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    MMPMC 014

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    Ashvanee Kr. Pathak
    This document is a 3 page exam for a Master of Business Administration/Master of Business Finance degree. It contains 8 questions related to financial management topics. The questions cover concepts like future and present value, valuation, cost of equity capital, capital structure, behavioral finance biases, and capital budgeting techniques like payback period, net present value, and profitability index. Students are instructed to attempt any 5 of the 8 questions in their 3 hour exam.

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    MMPMC 014

    Uploaded by

    Ashvanee Kr. Pathak
    62 views3 pages
    This document is a 3 page exam for a Master of Business Administration/Master of Business Finance degree. It contains 8 questions related to financial management topics. The questions cover concepts like future and present value, valuation, cost of equity capital, capital structure, behavioral finance biases, and capital budgeting techniques like payback period, net present value, and profitability index. Students are instructed to attempt any 5 of the 8 questions in their 3 hour exam.

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    MMPmC-014

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    This document is a 3 page exam for a Master of Business Administration/Master of Business Finance degree. It contains 8 questions related to financial management topics. The questions cover concepts like future and present value, valuation, cost of equity capital, capital structure, behavioral finance biases, and capital budgeting techniques like payback period, net present value, and profitability index. Students are instructed to attempt any 5 of the 8 questions in their 3 hour exam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    62 views3 pages

    MMPMC 014

    Uploaded by

    Ashvanee Kr. Pathak
    This document is a 3 page exam for a Master of Business Administration/Master of Business Finance degree. It contains 8 questions related to financial management topics. The questions cover concepts like future and present value, valuation, cost of equity capital, capital structure, behavioral finance biases, and capital budgeting techniques like payback period, net present value, and profitability index. Students are instructed to attempt any 5 of the 8 questions in their 3 hour exam.

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    You are on page 1of 3

    No.

    of Printed Pages : 3 MMPC-014

    MASTER OF BUSINESS

    ADMINISTRATION/MASTER OF

    BUSINESS FINANCE

    (BANKING/FINANCE) (MBA/MBF)

    Term-End Examination

    June, 2022
    MMPC-014 : FINANCIAL MANAGEMENT

    Time : 3 Hours Maximum Marks : 100

    Note : (i) Attempt any five questions.

    (ii) All questions carry equal marks.

    1. Explain the nature of Finance Function and

    discuss the approaches of Financial

    Management.

    P. T. O.
    [2] MMPC-014

    2. Explain the concept of ‘Future ‘Value’ and


    describe how it is calculated. Bring out the
    difference between Future Value and Present
    Value.

    3. What is the need for Valuation ? What is the


    genesis of it ? Explain the various ways in
    which term value can be defined.

    4. Why is Cost of Equity Capital difficult to


    measure ? Discuss the different methods of
    computing Cost of Equity Capital.

    5. Discuss Equity Capital and Debt Capital as


    sources of long-term capital bringing out
    the advantages and disadvantages of each
    source.

    6. What is the meaning of ‘Behavioural Finance’ ?


    Discuss any five biases that influence
    investment decisions of an investor.

    7. Explain the concept of Capital Structure.


    Discuss the various determinants of a capital
    structure.
    [3]

    8. Aravind Motors Ltd. is considering two


    mutually exclusive projects. Both require an
    initial cash outlay of ` 10,000 each for
    machinery and have a life of 5 years. The
    company’s required rate of return is 10% and it
    pays tax at 50%. The projects will be
    depreciated on a straight-line basis. The net
    cash flows (before taxes) expected to be
    generated by the projects and present value
    (PV) factor (at 10%) are as follows :

    PV factor (at
    Year Project 1 Project 2
    10%)

    1 4,000 6,000 0.909


    2 4,000 3,000 0.826
    3 4,000 2,000 0.751
    4 4,000 5,000 0.683
    5 4,000 5,000 0.621

    You are required to calculate and suggest which


    project is better under :
    (i) the Pay Back Period method
    (ii) the NPV and Profitability Index methods.
    MMPC–014

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