MMPF-002: Capital Investment and Financing Decisions

  1. Discuss the distinguishing features of a project and describe the project life cycle.
  2. Explain the various techniques used for measurement of project risk.
  3. What are the various global sources of financing? Discuss the salient features of depository Receipts Scheme, 2014.
  4. What do you understand by Financial Restructuring? How will you assess merger as source of value addition.
  5. Calculate the Operating Leverage, Financial Leverage and Combined Leverage from the following data under situation I and II and Financial Plan A & B.

Installed Capacity 4000 units

Actual Production & Sales 75% of the Capacity

Selling Price Rs. 30 per unit

Variable Cost Rs. 15 per unit

Fixed Cost

Under Situation I Rs. 15,000

Under Situation II Rs. 20, 000

Capital Structure

Particulars Financial Plan

A B

Equity 10,000 15,000

Debt (rate of Interest at 20%) 10,000 5,000

20,000 20,000