MCO-07 Solved Assignment 2020-21 | Financial Managements | English Medium

Description

University :	IGNOU
Program :	MCOM (2nd Year)
Course Code :	MCO-7
Course Title :	Financial Managements
Medium :	English
Max Marks :	100
Weightage :	30%
Session :	July 2020 and January 2021 (2020-21)
Last Date of Submission :	15th March, 2021 (for July 2020 session) 15th September, 2021 (for January 2021 session)
Solution Type :	Softcopy (PDF File)

TUTOR MARKED ASSIGNMENT

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Course Code	: MCO-07
Course Title	: Financial Managements
Assignment Code	: MCO-07/TMA/2020-21
Coverage	: All Blocks

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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? (3+7)
   (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.