IGNOU MCO-07 December 2024 Previous Year Question Paper

Q1.(a) Explain the basic financial functions. How do they evolve risk-return trade-off ? 6+6

(b) Discuss the different types of systematic risk. 8 [ 2 ]

Q2.(a) What is Capital Budgeting ? What are the requisites of a good method of investment proposal ? 2+6

(b) A company is considering two different investment proposals –Proposal ‘A’ and Proposal ‘B’. The details are as follows : 12 Proposal Proposal Investment Cost

Q3.500 20,000 Estimated income : Year 1 4,000 8,000 Year 2 4,000 8,000 Year 3 4,500 12,000 [ 3 ] MCO–07 Calculate the Net Present Value of both the proposal s and suggest the attractive proposals on the basis of NPV considering that the future incomes are discounted at 12%. (The PV of Re. 1 at 12% for year 1, 2 and 3 are 0.893, 0.797 and 0.712 respectively).

Q4.Explain the concept of lease financing.

Q5.Distinguish between leasing and hire purchase.

Q6.Discuss the benefits of lease financing from the point of view of lessee. 5+5+10

Q7.Differentiate between the following : 10+10

(a) Domestic financial management and International financial management

(b) Corporate finance and Project finance

Q8.What do you understand by buyback of shares ?

Q9.What are the legal requirements for share buyback as per Companies Act ? Discuss the rationale for share buyback. 5+5+10 [ 4 ]

Q10.(a) What do you understand by capital structure of a firm ? Discuss the factors which influence capital structure. 2+8

(b) Discuss the factors which determine dividend payout ratio.

Q11.(a) What is operating leverage ? Calculate the operating leverage from the following data : 2+8 Sales ` 50,000 Variable costs 60% of sales Fixed costs ` 8,000

(b) What is Financial Leverage ? Calculate the financial leverage from the following data : 2+8 Net worth ` 25,00,000 Debt/Equity 3 : 1 Interest rate 12% Operating profit ` 12,00,000 [ 5 ]

Q12.(a) What is Money Market ? Explain its characteristics. 2+8

(b) Discuss the objectives of inventory management.

Q13.Write explanatory notes on any two of the following : 10+10

(a) Capital Asset Pricing Model

(b) Monitoring of Receivables

(c) Cost of Capital

(d) Time Value of Money [ 6 ] MCO–07 okf.kT; esa LukrdksÙkj mikf/ (,e- dkWe-) l=kkar ijh{kk fnlEcj] 2024 ,e-lh-vks--07 % foÙkh; izcU/ le; % 3 ?k.Vs vf/dre vad % 100 uksV %

(i) fdUgha ik¡p iz'uksa ds mÙkj nhft,A

(ii) lHkh iz'uksa ds vad leku gSaA 1-

(d) vk/kjHkwr foÙkh; dk;ks± dk o.kZu dhft,A ; s tksf[ke&izR;k; esa fdl izdkj leatu cukrs gSa \ 6$6 ([k) O;ofLFkr tksf[ke ds fofHkUu izdkjksa dh O;k[;k dhft,A 8 2-

(d) iw¡th ctfVax D;k gS \ ,d mÙke fuos'k fof/ ds vko';d rRo D;k gSa \ 2$6 [ 7 ] MCO–07 ([k) ,d dEiuh nks fofHkUu fuos'k izLrkoksa ij fopkj dj jgh gS&izLrko ‘A’ rFkk izLrko ‘B’A fooj.k bl izdkj gSa % 12 izLrko ‘A’ izLrko ‘B’ fuos'k ykxr 9,500 20,000 vuqekfur vk; % o"kZ 1 4,000 8,000 o"kZ 2 4,000 8,000 o"kZ 3 4,500 12,000 nksuksa izLrkoksa d k fuoy orZeku ewY; Kkr dhft, vkSj lq>kb, fd fuoy orZeku ewY; ds vk/kj ij dkSu&lk izLrko vkd"kZd gSA ;g è;ku nsrs gq, fd Hkkoh vk;ksa dks 12 % ij dVkSrhxr (discounted) fd;k x;k gSA (,d #i;s dk orZeku ewY; (PV) 12% ij o"kZ 1] 2 vkSj 3 dk Øe'k% 0 -893] 0 -797 vkSj 0-712 gSA) [ 8 ] MCO–07 3- iV~Vk foÙkh;u dh ladYiuk dk o.kZu dhft,A iV~Vk vkSj fdjk;k Ø; (hire purchase) ds chp varj dhft,A iV~Vsnkj (lessee) ds n`f"Vdks.k ls iV~Vk foÙkh;u ds ykHkksa dh O;k[;k dhft,A 5$5$10 4- fuEufyf[kr ds chp varj Li"V dhft, % 10$10

(d) ?kjsyw foÙkh; izcU/ rFkk varjkZ"V ªh; foÙkh; izcU/ ([k) dkWikZsjsV foÙk rFkk ifj;kstuk foÙk 5- 'ks;jksa ds okil Ø; ls vki D;k le>rs gSa \ dEiuh vf/fu;e ds varxZr 'ks;jksa ds ok il Ø; ds D;k dkuwuh fu;e gSa \ 'ks;jksa ds okil Ø; ds vkSfpR; dh O;k[;k dhft,A 5$5$10 6-

(d) iQeZ dh iw¡th lajpuk ls vki D;k le>rs gSa \ iww¡th lajpuk dks izHkkfor djus okys dkjdksa dh O;k[;k dhft,A 2$8 ([k) ykHkka'k isvkmV vuqikr dks fu/kZfjr djus okys dkjdksa dh O;k[;k dhft,A 10 [ 9 ] MCO–07 7-

(d) ifjpkyu yhojst D;k gS \ fuEufyf[kr vk¡dM+ksa ds vk/kj ij ifjpkyu yhojst Kkr dhft, % 2+8 foØ; ` 50,000 ifjorhZ ykxr foØ; dk 60% LFkk;h ykxr ` 8,000 ([k) foÙkh; yhojst D;k gS \ fuEufyf[kr vk¡dM+ksa ds vk/kj ij foÙkh; yhojst Kkr dhft, % 2+8 fuoy laifÙk (Net worth) ` 25,00,000 ½.k@bfDoVh 3 : 1 C;kt nj 12% ifjpkyu ykHk ` 12,00,000 8-

(d) eqnzk cktkj D;k gS \ bldh fo'ks"krkvksa dk o.kZu dhft,A 2$8 ([k) LVkWd izcU/ ds mís';ksa dk o.kZu dhft,A 10 [ 10 ] MCO–07 9- fuEufyf[kr eas ls fdUgha nks ij O;k[;kRed fVIif.k;k¡ fyf[k, % 10$10

(d) iw¡th ifjlaifÙk ewY;fu/kZj.k ekWMy ([k) izkI;ksa dh fuxjkuh (x) iw¡th dh ykxr (?k) eqnzk dk le; ewY;