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    MCO-07 Dec13

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    BinayKP
    This document is a study guide for the Master of Commerce term-end examination in Financial Management. It contains 9 questions covering topics like time value of money, equity valuation, capital budgeting, cost of capital, lease financing, and capital structure. Students are instructed to answer any 5 of the 9 questions in the 3 hour exam. The questions provide definitions, calculations, and discussions related to key concepts in corporate finance.

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    MCO-07 Dec13

    Uploaded by

    BinayKP
    65 views4 pages
    This document is a study guide for the Master of Commerce term-end examination in Financial Management. It contains 9 questions covering topics like time value of money, equity valuation, capital budgeting, cost of capital, lease financing, and capital structure. Students are instructed to answer any 5 of the 9 questions in the 3 hour exam. The questions provide definitions, calculations, and discussions related to key concepts in corporate finance.

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    MCO-07 dec13

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    This document is a study guide for the Master of Commerce term-end examination in Financial Management. It contains 9 questions covering topics like time value of money, equity valuation, capital budgeting, cost of capital, lease financing, and capital structure. Students are instructed to answer any 5 of the 9 questions in the 3 hour exam. The questions provide definitions, calculations, and discussions related to key concepts in corporate finance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    65 views4 pages

    MCO-07 Dec13

    Uploaded by

    BinayKP
    This document is a study guide for the Master of Commerce term-end examination in Financial Management. It contains 9 questions covering topics like time value of money, equity valuation, capital budgeting, cost of capital, lease financing, and capital structure. Students are instructed to answer any 5 of the 9 questions in the 3 hour exam. The questions provide definitions, calculations, and discussions related to key concepts in corporate finance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    No.

    of Printed Pages : 4 MCO-07


    MASTER OF COMMERCE
    Term-End Examination
    a
    December, 2013
    ts")

    MC0-07 : FINANCIAL MANAGEMENT

    Time : 3 hours Maximum Marks : 100


    Weightage : 70%
    Note : Answer any five questions.

    1. (a) Why is the consideration of time important


    in financial decision-making ? Illustrate
    your answer. 10, 10
    (b) Explain the different approaches used for
    valuation of equity shares.

    2. Explain the arbitrage - pricing theory. Compare 20


    and constrast it with CAPM.

    3. (a) Explain capital budgeting and its


    importance. 10, 10
    (b) A firm is considering an investment
    proposal worth Rs 80,000. The CFAIs (cash
    flows after tax) are expected to be on
    follows. The rate of discount is 10%.
    Calculate NPV and find out whether the
    project is worthwhile or not.
    Year 1 2 3 4 5
    CFATs
    15,000 22,000 27,000 29,000 21,000
    (Rs.)

    MCO-07 1 P.T.O.
    The PV of Re 1 is 0.909, 0.826, 0.751, 0.683 and
    0.620 from year one to five years respectively.

    4. (a) Explain the meaning and importance of the


    cost of capital. 10, 10
    (b) How is the cost of preference shares capital
    calculated ? Give example.
    5. (a) Explain the benefits and limitations of lease
    financing. 10, 10
    (b) Discuss the advantages of foreign exchange
    market.
    6. (a) What is the difference between the primary
    and secondary capital market ? 10, 10
    (b) What are the recent developments in capital
    markets in India ?
    7. Selling price per unit Rs. 20 20
    Variable cost per unit Rs. 12
    Actual sales 200 units
    From the above information calculate operating
    leverage in each of the following two situations.
    (a) When fixed cost is Rs 1,000
    (b) When fixed cost is Rs 800
    8. (a) Explain the different motives for holding
    cash. 10, 10
    (b) Discuss the different selective inventory
    control techniques.
    9. Write explanatory notes on any two of the
    following : 10, 10
    (a) Goals of financial management
    (b) NPV Vs. IRR
    (c) Optimal capital structure
    (d) Dividend Policy

    MCO-07 2
    71A.311.-07
    ciliznqg -4 ,--IirichlTH Trrar (M.Com)
    Wien
    q*ii-c4t, 2013
    71.1#.311.-07 : fq-9-174 1;14ET

    77777 : 3 u2 arrEiwuR- 31w : 100


    ,sboi w : 70%

    1. (a) fl44 fa-ofzff -4 wii t -i1-11.11 c4)


    31r-471— t? dqituf ITtff drit ceIRTRI 10, 10
    (b) ref t:14 * 4-1-tiich-1 -1- fa-fir 31-Ter1 31l`
    auk .--1-r-- R 1
    2. 3f-d-t-rniF --1-T:ru figiTuT #1-
    41 --r auil Vf-
    A7 1 T{T-*- 20
    CAPM ' vili 'U2.TT 3I-- TcF1Z -1-1-- I

    3. (a) tt 4-at 4-1,T{Tk fir auk Vf- A71 10, 10


    (b) Ii --P:191. 80,000T. clic; MT •5177ig -4 TEIIM-1-
    arta -wr fqqR t t 1 t tr7q-rq,tr-*7-51-qr
    (CFAT) 5icnit i?la TIT-ITT-4T t I Tat 7
    10% ti fi-d" *IN 17[ (NPV) 71ff Vf- 47
    'd2TE 'qaTT4 err -tiro-IA-1i 1:41--*7 .1,ot dr-cof t zrr
    -fa?
    1 2 3 4 5
    CFATs
    15,000 22,000 27,000 29,000 21,000
    (T.)

    MCO-07 3 P.T.O.
    1 T. q-41TF -> cri b+-Rf:
    t:
    0.909, 0.826, 0.751, 0.683 72TT 0.620

    4. (a) tA" t't (1141d 330 72.T11: 1r-4R I


    (b) k4-{ t?=1-T itt
    s rimi f R -11c1 ail
    Q-11d1 *? qrs311 10, 10

    5. (a) 1-1d,d1 fa41q 71I-T 211 .4-1-174 'W1 a uk


    (b) fqkqil• rar-Hq -q1,31 It .1(11)' ci;l'ariCociT
    10, 10
    6. (a) srm-ricrT 72,TT fg-dtzr- t4- .t1A1t 4 eV-41 t?

    (b) I11RUI4 silA1t 14 t? 10, 10


    7. 51 rd 7-*-11 fdWzI 20 T. 20
    7eFf trft-q-al (11+Id 12 T.
    fd-Fzi 200 .-11
    31-71-4aTT9. -T 3741-{ -97 HR-cno-i
    trftft-gr-d-zif IA{ =.110-1 4 fluili :
    (a) zit 0■ 41c-f t : 1,000 T.
    (b) TQTR:ft oind t : 800 T.

    8. (a) 1TT§1-4 31-WA T 9Wrr- 10, 10


    (b) faf113i tmlIc-4-i-41 dcb9W ci) 0241(sit
    W--4 I

    9. 14-1 Oti 4 -cr{ tart -f -rw.


    10, 10
    (a) td-917:1 9,so-q
    (b) a417-9- .1-1141
    (c) ltt
    (d) crr.if7T I

    MCO-07 4

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