Description
TUTOR MARKED ASSIGNMENT
Course Code : MCO-07
Course Title : Financial Managements
Assignment Code : MCO-07/TMA/2023
Coverage : All Blocks
Maximum Marks : 100
Attempt all the questions.
Question 1) (a) “Investment, financing and dividend decisions are all interrelated” comment. (10+10)
Question 1) (b) What is time value of money? Discuss its relevance in financial decision making.
Question 2) Discuss the different approaches for valuation of equity shares.
Question 3) A company is considering the following investment projects.
| Projects | Initial Investment | Cash Flows (Rs.) | ||
| A | 10,00,000 | 12,00,000 | 8,00,000 | Nil |
| B | 10,00,000 | 8,00,000 | 10,00,000 | 12,00,000 |
| C | 10,00,000 | 3,00,000 | 5,00,000 | 5,00,000 |
| D | 10,00,000 | 10,00,000 | 6,00,000 | 3,00,000 |
Find out payback period, and net present value and rank the projects according to them. Assume discount rate 10% and 20%.
Question 4) (a) What is operating leverage and financial leverage? What is their significance? (10+10)
Question 4) (b) Firm ‘A’ has a annual sale of Rs 80,00,000 and variable cost is Rs 50,00,000. Fixed cost is Rs 5,00,000 per year. Company has 11% debentures of Rs 30,00,000. Find out operating leverage and financial leverage of the firm.
Question 5) (a) Discuss M & M preposition I of capital structure.
Question 5) (b) What is credit policy? Explain its variables.
Validity:
These assignments are valid for two admission cycles (July 2023 and January 2023). Validity is given below:
1. Those who are enrolled in January 2023, it is valid upto June 2023 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th March 2023
2. Those who are enrolled in July 2023, it is valid upto December 2023 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th September 2023
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