Q.P.

Code: 33266
TIME: 2!110VJR
MARKS: 75

1. All Questions are Compulsory

Iøstructions:
2. Use of Simple Calculator is allowed

Qt. State whether the following sentences are true or false (any Eight) (8)

Investment policy is one of the objective of strategic corporatefinance

2. EVA is an accounting-based technique of measuring the performance of the company.
3. Equity and Debt are not major sourcesof finance.
Plan acts as control instruments.
4. Business
business is not a factor of factor structure.
4. Size of the
6. Dividend decision is onc of the important factor in decidingcapital structure.
uncertain.
7. Risk is
to borrower's in ability to pay the debt.
8. Default risk refer
an outside management
9. Management buyout means the purchase of a business by
examining all the material facts of a deal.
10.Due diligence is a process of
(7)
following (any Seven)
QI. B. Match the
Column A Column B
a) Interest
l. TM b Last claimants
2. Maturii c No Volatilit
3. Debentures d) Sta ein lifec cle
4. E uit Shareholders e) Qualit awareness
5. Zero Beta f) Protection
6. Goodwill market rice.s
) Chan e in
7. Credit VaR h) Risk free
8. Hed e i) Worst Loss
Asset
9. Market Risk ) Intan ible
10. Bank De osit
making? Explain briefly (8)
financial decision
significance of strategy in
the
Q2.A.What are
Maximization.
on Wealth
02. B. Write a note (8)

and strategic costing. (7)

traditional costing advantagesand disadvantages.
(22.C. Discuss with its
Explain Zero based budgeting (8)
02. D.

sources of capital,
03. A. state the various

3
Page 1 of
 Capital using,
Average Cost of
Q3. B. Determine Weighted
a. Book Value Cost ( 0/0)
b. Market Value
Market Value
Book Value (Rs.)
Sou rces 60//0
4, 60, 000
00, 000 2, 50, 000
Debt
3, 00, 000 10, 00, 000
12%
Preference
8, 00, 000
E uit
OR
affecting capital structure.
Q3. C. Explain the various factors
of a firm,
Q3. D.Following is the capital structure
Amount (Rs.)
Sources
6, 50, 000
E uit Ca ital 2, 00, 000
Retained Earnin s
3, 00, 000
Preference Shares 4, 00, 000
Debt
of finance are as follows,
The firm's after lax, cost of various sources
Sources Cost %)
E ca ital
Retained Earnin s 13%
Preference Shares
Debt 5%

Calculate Weighted Average Cost of Capital of the firm.

Q4. A. Write a note on Management Buyout. (8)

04. B. Fronj the following calculate Earnings per share (EPS) for both the companies,
Particulars ABC Ltd. XYZ Ltd.
E uit Share Ca ital Rs. 10 each) 4, 0(), 000 6, 00, 000
Preference Share Capital (Rs. 3, 00, 000 3,50, 000
10 each
8% Debentures 2, 00, 000 2, 50, 000
EBIT 3, 10, 000 3, 42, 000
Tax Bracket 50%
(7

OR
04. C. What is due diligence? Explain its needs.
Q4. D. Write a note on Managejnent Buy-Ins.
Page 2 of 3

E89Cl
 33266
Q.P. code:

X. Discuss the steps in Credit Analysis. (15)

Explain various technique to manage default risk.
OR
(15)
the (any three)

l. Qualitycosting
Cost reduction
Market approach
4. Long Hedge
Value based management

3
page 3 of
 Dtrategic
Corporate Finance

TIME: 2! HOUR
MARKS: 75

lostructions:1. All Questions are Compulsory

2. Use of Simple Calculator
is allowed

(21.A. State whether the following sentences arc

true or false (any Eight) (8)
1. strategies are based on theoretical
knowledge.
2. Expansion is a corporate strategy.
3. At maturity stage sales increases.
4. Indirect Material is operating cost.
5. competitive advantage is discovering
what customers want and then satisfying the
customers.
6. Capital structure is organisation structure
of a company.
7. Traditional approach assumes that optimum
capital structure exists.
8. Dividend on preference shares is adjust3ed
fortaxes to get their cost.
9. All sources of capital have same cost.
10. Counterparty risk is to each party of the contract.

