Description
TUTOR MARKED ASSIGNMENT
Course Code : MCO – 07
Course Title : Financial Management
Assignment Code : MCO – 07/TMA/2020-21
Coverage : All Blocks
Maximum Marks: 100
Attempt all the questions:
Question 1. (a) What is financial management? What are its basic functions?. (2+12)
Question 1. (b) Discuss the concept of ‘risk’ and return’’.
Question 2. (a) Discuss the features of an appropriate capital structure of a company. (10)
Question 2. (b) Explain the various factors that influence the working capital requirements of a business.(10)
Question 3. (a) What is money market? What are its characteristics? (3+7)
Question 3. (b) Discuss the ‘Capital Asset Price Model’. (10)
Question 4. A company is considering the purchase of a machine. There are two machines ‘X’ and ‘Y’. The cost of these machines is Rs. 40,000 each. The earnings after tax are as given below :
| Year | Machine ‘X’ (Rs.) | Machine ‘Y’ (Rs.) |
| 1 | 12,000 | 4,000 |
| 2 | 16,000 | 12,000 |
| 3 | 20,000 | 16,000 |
| 4 | 12,000 | 24,000 |
| 5 | 8,000 | 16,000 |
Calculate :
(a) Payback period method
(b) Net present value method
Evaluate the alternatives ‘X’ or ‘Y’ according to these methods. The rate of discount is 10%.
Question 5. A firm has a sales of Rs. 60,00,000, variable cost is 20% on sales, fixed cost is Rs. 20,50,000 and debentures of Rs. 8,00,000 at 10% rate of interest. Calculate Operating leverage, financial leverage and combined leverage.
Validity:
These assignments are valid for two admission cycles (July 2020 and January 2021). Validity is given below:
1. Those who are enrolled in July 2020, it is valid upto June 2021 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th March 2021
2. Those who are enrolled in January 2021, it is valid upto December 2021 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th September 2021
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