙkj mikf/ (,e- dkWe-) l=kkar ijh{kk fnlEcj] 2020 ,e-lh-vks--07 % foÙkh; izcU/ le; % 3 ?k.Vs vf/dre vad % 100 uksV % fdUgha ik¡p iz'uksa ds mÙkj nhft,A 1-

(d) foÙkh; izcU/ D;k gS\ foÙkh; fu.kZ;u izfØ;k esa tksf[ke&izR;k; fdl izdkj leatu gksrk gS\ 4 + 8 ([k) foÙkh; izcU/d dh Hkwfedk dh ppkZ dhft,A 8 2-

(d) ^Hkkoh jkf'k ds orZeku ewY; * ls vki D;k le>rs gSa \ orZeku ewY; rFkk Hkkoh ewY; dh x.kuk fdl izdkj dh tkrh gS\ 4 + 8 ([k) iw¡th dh ykxr ds fofHkUu izdkj D;k gSa\ o.kZu dhft,A 8 3-

(d) dk;Z'khy iw¡th dh ladYiuk dh O;k[;k dhft, vkSj blds mís';ksa dh Hkh ppkZ dhft,A 2 + 8 ([k) iQSDVfjax rFkk izfrHkwfrdj.k esa vUrj Li"V dhft,A 10 4- ,d iQeZ dk foØ; ` 75,00,000; ifjorhZ ykxr ` 42,00,000 vkSj fLFkj ykxr ` 6,00,000 gSA ½.k ` 45,00,000 9% d h n j i j g S r F k k b f D o V h ` 55,00,000 gSA bldk foÙkh; yhojst vkSj ifjpkyu yhojst Kkr dhft, vkSj bldh ubZ EBIT (C;kt rFkk dj iwoZ vk;) D;k gksxh ] ;fn bldk foØ; ` 50,00,000 gks tkrk gS \ 7 + 7 + 6 5-

(d) izfrHkwfr;ksa ds ewY;kadu esa dkSu&ls dkjd 'kkfey gSa\ 10 ([k) ^tksf[ke* ,oa ^izR;k;* dh ladYiuk dk o.kZu dhft,A tksf[ke ds fofHkUu izdkj D;k gSa\ 10 6- nh?kkZof/ foÙk ds fofHkUu lzksrksa dk laf{kIr o.kZu dhft,A 20 7- iV~Vk foÙkh;u D;k gS \ blds fofHkUu izdkjksa dh ppkZ dhft,A blds ykHk ,oa lhek,¡ D;k gSa\ 4 + 8 + 8 8- ,d dEiuh] nks ijLij O;korZd ifj;kstukvksa esa ls fdl ifj;kstuk dk p;u djuk gS] ij fopkj dj jgh gSA iw¡th dh ykxr 10% gS rFkk ifj;kstukvksa ds fuoy jksdM+ izokg bl izdkj gSa % ("000) o"kZ jksdM+ izokg ifj;kstuk X ifj;kstuk Y (200) (200) 1 35 218 2 80 10 3 90 10 4 75 4 izR;sd ifj;kstuk dk fuoy orZeku ewY; Kkr dhft, rFkk dkj.k lfgr crkb, fd dEiuh dks dkSu&lh ifj;kstuk ysuh pkfg, A 10% ij dlkSVh dkjd bl izdkj gaS % 20 o"kZ dlkSVh dkjd 0 1 1 0.91 2 0.83 3 0.75 4 0.68 9- fuEufyf[kr essa ls fdUgha nks ij fVIif.k;k¡ fyf[k, % izR;sd 10

(d) iw¡th jk'kfuax ([k) ykHkka'k uhfr (x) izkI; izca/ (?k) iw¡th lajpuk MCO–07 19,130