IGNOU ASSIGNMENT COURSE CODE : MCO-07 COURSE TITLE : Financial Managements ASSIGNMENT CODE : MCO-07/TMA/2022-2023 COVERAGE : ALL BLOCKS

 

IGNOU ASSIGNMENT 

COURSE CODE : MCO-07 

COURSE TITLE : Financial Managements 

ASSIGNMENT CODE : MCO-07/TMA/2022-2023 

COVERAGE : ALL BLOCKS 

Click on Question to get Answers 

Attempt all the questions: 

1) (a) “Investment, financing and dividend decisions are all interrelated” comment. 

(b) What is time value of money? Discuss its relevance in financial decision making.

(10+10)

2) Discuss the different approaches for valuation of equity shares. (20)

3) A company is considering the following investment projects. 

Projects Initial 

Investment `

Cash Flows ( `) 

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%.

(20)

4) (a) What is operating leverage and financial leverage? What is their significance?

(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. 

(10+10)

5) (a) Discuss M & M preposition I of capital structure.

(b) What is credit policy? Explain its variables. 

(10+10)