Q]. B. Match the following (any Seven) (7)

I Unsystematic risk Weighted average cost of capital
2 PPP b Shows solvency
3 Proper infrastructure c required for economic growth of the nation
4 Example of Goal reduce cost for 10%
5 Debt Equity ratio e Optimum Capital Structure does not exist
6 Implicit Cost Internal Rate ofReturn
7 Composite Cost g Fluctuating
8 MM Approach h Equity
9 Equity Dividend i Collaborationbetween public and private sector
10 Risk Capital j At a micro level

Q2. A. Explain the concept of Wealth Maximization and Economic Value Addition. (8)

Q2. B. What is Strategic Cost Management? Differentiate between Traditional Costing and
ActivityBased Costing. (7)

OR

02. C. What is Strategic Corporate Finance? Explain its Functions. (8)

Phases of Life Cycle Costing. (7)

I). What is Life Cycle Costing? Explain the different
Page 1 of 3
 guc
Corporate
Vinance

Q.P. Code: 33265

what is Public Private Partnership?

Explainits relevance.
(8)
NdakersCo Ltd. has following capital
structure. (7)
Particulars
Amount
Shares (400000 shares)
collltnon 80, 00, 000
preferenceshares 20.00.000
600
Debentures 60, 00, 000
Total l, 60, 00, 000
cost of Equity is and Cost of Debt
The after Tax is 5.2%. Compute WACC
OR
C. NVhatis the difference between Dividend
Pay-out policy and Share Repurchase
PO
licy? (8)

Q3.1).Find the W ACC from the following information (7)

given by a company.
ital
E ui share ca Rs. 5 Lakhs
reference share ca ital Rs. 3 Lakhs
9%Debentures Rs. 2 Lakhs
Assumea cost of equity 16% and tax rate of 30%.

(8)
Q4.A. What is Financial Due Diligence of a company?
(7)
(24.B. Following information given from Gross Ltd and Net Ltd books.

Particulars Gross Ltd (In Net Ltd (In

Lakhs Lakhs
2000 400
Earnin o after tax
No of Shares 200 IOO
10 5
P/E Ratio
Ltd.
Calculatethe EPS for both Gross Ltd and Net
OR

in detail.
Q4.C. Explain Management Buyouts
Ltd and Mask Ltd. (7)
04. D.Following information is of Mark
Mark Ltd Mask Ltd
Particulars 6 oo 000
E uit (No of Shares) 15 oo 000
000 24 oo 000
NPAT 75 oo
Rs 45 Rs 24
Market Price
Findthe EPS for both Companies.

Page 2 of 3
 Code: 11504/ Strategic Corporate Finance
33265
Q.P. codez

(8)
of risk.
is credit risk management? Explain the different types
(l)
of clefault risk.
13.
Write a note
OR
(15)
followin an three
Nossverthe
VAR
CompanyValuation
Irrelevant Cost
Relevant VS
3 Private Partnersllip
4. public Sources of Capital
5 Different

3
page 3 of
 Paper / Subject Code: 11504
/ Strategic Corporate Finance

Ilours) (Total Marks : 75)

Please check whether you
have got the right question paper.
1. All questions are compulsory
N.B.:
2. Use of simple calculator is allowed

QI. A. True or False (any eight) (08)

planning is thinking before the action
takes place
2. Managements most important
mission is to maximize shareholders wealth
3. Merger is not a strategy
4. Equity shares are risky
5. Dividend on equity capital is always fixed
6. Capital structure combines debt and equity
7. PPP generates revenue by selling assets
and collection of tax
8. P/E ratio refers to price eligibility ratio
9. Goodwill is an intangible asset
10.Intrinsic value is known as net asset value

QI. B. Match the following (any seven) (07)

Column A Column B
l. Strate ies a) External analysis
2. Master ame Ian b) Modern method of costing
3. Com etitors Anal sis c) Last claimant
4. Tar et Costin d) Strateo
5. Equity Shareholders e) Dynamic
6. Interest on debentures f) David Durant
7. Preference shareholders g) Future maintained rotit
8. NI Approach h) Wotth Loss
9. EMP i) No votino right
10. Credit War Tax benefit

Q2. A. Distinguish between strategy and planning. (08)

Q2 B. Discuss the difference between traditional costing and strategic costing (07)
OR
(02. C. Explain
l. Zero based budgeting
2, Cost reduction technique

Q3. A, Discuss various factors of cost of capital (08)

Q3, B. Determine weighted average cost of capital using a. Book value b. Market value (07)

Sources Book Value Market Value cost

Debt 5, oo,ooo 4, 00, 000
Preference Shares 2, 80, 000 3, 50, 000
uit Share 7, 50, 000 12, 00, 000
OR
66458 Page 1 of 2

