Download GTU (Gujarat Technological University) MBA 2019 Winter 4th Sem 2840201 Mergers And Acquisition Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840201 Date: 30-11-2019
Subject Name: Mergers & Acquisition
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
(a)
Which of the following restructuring activities does not result in an expansion of a
firm?
06
1. A. Joint
Ventures
B. Mergers
C. Divestitures D. Acquisitions
2. Which of the following activities does not involve a change in
the ownership structure?
A. Share
Repurchase
B. Going Private
C. Leveraged
Buyout
D Proxy Contest
3. Which of the following is referred to as ?a going private
transaction? initiated by incumbent management?
A. Management
Buyout
B. Leveraged Cash out
C. Management
Buy-in
D. Leveraged
Recapitalization
4. A transaction which forms one economic unit from two or
more previous units is called
A. Joint
Venture
B. Merger
C. Corporate
Control
D. Divestiture
5. Firm X plans to sell off a part of the firm via an equity offering
to outsiders. Which of the following means shall be applied by
the company for executing its plan?
A. Equity
Carve-out
B. Spin-off
C. Split-Up D. Divestiture
6. Changes in the company byelaws to make the acquisition of a
company more difficult or more expensive are referred to as
A. Takeover B. Anti-takeover
Amendments
C. Corporate
Control
D. Proxy Contests
Q.1 (b) 1) Book Value
2) Spin-off
3) Parachute
4) Takeover
04
FirstRanker.com - FirstRanker's Choice
1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840201 Date: 30-11-2019
Subject Name: Mergers & Acquisition
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
(a)
Which of the following restructuring activities does not result in an expansion of a
firm?
06
1. A. Joint
Ventures
B. Mergers
C. Divestitures D. Acquisitions
2. Which of the following activities does not involve a change in
the ownership structure?
A. Share
Repurchase
B. Going Private
C. Leveraged
Buyout
D Proxy Contest
3. Which of the following is referred to as ?a going private
transaction? initiated by incumbent management?
A. Management
Buyout
B. Leveraged Cash out
C. Management
Buy-in
D. Leveraged
Recapitalization
4. A transaction which forms one economic unit from two or
more previous units is called
A. Joint
Venture
B. Merger
C. Corporate
Control
D. Divestiture
5. Firm X plans to sell off a part of the firm via an equity offering
to outsiders. Which of the following means shall be applied by
the company for executing its plan?
A. Equity
Carve-out
B. Spin-off
C. Split-Up D. Divestiture
6. Changes in the company byelaws to make the acquisition of a
company more difficult or more expensive are referred to as
A. Takeover B. Anti-takeover
Amendments
C. Corporate
Control
D. Proxy Contests
Q.1 (b) 1) Book Value
2) Spin-off
3) Parachute
4) Takeover
04
2
Q.1 (c) Write a note on Joint Venture 04
Q.2 (a) What is Corporate restructuring? What are the different motives of
restructuring?
07
(b) Discuss the provisions related to Mergers and Acquisition given in Income
Tax Act, 1961.
07
OR
(b) Briefly discuss the important provisions of SEBI guidelines related with
Share Buyback for Indian companies.
07
Q.3 (a) What are the advantages & disadvantages of ESOP? 07
(b) ?Mergers create benefits of economies of scale and synergy? discuss this
statement?
07
OR
Q.3 (a) Discuss reasons and types of Strategic Alliance?
07
(b) Discuss provision related to the powers of court in India with respect to
approval of the scheme of amalgamation in companies act. ?
07
Q.4 (a) Define Due Diligence and describe the types and challenges faced in India. 07
(b) Discuss the reasons for failure of Mergers 07
OR
Q.4 (a) Explain Methods of Payment Consideration in Deal Structuring of M&As. 07
(b) Describe various anti-takeover strategies used by Indian companies to protect
themselves from undesirable takeover.
07
Q.5 Eagle ltd reported a profit of 77 lakhs Rs after 30% tax for the financial year
2017-18. An analysis of the accounts revealed that the income included
extraordinary items of 8 lakhs Rs and an extraordinary loss of Rs 10 lakhs.
