MCO-07: Financial Management – 2021-22 (M.Com)

Description

TUTOR MARKED ASSIGNMENT
Course Code : MCO – 07
Course Title : Financial Management
Assignment Code : MCO – 07/TMA/2021-22
Coverage : All Blocks
Maximum Marks: 100

Attempt all the questions.

Question 1. (a) Why is cost of capital taken as minimum acceptable rate of return on an investment by the firms? Discuss. (10)
Question 1. (b) How will you calculate the cost of debt capital? Explain with example. (10)

Question 2. (a) Explain and illustrate net present value method and internal rate of return method. What are the limitations of using these methods? (12)
Question 2. (b) A company’s earnings before interest and tax is Rs. 5,00,000. The capital structure is as given below:
10% debentures   Rs. 15,00,000
12% preference shares    Rs. 3,00,000
Equity shares of 100 each    Rs. 10,00,000
The company is in the bracket of 40% tax bracket. Calculate the earnings per share and degree of financial leverage of the company. (8)

Question 3. (a) What are dividends? Are dividends irrelevant? What assumptions substantiate that dividend policy is irrelevant? (10)
Question 3. (b) Why is stock exchange an important institution of the capital market? (10)

Question 4. (a) Explain the different approaches of working capital policy. (10)
Question 4. (b) Discuss the different criteria for the selection of proper marketable securities. (10)

Question 5. (a) Discuss the objectives of inventory management. (8)
Question 5. (b) What is securitization? Explain its merits, demerits and process. (12)

Validity:

These assignments are valid for two admission cycles (July 2021 and January 2022). Validity is given below:

1. Those who are enrolled in July 2021, it is valid upto June 2022 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th March 2022

2. Those who are enrolled in January 2022, it is valid upto December 2022 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th September 2022

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