Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 2840201 Mergers And Acquisitions Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 2840201 Date: 04/05/2019
Subject Name: Mergers and Acquisitions
Time: 10:30 AM To 01:30 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) From the multiple choices given select the correct one: 06
1 What is the minimum size of mandatory open offer under SEBI (Substantial
acquisitions of shares and takeover) Regulation,2011
A. 24% B. 25%
C. 26% D. 27%
2. A form of restructuring involving transfer of all assets and liabilities of one
division to another company whose shares are allotted to the transferor
company and carrier on the business.
A. Spin off B. Split up
C. Split off D None of the above
3. A defense tactic in which the target company sells its highly profitable business
division to make takeover bid less attractive to the raider.
A. Poison pills B. Shark repellents
C. Blank Cheque D. Crown Jewels
4. If an automobile manufacturer were to acquire one of the firms listed below
which acquisition would be called a horizontal merger?
A. A steel mill B. A rival manufacturer
C. A tire producer D. A bank
5. The cost of merger equals the
A. Cash paid for the target
firm
B. Increase in total earnings less price
paid
C. Premium paid over the
target?s value as separate
unit
D. None of the above
6. If two merger firms are shown to have higher combined market value than the
sum of individual market values, then:
A. Economic\synergy gains
have taken place
B. The firms were previously
underpriced
C. The merger provides
diversification to investors
D. There is no cost involved in the
merger
Q.1 (b) Explain the following terms:
1. Demerger
2. Buy Back
3. Delisting
4. Joint venture
04
Q.1 (c) Explain the concept of corporate Restructuring and list the different
motives for corporate Restructuring
04
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 2840201 Date: 04/05/2019
Subject Name: Mergers and Acquisitions
Time: 10:30 AM To 01:30 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) From the multiple choices given select the correct one: 06
1 What is the minimum size of mandatory open offer under SEBI (Substantial
acquisitions of shares and takeover) Regulation,2011
A. 24% B. 25%
C. 26% D. 27%
2. A form of restructuring involving transfer of all assets and liabilities of one
division to another company whose shares are allotted to the transferor
company and carrier on the business.
A. Spin off B. Split up
C. Split off D None of the above
3. A defense tactic in which the target company sells its highly profitable business
division to make takeover bid less attractive to the raider.
A. Poison pills B. Shark repellents
C. Blank Cheque D. Crown Jewels
4. If an automobile manufacturer were to acquire one of the firms listed below
which acquisition would be called a horizontal merger?
A. A steel mill B. A rival manufacturer
C. A tire producer D. A bank
5. The cost of merger equals the
A. Cash paid for the target
firm
B. Increase in total earnings less price
paid
C. Premium paid over the
target?s value as separate
unit
D. None of the above
6. If two merger firms are shown to have higher combined market value than the
sum of individual market values, then:
A. Economic\synergy gains
have taken place
B. The firms were previously
underpriced
C. The merger provides
diversification to investors
D. There is no cost involved in the
merger
Q.1 (b) Explain the following terms:
1. Demerger
2. Buy Back
3. Delisting
4. Joint venture
04
Q.1 (c) Explain the concept of corporate Restructuring and list the different
motives for corporate Restructuring
04
2
Q.2 (a) Define the diligence as required in India.
Explain the concept and major areas to be covered
07
(b) What is the joint Venture? Explain its benefits to both the entities
involved.
07
OR
(b) With respect to Accounting Standard-14: highlight the difference between
pooling of Interest method & Purchase Method
07
Q.3 (a) What is the Buyback of Shares? Explain in detail the possible reasons for
a Buyback.
07
(b) List and explain in detail the major provisions of competition act 2002
governing combinations.
07
OR
Q.3 (a) Section 390 to 391A and 396 &396A of companies Act govern
Amalgamations. What are the provisions of each section?
07
(b) During a re-structuring exercise, what are the major methods of effecting
payment of consideration to the shareholders of the target company
07
Q.4 (a) Explain in detail various types and uses of ESOPS. What are its
advantages and disadvantages?
07
(b) What is Valuation? What are the factors to be considered for the
valuation of a business?
07
OR
Q.4
Q.4
(a)
(b)
In an Amalgamation, for the tax purposes, how are following treated?
(1) Capital Gains
(2) Carry forward \ Set of losses
(3) Unabsorbed Depreciation
Discuss in detail details the benefits of Merger as compared to Joint Venture
07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 4 ? EXAMINATION ? SUMMER 2019
Subject Code: 2840201 Date: 04/05/2019
Subject Name: Mergers and Acquisitions
Time: 10:30 AM To 01:30 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) From the multiple choices given select the correct one: 06
1 What is the minimum size of mandatory open offer under SEBI (Substantial
acquisitions of shares and takeover) Regulation,2011
A. 24% B. 25%
C. 26% D. 27%
2. A form of restructuring involving transfer of all assets and liabilities of one
division to another company whose shares are allotted to the transferor
company and carrier on the business.