The existing operations, except for the extraordinary items, are expected to
continue in the future. In addition, the results of the launch of new product
are expected to be as follows:
Particulars Rs in
Lakhs
Sales 70
Material Cost 20
Labour Cost 12
Fixed Cost 10
You are required to:
1) Calculate the value of the business, given that the capitalization rate is
14%
2) Determine the market price per equity share, with Eagle ltd?s share
being comprised of 1,00,000, 13% preference shares of Rs 100 each
and 50,00,000 equity shares of Rs 10 each and the P/E ratio being 10
times
14
OR
FirstRanker.com - FirstRanker's Choice
1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840201 Date: 30-11-2019
Subject Name: Mergers & Acquisition
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
(a)
Which of the following restructuring activities does not result in an expansion of a
firm?
06
1. A. Joint
Ventures
B. Mergers
C. Divestitures D. Acquisitions
2. Which of the following activities does not involve a change in
the ownership structure?
A. Share
Repurchase
B. Going Private
C. Leveraged
Buyout
D Proxy Contest
3. Which of the following is referred to as ?a going private
transaction? initiated by incumbent management?
A. Management
Buyout
B. Leveraged Cash out
C. Management
Buy-in
D. Leveraged
Recapitalization
4. A transaction which forms one economic unit from two or
more previous units is called
A. Joint
Venture
B. Merger
C. Corporate
Control
D. Divestiture
5. Firm X plans to sell off a part of the firm via an equity offering
to outsiders. Which of the following means shall be applied by
the company for executing its plan?
A. Equity
Carve-out
B. Spin-off
C. Split-Up D. Divestiture
6. Changes in the company byelaws to make the acquisition of a
company more difficult or more expensive are referred to as
A. Takeover B. Anti-takeover
Amendments
C. Corporate
Control
D. Proxy Contests
Q.1 (b) 1) Book Value
2) Spin-off
3) Parachute
4) Takeover
04
2
Q.1 (c) Write a note on Joint Venture 04
Q.2 (a) What is Corporate restructuring? What are the different motives of
restructuring?
07
(b) Discuss the provisions related to Mergers and Acquisition given in Income
Tax Act, 1961.
07
OR
(b) Briefly discuss the important provisions of SEBI guidelines related with
Share Buyback for Indian companies.
07
Q.3 (a) What are the advantages & disadvantages of ESOP? 07
(b) ?Mergers create benefits of economies of scale and synergy? discuss this
statement?
07
OR
Q.3 (a) Discuss reasons and types of Strategic Alliance?
07
(b) Discuss provision related to the powers of court in India with respect to
approval of the scheme of amalgamation in companies act. ?
07
Q.4 (a) Define Due Diligence and describe the types and challenges faced in India. 07
(b) Discuss the reasons for failure of Mergers 07
OR
Q.4 (a) Explain Methods of Payment Consideration in Deal Structuring of M&As. 07
(b) Describe various anti-takeover strategies used by Indian companies to protect
themselves from undesirable takeover.
07
Q.5 Eagle ltd reported a profit of 77 lakhs Rs after 30% tax for the financial year
2017-18. An analysis of the accounts revealed that the income included
extraordinary items of 8 lakhs Rs and an extraordinary loss of Rs 10 lakhs.
The existing operations, except for the extraordinary items, are expected to
continue in the future. In addition, the results of the launch of new product
are expected to be as follows:
Particulars Rs in
Lakhs
Sales 70
Material Cost 20
Labour Cost 12
Fixed Cost 10
You are required to:
1) Calculate the value of the business, given that the capitalization rate is
14%
2) Determine the market price per equity share, with Eagle ltd?s share
being comprised of 1,00,000, 13% preference shares of Rs 100 each
and 50,00,000 equity shares of Rs 10 each and the P/E ratio being 10
times
14
OR
3
Q.5 MK ltd is considering acquiring NN ltd. The following information is
available:
Company Earnings
after Tax
(Rs)
No of Equity Share Market Value Per Share (Rs)
MK Ltd 60,00,000 12,00,000 200
NN Ltd 18,00,000 3,00,000 160
Exchange of equity shares for acquisition is based on current market value as
above. There is no synergy advantage available.
1) Find the earning per share for the company MK Ltd after merger, and
2) Find the exchange ratio so that shareholders of NN Ltd would not be
at a loss.
14
*************
FirstRanker.com - FirstRanker's Choice
This post was last modified on 19 February 2020