A D5AOAEF-S28E67CAA
 Paper
/ Subject code:
11504/ Strategic
Corporate Finance
A_ V.'rite a note on Infrastructure
bonds
B_ From the following capital (08)
structure of a firm
(07)
•urces Amount (rs-)
After tax cost
EcJiT_v 4, SO.000
Earnings 3.80.000
Preference s. 00.000
6, 00, 000
CalculateWACC of firm
A. \Vrite a note on Management
Buy In
(08)
B. Calculate value of business
from the followinz information
(07)
ShareCapital (RS. 100) 50.00, 000
MPS 150
I Cashat Bank 10 00, 000
Debtors 3, 00.000
Stock 4, 00, 000
Creditors 2, 50, 000
Bills Payables 2, 00, 000
Bank Overdraft l, 50, 000
OR
Q4-A- Write a note on Management Buy out and its needs (08)
(24.B. From the following information calculate EPS for both the companies (07)
Sources PQR ltd. XYZ Ltd.
Equityshare capital 5, 00, 000 s, 00, 000
CRS. 10 each)
10%Prefernce share 4, 00, 000 4, 50, 000
capital
8% Debentures 2, 00. 000 3, 00, 000
EBIT 3, 50, 000 4, 00, 000
50 %
Q5 A. Explain various techniques to manage default risk and business risk
OR
Q5.Write short note on (any three)
l. Target costing
2. ppp
3. Value addition
4. Dividend policy
5. Unexpected Loss

66458 Page 2 of 2

D5AOAEF528E67CAA
A 148A07D48C3F401
 Paper / Subject Code: f VI-NT
85405/ Strategic Corporate Finance

TIME: 2% Ilours Total Marks: 75

Instructions: 1. All Questions are Compulsory

2. Use of Simple Calculator
is allowed
Qt. A. Match the following (any Eight)
(8)
COLUMN A
1 MVA COLUMN B
A Retained Earnin s
2 In-elevantCost
Act as a catal st econom
3 Zero based budgetino
C Sunk Cost
4 Source of Lono term finance
ppp D True or fair
E Workin start from level zero
6 Walter's Model F Business modellingand lannin techni ue
What if Scenario G Market Ca -- Book Value Of net worth
S Audit Re ort Il Credit Risk
9 Default Risk I Finance Due Di i ence
10 FDD J Theo of dividend olic

Qt. B. State whether True or False (any Seven) (7)

1. EVA is inversely related to shareholders.
2. Strategic planning horizon rarely exceeds 2 years,
3. Life cycle costing ascertains the costofproductover its projectedlife.
4. Business plan acts as a control instrument.
S. Commercial paper is a money marketinstrument.
6. Illiquid refer to the state of a security that can be easily)sold.
7. Hedging is used to reduce risk
8. The net capital expenditures are the difference between capital expenditures and
depreciations
9. MBO refers to management buy opinion.
10. Due diligence is typically balance sheet focused.
(8)
Q2. A Define Strategic Corporate Finance, Explain its scope.
(7)
Q2. B. Write a short note on financial planning?
OR
(8)
02. C. Write a short note on Life cycle costing.
(7)
Q2. D. Explain the concept of Quality Costing
(8)
(23. A. What are the determinants of capital structure?
(7)
03. B. Explain What-Jf scenario
OR

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ED63F51
 Paper / Subject
Code: 85405/ Strategic Corporate Finance

(23. C. M/S. Priti Ltd. has the

following capital
structure:
Equity Capital (Rs. 100
each) Rs. 15, 00, 000
8% Preference Shares
Rs. 10, 00, 000
10% Debentures
Rs. 15, 00, 000
The company pays a dividend Rs. 5 per
growth rate of 5%. You are required share and current market price per sharejs Rs. 50 having
to calculate WACC if tax rate is 50%. (8)
Q3. D. Calculate Book value and
Market value for the following,

(Amounts 1110akhs)
Particulars Bookvalue Market value S ecificCost
E ui Share Ca ital 80 120
Preference Share Ca ital 30 20
Debentures 40 40
(7)
Q4. A. Explain the Modigliani-Millers Model, (8)

Q4. B. Explain the different company valuation approaches. (7)

OR
Q4. C. The following information ISfurnished for M/S ABC Ltd: and M/S XYZ ltd. (15)
Calculate Earnings per share (EPS) for both the companies;

Particulars ABC Ltd. XYZ Ltd.

E ui Share Ca ital (Rs.A00 each) 10, 00, 000 12, 00, 000
9% Preference Share Ca ital 3, 00, 000 3, 50, 000
7% Debentures 2, 00, 000 2,50, 000
3, 10, 000 3, 42, 000
EBIT
Tax bracket 500/0

(8)
Q5. A. Explain credit analysis and its steps.
treat it. (7)
Q5. B. What is Risk? Explain the methods to
OR
(15)
(25.Answer the following (any three)
1. Wealth Management
2. Problem with too muchcash
3. Value Enhancement tool
4. Types of Risk
5. Net Income Approach

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