A. Spin off B. Split up
C. Split off D None of the above
3. A defense tactic in which the target company sells its highly profitable business
division to make takeover bid less attractive to the raider.
A. Poison pills B. Shark repellents
C. Blank Cheque D. Crown Jewels
4. If an automobile manufacturer were to acquire one of the firms listed below
which acquisition would be called a horizontal merger?
A. A steel mill B. A rival manufacturer
C. A tire producer D. A bank
5. The cost of merger equals the
A. Cash paid for the target
firm
B. Increase in total earnings less price
paid
C. Premium paid over the
target?s value as separate
unit
D. None of the above
6. If two merger firms are shown to have higher combined market value than the
sum of individual market values, then:
A. Economic\synergy gains
have taken place
B. The firms were previously
underpriced
C. The merger provides
diversification to investors
D. There is no cost involved in the
merger
Q.1 (b) Explain the following terms:
1. Demerger
2. Buy Back
3. Delisting
4. Joint venture
04
Q.1 (c) Explain the concept of corporate Restructuring and list the different
motives for corporate Restructuring
04
2
Q.2 (a) Define the diligence as required in India.
Explain the concept and major areas to be covered
07
(b) What is the joint Venture? Explain its benefits to both the entities
involved.
07
OR
(b) With respect to Accounting Standard-14: highlight the difference between
pooling of Interest method & Purchase Method
07
Q.3 (a) What is the Buyback of Shares? Explain in detail the possible reasons for
a Buyback.
07
(b) List and explain in detail the major provisions of competition act 2002
governing combinations.
07
OR
Q.3 (a) Section 390 to 391A and 396 &396A of companies Act govern
Amalgamations. What are the provisions of each section?
07
(b) During a re-structuring exercise, what are the major methods of effecting
payment of consideration to the shareholders of the target company
07
Q.4 (a) Explain in detail various types and uses of ESOPS. What are its
advantages and disadvantages?
07
(b) What is Valuation? What are the factors to be considered for the
valuation of a business?
07
OR
Q.4
Q.4
(a)
(b)
In an Amalgamation, for the tax purposes, how are following treated?
(1) Capital Gains
(2) Carry forward \ Set of losses
(3) Unabsorbed Depreciation
Discuss in detail details the benefits of Merger as compared to Joint Venture
07
3
Q.5 Case Study
Acquisition of ETC Networks by Zee Telefilm Ltd.
18/2 /2002, Zee telefilm Limited. Acquired ETC network. ETC
network was one of India's leading TV broadcaster with two very popular
channel ? ?ETC? and ETC Punjabi: ?ETC? was Indian number one music
channel and ETC Punjabi was Indian number one channel in the Punjabi
language. ETC network had exclusive worldwide right to telecast Gurbani
(religion preaching) live from the Golden Temple, Amritsar for eleven
years. The company also had good library of film rights. During the nine
month period that ended on 31/12/2001, ETC had recorded turnover of Rs
233 million.
ZEE telefilms is Indian?s largest vertically integrated media and
entertainment company. It is the largest producer and aggregator of Hindi
programs in the world with extensive Liberty housing television content,
movie title and news content. Zee is also Indian?s largest cable distributor
through its wholly owned subsidiary ?Siti Cable ?. Zee?s channels are
widely distributed across many countries especially for South Asian
audiences. It is also significant player in the film production music
publishing and education business. During the nine month period ending
31st December 2001, Zee had recorded a turnover of Rs 8.2 billion.
Question:
(1) What is merger? Differentiate between Merger and acquisition.
(2) What is the rationale for this deal?
(3) What are the post-Takeover impacts?
(4) Do you endorse this pattern of growth? It there a better
alternative?
(5)
14
OR
Q.5
Case Study:
Calculation of EVA:
Following is the condensed income statement of a firm for the current
year:
Particular Rs in lacs
(i) Sales Revenue 1000.00
Less: Operating costs 600.00
Less: Interest cost 24.00
(ii) Earnings after taxes 376.00
Less: Taxes (0.4) 150.40
(iii) Earnings after taxes 225.60
The firm?s existing capital consists of Rs.300 lac equity funds, having 15
percent cost and of Rs.200 lac 12 percent debt.
Determine the economic value- added during the year.
14
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This post was last modified on 19 February 2020