IGNOU MMPC-14 (January 2026 – July 2026) Assignment Questions
1. “Operating leverage is double edged weapon.” Do you agree with this statement? Justify.
2. Why is cost of capital important for a firm? Discuss, with examples, different methods of computing Cost of Equity capital.
3. What is capital budgeting? Why it is needed? Discuss any two methods of capital budgeting.
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.
IGNOU MMPC-14 (January 2025 – July 2025) Assignment Questions
1. What is Capital Market? How it is different from Money Market? Write a detailed note on participants in Capital Market.
2. What is dividend and why dividend decision is one of the important functions of a financial management? Discuss the factors that should be taken into consideration before finalizing a company’s dividend policy.
3. Define the term capital structure. Make a comparative assessment of different types of securities from the point of view of capital structuring.
4. A firm is currently paying a dividend of INR 5/- per share whereas face value per share is INR 10/-. The rate of dividend is expected to grow at 6% per annum for next 4 years and at 8% per annum thereafter which will continue till infinity. Find the value of the share, if the required rate of return in the market is 14%.
5. How is Behavioral Finance different from Traditional Finance? Explain the various cognitive biases and give the reasons for the irrational behavior of investors.