MCO 07 Financial Management
Solved Assignment 2020-21
Maximum
Marks: 100
Attempt
all the questions:
1. (a) What
is financial management? What are its basic functions?.
(b) Discuss
the concept of ‘risk’ and return’’.
2. (a)
Discuss the features of an appropriate capital structure of a company.
(b) Explain
the various factors that influence the working capital requirements of a
business.
3. (a) What
is money market? What are its characteristics?
(b) Discuss
the ‘Capital Asset Price Model’.
4. A company
is considering the purchase of a machine. There are two machines ‘X’ and ‘Y’.
The cost of these machines is Rs. 40,000 each. The earnings after tax are as
given below :
Year |
Machine (x)
(Rs.) |
Machine ‘Y’
(Rs.) |
1 |
12,000 |
4,000 |
2 |
16,000 |
12,000 |
3 |
20,000 |
16,000 |
4 |
12,000 |
24,000 |
5 |
8,000 |
16,000 |
Calculate :
(a) Payback
period method
(b) Net
present value method
Evaluate the
alternatives ‘X’ or ‘Y’ according to these methods. The rate of discount is
10%.
5. A firm
has a sales of Rs. 60,00,000, variable cost is 20% on sales, fixed cost is Rs.
20,50,000 and debentures of Rs. 8,00,000 at 10% rate of interest. Calculate
Operating leverage, financial leverage and combined leverage.
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