MCO-07 Financial Management in English Solved Assignment 2021-2022

MCO-07 Financial Management

Solved Assignment 2021-2022

COURSE CODE : MCO-07
COURSE TITLE : Financial Management
ASSIGNMENT CODE : MCO-07/TMA/2021-2022
COVERAGE : ALL BLOCKS

Attempt all the questions:
1. (a) Why is cost of capital taken as minimum acceptable rate of return on an
investment by the firms? Discuss.
(10)
(b) How will you calculate the cost of debt capital? Explain with example. (10)
2. (a) Explain and illustrate net present value method and internal rate of return
method. What are the limitations of using these methods?
(12)
(b) A company’s earnings before interest and tax is Rs. 5,00,000. The capital
structure is as given below:

The company is in the bracket of 40% tax bracket. Calculate the earnings per share
and degree of financial leverage of the company.
Rs.
10% debentures 15,00,000
12% preference shares 3,00,000
Equity shares of 100 each 10,00,000
(8)
3. (a) What are dividends? Are dividends irrelevant? What assumptions substantiate
that dividend policy is irrelevant?
(10)
(b) Why is stock exchange an important institution of the capital market? (10)
4. (a) Explain the different approaches of working capital policy. (10)
(b) Discuss the different criteria for the selection of proper marketable securities. (10)
5. (a) Discuss the objectives of inventory management. (8)
(b) What is securitization? Explain its merits, demerits and process.

MCO-07, MCO 07, MCO07, MCO-7, MCO7, MCO 7