Description
ASSIGNMENT
Course Code : MMPC-014
Course Title : Financial Management
Assignment Code : MMPC-014/TMA/JAN/2024
Coverage : All Blocks
Note: Attempt all the questions and submit this assignment to the Coordinator of your
study centre. Last date of submission for January 2024 session is 30th April, 2024
and for July 2024 session is 31st October, 2024.
1. “Investors exhibit three fundamental risk preference behaviours; risk aversion, risk
indifference, and risk seeking.” Considering the aforementioned assertion, meet with any
two retail investors and examine their behaviour in terms of risk preference by comparing
and differentiating their investing strategies.
2. Why is cost of capital important for a firm? Discuss, with examples, different methods of
computing Cost of Equity capital.
3. What is Financial Leverage and why is it called ‘Trading on Equity’? Explain the effect
of Financial Leverage on EPS with the help of an example.
4. In case of a normal Firm where, r=k, which type of Dividend Policy the firm should
follow? Identify the above dividend policy model and explain the model in detail.
5. What do you mean by ‘Corporate Restructuring’? Why do firms go for it? Discuss the
different modes of Corporate Restructuring.
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