## OUR OWN PUBLICATION FROM 1ST JULY, 2018 FOR B.COM

1. B.COM FIRST SEMESTER COMPLETE NOTES (CHOICE BASED) WITH SOLVED FINANCIAL ACCOUNTING BOOK
2. B.COM 3RD SEM COMPLETE NOTES WITH SOLVED BOOKS OF:
*BUSINESS STATISTICS SOLVED PAPERS OF LAST 7 YEARS
* FINANCIAL MANAGEMENT BOOK
3. B.COM 5TH SEMESTER COMPLETE NOTES WITH SOLVED BOOKS OF MANAGEMENT ACCOUNTING OF JAIN AND NARANG

## Friday, January 10, 2014

### IGNOU SOLVED ASSIGNMENTS: MCO - 07

TUTOR MARKED ASSIGNMENT
Course Code : MCO – 07
Course Title : Financial Management
Assignment Code : MCO - 07 /TMA/2013-14
Coverage : All Blocks
Maximum Marks: 100

Attempt all the questions

1.    (a) What is Capital Budgeting? Explain in brief the various techniques of appraisal of an investment project.

(b) Consider the project with the following cash flows. Compute the net present  value of the project of the project. The rate of discount is 20%?
 Rs. in Lakhs Year 0 1 2 3 4 5 Cash flows (-)150 50 60 55 60 75

2.    (a) Explain the meaning and importance of cost of capital.
(b) Discuss the concept of ‘Risk’ and ‘Return’. (10+10)

3.   (a) What are the methods of estimating working capital requirement?
(b) Describe the motives for holding cash. (10+10)

4.   (a) A company buys 1, 00,000 units of material called ‘M’ every month. Order costs are  Rs. 200 per order and carrying costs are 10 paisa per unit per month. Find out EOQ.

(b) A firm has a sale of 2000 units. It expects to increase its sale to 2800 units. The fixed cost is Rs. 4,00,000. Calculate the degree of operating leverage of the firm if the selling price is Rs. 400 per unit and variable cost is Rs. 75 unit. (10+10)

5.    (a) What is capital structure? What are the factors that affect the choice of debt in  a capital structure?

(b) What is share buyback? Why do companies go for share buyback? (10+10)