IGNOU MCO-07 December 2025 Previous Year Question Paper

Q1.What is Financial M anagement ? Discuss the activities of Finance Man agers and the challenges faced by them in India. 2+10+8 [ 2 ]

Q2.(a) Suppose a company issues 8% ( ` 100 at par) preference shares, will be called in 4 years as ` 110. The current market call date. 10

(b) Describe the different types of systematic risks with examples.

Q3.A company has three investment proposals. The cash flow of each proposal are given below. If the cost of capital is 12%, select which proposal the company should accept using profitability index method. (PV factor at 12% is 0.893, 0.797, 0.71 9 and 0.634 for

Q5.Discuss the concept of lease financing and the different provisions a typical lease agreement contains. Also explain in detail the different forms of lease financing.

Q6.What do you mean by project financing ?

Q7.Discuss the process of risk identification, assessment and mitigation while structuring the project finance deal. 20 [ 4 ]

Q8.(a) What is meant by th e capital structure of a company ? Discuss the factors influencing capital structure. 8

(b) What is leverage ? What are the different types of leverages and how are they calculated ? Discuss the significance of each of the leverage.

Q9.(a) How does international financial management widen the scope of a company ? 8

(b) Differentiate between primary capital market and secondary capital market.

Q10.Explain the factors that influence working capital needs. Also discuss how the risk - return trade off is maintained by working capital policy. 10+10 [ 5 ]

Q11.Write explanatory note s on any two of the following : 10+10

(a) Inventory management

(b) Cost of capital

(c) Dividend policy

(d) Time value of money [ 6 ] MCO–07 okf.kT; esa LukrdksÙkj mikf/k (,e- dkWe-) l=kar ijh{kk fnlEcj] 2025 ,e-lh-vks-&07 % foÙkh; izcU/k le; % 3 ?k.Vs vf/kdre vad % 100 uksV % fdUgha ik¡p iz'uksa ds mÙkj fyf[k,A 1- foÙkh; izca/k D;k gS \ foÙk izca/kd ds dk;ks± rFkk Hkkjr esa mlds le{k pqukSfr;ksa dh foospuk dhft,A 2$10$8 [ 7 ] MCO–07 2-

(d) ,d dEiuh us ` 100 ds ewY; ds iwokZf/kdkj va'k ftudh ykHkka'k nj 8% gS vkSj tks 4 o"kZ ds i'pkr~ ` 110 ds gks tk,¡xs] tkjh fd,A orZeku cktkj ewY; ` 80 gSA dkWy dh frfFk (YTC) ij D;k izfrQy gksxk] Kkr dhft,A 10 ([k) O;ofLFkr tksf[keksa ds fofHkUu izdkjksa dk mnkgj.k lfgr o.kZu dhft,A 10 3- ,d dEiuh ds ikl rhu fuos'k ds izLrko gSaA izR;sd izLrko ds jk sdM+ izokg fuEufyf[kr gSaA ;fn iw¡th dh ykxr 12% gS] rks crkb, fd dEiuh dks dkSu&lk lq>ko ekuuk pkfg,A ykHkiznrk lwpd fof/k dh lgk;rk ls Kkr dhft,A 20 [ 8 ] MCO–07 (12% iw¡th dh ykxr ij PV QSDVj 1, 2, 3 vkSj 4 o"kZ dk Øe'k% 0.893, 0.797, 0.719 vkSj 0.634 gS) % o"kZ jksdM+ izokg izkstsDV A (`) jksdM+ izokg izkstsDV B (`) jksdM+ izokg izkstsDV C (`) 0 (18,000) (55,000) (35,000) 1 5,600 12,000 13,000 2 6,000 20,000 13,000 3 8,000 24,000 13,000 4 8,000 32,000 13,000 4- iV~Vk foÙkh; u dh ladYiuk vkSj fof'k"V iV~Vk foÙkh;u vuqca/k ds fofHkUu izko/kkuksa dh ppkZ dhft,A iV~Vk foÙkh;u ds fofHkUu izdkjksa dh foLrkj ls O;k[;k dhft,A 8$12 [ 9 ] MCO–07 5- ifj;kstuk foÙkh;u ls vki D;k le>rs gSa \ ifj;kstuk foÙk lkSns dh lajpuk djrs l e; tksf[ke dks igpkuus] mudk vkdyu djus o mls de djus dh izfØ;k dh ppkZ dhft,A 20 6-

(d) dEiuh dh iw¡th lajpuk ls vki D;k le>rs gSa \ mu dkjdksa dh ppkZ dhft, tks iw¡th lajpuk dks izHkkfor djrs gSaA 8 ([k) yhojst D;k gS \ yhojst ds fofHkUu izdkj D;k gSa rFkk mUgsa fdl izdkj Kkr fd;k tkrk gS \ izR;sd yhojst ds egRo dh ppkZ dhft,A 12 7-

(d) varjkZ"Vªh; fo Ùkh; izca/k fdl izdkj dEiuh dk dk;Z{ks= c krk gS \ 8 ([k) izkFkfed iw¡th cktkj rFkk f}rh;d iw¡th cktkj ds chp varj Li"V dhft,A 12 [ 10 ] MCO–07 8- dk;Z'khy iw¡th dh vko';drkvksa dks izHkkfor djus okys dkjdksa dk o.kZu dhft,A dk;Z'khy iw¡th uhfr fdl izdkj tksf[ke rFkk izR;k; ds chp l keatL; cukrh gS] bldh Hkh ppkZ dhft,A 10$10 9- fuEufyf[kr esa ls fdU gha nks ij O;k[;kRed fVIif.k;k¡ fyf[k, % 10$10

(d) LVkWd izca/k ([k) iw¡th dh ykxr (x) ykHkka'k uhfr (?k) eqæk dk le; ewY;