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    MMPC 014

    Uploaded by

    Pawan Shokeen
    This document contains two exam papers for the Master of Business Administration/Master of Business Finance (Banking/Finance) program. The June 2022 exam paper contains 8 questions on topics related to financial management, including the nature of finance function, future and present value, valuation, cost of equity capital, sources of capital, behavioral finance biases, and a capital budgeting case study comparing two projects using various methods. The December 2022 exam paper also contains 8 questions, covering financial decisions, investment risk, valuation process, cost of capital, money markets, dividend decisions, financial restructuring, and another capital budgeting case study calculating payback period, net present value, and profitability index.

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    © All Rights Reserved
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    MMPC 014

    Uploaded by

    Pawan Shokeen
    216 views6 pages
    This document contains two exam papers for the Master of Business Administration/Master of Business Finance (Banking/Finance) program. The June 2022 exam paper contains 8 questions on topics related to financial management, including the nature of finance function, future and present value, valuation, cost of equity capital, sources of capital, behavioral finance biases, and a capital budgeting case study comparing two projects using various methods. The December 2022 exam paper also contains 8 questions, covering financial decisions, investment risk, valuation process, cost of capital, money markets, dividend decisions, financial restructuring, and another capital budgeting case study calculating payback period, net present value, and profitability index.

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    MMPC-014

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    This document contains two exam papers for the Master of Business Administration/Master of Business Finance (Banking/Finance) program. The June 2022 exam paper contains 8 questions on topics related to financial management, including the nature of finance function, future and present value, valuation, cost of equity capital, sources of capital, behavioral finance biases, and a capital budgeting case study comparing two projects using various methods. The December 2022 exam paper also contains 8 questions, covering financial decisions, investment risk, valuation process, cost of capital, money markets, dividend decisions, financial restructuring, and another capital budgeting case study calculating payback period, net present value, and profitability index.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    216 views6 pages

    MMPC 014

    Uploaded by

    Pawan Shokeen
    This document contains two exam papers for the Master of Business Administration/Master of Business Finance (Banking/Finance) program. The June 2022 exam paper contains 8 questions on topics related to financial management, including the nature of finance function, future and present value, valuation, cost of equity capital, sources of capital, behavioral finance biases, and a capital budgeting case study comparing two projects using various methods. The December 2022 exam paper also contains 8 questions, covering financial decisions, investment risk, valuation process, cost of capital, money markets, dividend decisions, financial restructuring, and another capital budgeting case study calculating payback period, net present value, and profitability index.

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    25._June_2022 MMPC-014.

    pdf
    26._Dec_2022 MMPC-14.pdf
    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
    No. of Printed Pages : 2 MMPC-014

    MASTER OF BUSINESS
    ADMINISTRATION/MASTER OF BUSINESS
    FINANCE (BANKING/FINANCE) (MBA/MBF)
    Term-End Examination
    December, 2022

    MMPC-014 : FINANCIAL MANAGEMENT

    Time : 3 hours Maximum Marks : 100

    Note : Attempt any five questions. All questions carry


    equal marks.

    1. Discuss different types of Financial Decisions


    that are taken in an organisation.

    2. What is the meaning of Investment Risk ?


    Explain briefly the various sources of risk in
    investments.

    3. Explain the need for ‘Valuation’. Describe the


    Three-Step (EIC) Valuation Process.

    4. What is ‘Cost of Capital’ ? What are the basic


    characteristics of ‘Cost of Capital’ ? Discuss the
    different classes of Cost of Capital.

    MMPC-014 1 P.T.O.
    5. What is ‘Money Market’ ? What is its significance ?
    Discuss different participants in the Money
    Markets.

    6. Why is Dividend decision important for a firm ?


    Discuss different forms of Dividends.

    7. What is Financial Restructuring ? Discuss


    ‘Buy-back of Shares’ as a method of financial
    restructuring.

    8. Cimbla Ltd. is considering investing in a project.


    The expected original investment in the project
    will be < 2,00,000, the life of the project will be
    5 years with no salvage value. The expected net
    cash inflows after depreciation but before tax
    during the life of the project will be the following :
    Year 1 2 3 4 5
    < 85,000 1,00,000 80,000 80,000 40,000
    The project will be depreciated at the rate of
    20% on original cost. The company is subjected to
    30% tax rate.
    Required :
    (a) Calculate Payback Period.
    (b) Calculate Net Present Value and
    Profitability Index, if cost of capital is 10%.
    The P.V. factors at 10% are :
    Year 1 2 3 4 5
    0909 0826 0751 0683 0621

    MMPC-014 2

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