IGNOU MCO-07 QUESTION PAPER WITH SOLUTION FOR EXAM PREPARATION

Calculate the future value of Rs.1,00,000 if you deposit in the bank at 6% per annum rate of interest for 5 years.

A fixed deposit has a maturity value of Rs. 1,50,000 initially purchased of Rs.1,00,000 for 3 years. Calculate simple interest rate per year? 10+5+5

What are the motives for holding cash and inventory? Point out the differences and similarities between these motives.

What is the degree of operating leverage and how can it be used for determining the capital structure?

What do you understand by Time Value of Money? Discuss its relevance in Financial decision making?

What is Capital Budgeting? Explain the nature and types of capital Budgeting decisions? Why do you think that capital budgeting decisions are important for the firm?

Discuss the concept of ‘risk’ and ‘return’. 10+10

Explain Yield to Maturity Model (YTM) with an example?