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    MMPC 14

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    twinklekumari76263
    The document discusses various topics related to financial management including different types of financial decisions, investment risk, valuation process, cost of capital, money market, dividend decisions, and financial restructuring. It also includes a numerical problem asking to calculate payback period, net present value and profitability index for a project.

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    MMPC 14

    Uploaded by

    twinklekumari76263
    50 views2 pages
    The document discusses various topics related to financial management including different types of financial decisions, investment risk, valuation process, cost of capital, money market, dividend decisions, and financial restructuring. It also includes a numerical problem asking to calculate payback period, net present value and profitability index for a project.

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    MMPC-14

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    The document discusses various topics related to financial management including different types of financial decisions, investment risk, valuation process, cost of capital, money market, dividend decisions, and financial restructuring. It also includes a numerical problem asking to calculate payback period, net present value and profitability index for a project.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    50 views2 pages

    MMPC 14

    Uploaded by

    twinklekumari76263
    The document discusses various topics related to financial management including different types of financial decisions, investment risk, valuation process, cost of capital, money market, dividend decisions, and financial restructuring. It also includes a numerical problem asking to calculate payback period, net present value and profitability index for a project.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    No.

    of Printed Pages : 2 MMPC-014

    MASTER OF BUSINESS
    ADMINISTRATION/MASTER OF BUSINESS
    FINANCE (BANKING/FINANCE) (MBA/MBF)
    Term-End Examination
    December, 2022

    MMPC-014 : FINANCIAL MANAGEMENT

    Time : 3 hours Maximum Marks : 100

    Note : Attempt any five questions. All questions carry


    equal marks.

    1. Discuss different types of Financial Decisions


    that are taken in an organisation.

    2. What is the meaning of Investment Risk ?


    Explain briefly the various sources of risk in
    investments.

    3. Explain the need for ‘Valuation’. Describe the


    Three-Step (EIC) Valuation Process.

    4. What is ‘Cost of Capital’ ? What are the basic


    characteristics of ‘Cost of Capital’ ? Discuss the
    different classes of Cost of Capital.

    MMPC-014 1 P.T.O.
    5. What is ‘Money Market’ ? What is its significance ?
    Discuss different participants in the Money
    Markets.

    6. Why is Dividend decision important for a firm ?


    Discuss different forms of Dividends.

    7. What is Financial Restructuring ? Discuss


    ‘Buy-back of Shares’ as a method of financial
    restructuring.

    8. Cimbla Ltd. is considering investing in a project.


    The expected original investment in the project
    will be < 2,00,000, the life of the project will be
    5 years with no salvage value. The expected net
    cash inflows after depreciation but before tax
    during the life of the project will be the following :
    Year 1 2 3 4 5
    < 85,000 1,00,000 80,000 80,000 40,000
    The project will be depreciated at the rate of
    20% on original cost. The company is subjected to
    30% tax rate.
    Required :
    (a) Calculate Payback Period.
    (b) Calculate Net Present Value and
    Profitability Index, if cost of capital is 10%.
    The P.V. factors at 10% are :
    Year 1 2 3 4 5
    0909 0826 0751 0683 0621

    MMPC-014 2

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