IGNOU MCO-07 June 2025 Previous Year Question Paper

Q1.What is financial management ? Discuss the objectives of financial management. Which of the objectives is better and why ? 5+10+5

Q2.Discuss different approaches used for the valuation of equity shares.

Q3.A company is considering an investment proposal to install a new machinery. The project unit cost ` 50,000 and it has a life of 5 years with no salvage value. The tax rate of comp any is 55% and uses straight lin e [ 2 ] MCO–07 method of depreciation. The estimated cash flows before tax (CFBT) are ` 10,000; ` 11,000; ` 14,000; ` 15,000 and ` 25,000; during the years 1, 2, 3, 4 and 5 respectively. You are required to compute Net Present Value (NPV) at 10% discount rate. (P.V. factor at 10% for the years 1, 2, 3, 4 and 5 are 0.909, 0.826, 0.751, 0.683 and

Q4.621.) Also suggest whether the company should accept the project or not.

Q5.What are the different sources of long -term finance ? Explain in detail about the sal ient features of equity shares and preference shares.

Q6.(a) Discuss the role of stock exchange s in India. 10

(b) Differentiate between corporate finance and project finance. 10 [ 3 ]

Q7.Given below is the data of Vishal & Company Ltd. for the year ending March 2022 : 10+10 Particulars Amount Sales 4,80,000 Variable Cost 2,80,000 Fixed Cost 1,20,000 Interest 30,000 Based on the above information, calculate :

(a) Degree of financial leverage; and

(b) Degree of operating leverage.

Q8.(a) Why do firms pay dividend ? Discuss. 10

(b) What do you mean by working capital of the firm ? What are its different types and significance ? 10 [ 4 ]

Q9.(a) Discuss the objectives and motives for holding cash. 10

(b) Describe the different techniques to control inventory effectively.

Q10.Write explanatory note s on any two of the following : 10+10

(a) Receivables Management

(b) Capital Structure

(c) Arbitrage Pricing Theory

(d) Lease financing [ 5 ] MCO–07 okf.kT; esa LukrdksÙkj mikf/k (,e- dkWe-) l=kar ijh{kk twu] 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; izcU/k D;k gS \ foÙkh; izcU/k ds y{;ksa dh ppkZ dhft,A dkSu&lk y{; csgrj gS vkSj D;ksa \ 5$10$5 2- bfDoVh 'ks;jksa ds ewY;kadu ds fy, fofHkUu vo/kkj.kkvksa dh ppkZ dhft,A 20 3- ,d dEiuh ,d u;h e'khu ij fuos'k ds fy, fopkj dj jgh gSA u;h ifj;kstuk dh ykxr ` 50,000 gS vkSj bldk thou ` 5 o"kZ gS vkSj dksbZ vo'ks"k ewY; ugha gSA dEiuh [ 6 ] MCO–07 dh dj dh nj 55% gS rFkk Îkl ljy js[kk fof /k ij yxk;k tkrk gSA 1, 2, 3, 4 vkSj 5 o"kks± ds fy, dj ls iwoZ vuqekfur jksdM+ izokg ` 10,000; ` 11,000; ` 14,000; ` 15,000 rFkk ` 25,000 Øe'k% g®A 10% dVkSrh nj ij fuoy orZeku ewY; (NPV) dh x.kuk dhft,A (10% NwV nj ij P .V. QSDVj 1, 2, 3, 4 rFkk 5 o" kZ ds fy, Øe'k% 0.909, 0.826, 0.751, 0.683 rFkk

Q11.621 gSA) ;g Hkh lq>ko nhft, fd dEiuh dks ifj;kstuk Lohdkj djuh pkfg;s ;k ughaA 20 4- nh?kZdkyhu foÙk ds fofHkUu lzksr dkSu ls g® \ lerk va'kksa rFkk iwokZf/kdkj va'kksa dh izeq[k fo'ks"krkvksa dk foLrkjiwoZd o.kZu dhft,A 4$16 5-

(d) Hkkjr esa LVkWd ,Dlpsatksa dh Hkwfedk dh foospuk [ 7 ] MCO–07 ([k) fuxe foÙk rFkk ifj;kstuk foÙk ds chp varj Li"V 6- fo'kky ,aM dEiuh fy feVsM dk 22 ekpZ dks lekI r gksus okys o"kZ dk fooj.k fuEu izdkj gS % fooj.k jkf'k (`) foØ; 4,80,000 ifjorZu'khy ykxr 2,80,000 LFkk;h ykxr 1,20,000 C;kt 30,000 mi;qZDr lwpuk ds vk/kkj ij Kkr dhft, % 10$10

(d) foÙkh; yhojst dh fMxzh vkSj ([k) ifjpkyu yhojst dh fMxzh 7-

(d) QeZ ykHkka'k D;ksa nsrh g®\ foospuk dhft,A 10 ([k) QeZ dh dk;Z'khy iw¡th ls vki D;k le>rs g® \ blds fofHkUu izdkj rFkk egRo D;k gS\ 10 [ 8 ] MCO–07 8-

(d) jksdM+ j[kus ds mís'; rFkk vfHkizsjdksa dh ppkZ ([k) LVkWd ds oqG'ky fu;U=.k dh fofHkUu rduhdksa dh O;k[;k dhft,A 10 9- fuEufyf[kr esa ls fdUgha nks ij O;k[;kRed fVIif.k;k¡ fyf[k, % 10$10

(d) izkI; izcU/k ([k) iw¡th lajpuk (x) varji.ku ewY; fu/kkZj.k fl¼kUr (?k) iV~Vk foÙkiks"k.k