MMPF-002 Capital Investment and Financing Decisions Solved Question Paper December 2022

MMPF-002 Capital Investment and Financing Decisions Solved Question Paper December 2022

Capital Investment and Financing Decisions
Course Code: MMPF-002

MASTER OF BUSINESS ADMINISTRATION

Term-End Examination
December, 2022

MMPF-002 : CAPITAL INVESTMENT AND

FINANCING DECISIONS

Time : 3 hours Maximum Marks : 100
Weightage 70%

Note : (i) Attempt any five questions.
(ii) All questions carry equal marks.

1. Discuss the nature of financial decisions and
explain the inter-relationship among these
decisions.
2. What do you understand by ‘Cost of Capital’ ?
How is the cost of long-term debt and equity
share capital computed ?
3. Discuss the distinguishing features of a project.
Explain the concept of project life cycle and
discuss the unique characteristics of each stage
of project life cycle.

4. What is Capital Budgeting ? How are the cash
flows for capital budgeting estimated ? Briefly
explain the discounted cash flow techniques used
for evaluating investment proposal.
5. What is ‘Project Control’ ? Explain the types of
control processes and specify the information
requirement for application of each of these
processes.
6. Explain the following :
(a) Certainty Equivalents
(b) Monte Carlo Simulation
7. Who are the Stakeholders of a company ? What
type of information is demanded by the different
stakeholders and in what aspects does this
information differ for different stakeholders ?
8. What is Corporate Restructuring ? Explain the
dimensions of restructuring. How is merger
assessed as a source of value addition ?
9. What are the major global sources of financing a
project ?