IGNOU MCO 07 SOLVED ASSIGNMENT 2019-20

IGNOU MCom Assignment

MCO-07

TUTOR MARKED ASSIGNMENT

Course Code: MCO - 07

Course Title: Financial Managements

Assignment Code: MCO - 07/TMA/2019-20

Coverage: All Blocks

Maximum Marks: 100

Attempt all the questions.

1. (a) Describe the three broad areas of financial decision making. (10)

(b) Discuss the role and challenges of the financial manager in India. (10)

2. (a) What is an annuity? Explain and illustrate how is future value of an annuity determined. (3+7)

(b) What are capital budgeting decisions? How is cost of capital relevant in capital budgeting decisions? (5+5)

3. The following are the details of a firm:

Particulars                           Amount

Sales                                      85,00,000

Variable Cost                        52,00,000

Fixed Cost                            7,00,000

Debts                                    55,00,000 (9%)

Equity Capital                      65,00,000

Calculate its operating, financial and combined leverage. What will be its new EBIT if sales drop to `60,00,000. (20)

4. (a) What is dividend irrelevance view? What are the assumptions used by Modi Giliani and Miller in support of the irrelevance of dividends? (4+6)

(b) Discuss the determinants of divided payout ratio. (10)

5. (a) Explain the different methods of ascertaining working capital requirement. (10)

(b) What is economic order quantity? Discuss the process of its determination. (5+5)