|Program :||MCOM (2nd Year)|
|Course Code :||MCO-7|
|Course Title :||Financial Managements|
|Max Marks :||100|
|Session :||July 2021 and January 2022 (2021-22)|
|Last Date of Submission :||15th March, 2022 (for July 2021 session)
15th September, 2022 (for January 2022 session)
|Solution Type :||Softcopy (PDF File)|
TUTOR MARKED ASSIGNMENT
|Course Code||: MCO-07|
|Course Title||: Financial Managements|
|Assignment Code||: MCO-07/TMA/2021-22|
|Coverage||: All Blocks|
Maximum marks: 100
Attempt all the questions.
- (a) Why is cost of capital taken as minimum acceptable rate of return on an investment by the firms? Discuss.
(b) How will you calculate the cost of debt capital? Explain with example.
- (a) Explain and illustrate net present value method and internal rate of return method. What are the limitations of using these methods?
(b) A company’s earnings before interest and tax is Rs. 5,00,000. The capital structure is as given below:
10% debentures 15,00,000
12% preference shares 3,00,000
Equity shares of 100 each 10,00,000
The company is in the bracket of 40% tax bracket. Calculate the earnings per share
and degree of financial leverage of the company.
- (a) What are dividends? Are dividends irrelevant? What assumptions substantiate that dividend policy is irrelevant?
(b) Why is stock exchange an important institution of the capital market?
- (a) Explain the different approaches of working capital policy.
(b) Discuss the different criteria for the selection of proper marketable securities.
- (a) Discuss the objectives of inventory management.
(b) What is securitization? Explain its merits, demerits and process.
Keywords: MCO-07, MCO-7, MCO07, MCO7, MCO 07, MCO 7