Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 4th Sem 2840601 Investment Banking Ib Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (04) ? ? EXAMINATION ? SUMMER 2016
Subject Code: 2840601 Date: 10/05/2016
Subject Name: Investment Banking (IB)
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.
No. 1
(a)
Select the correct answer for the given MCQ 6
1.
Core Investment Banking in Indian context is predominantly non fund based
activity while in the US and other developed markets, it is predominantly fund
based
A. True B. False
2.
The full form of ARC is
A. Asset
Reconstruction
company
B. Asset Reconciliation company
C. Asset Renewable
Company
D Asset Renowned Company
3.
An Investment bank holding expertise in a specific sector or a service is called
as a
A. Buldge bracket
Investment Banks
B. Boutique Investment Banks
C. Merchant Banks D. Investment Banks
4.
NAV of the company is
A. Revaluation of
assets
B. Book value of Assets
C. Total assets
reduced by
liabilities
D. None of them
5.
Green Shoe option is to provide more number of shares to the investors than
originally planned in:
A. FPO B. Private Placement
C. Rights Issues D. IPO
6.
A restructuring option available to the company to increase its EPS and reduce
the number of shares in the markets
A. Takeover B. Buyback
C. Merger D. Split off
Q.1 (b) Define the following terms:
1. Underwriting Devolvement
2. Due Diligence
3. BIFR
4. Takeover
04
Q.1 (c) Differentiate briefly Investment banking and Merchant Banking 04
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (04) ? ? EXAMINATION ? SUMMER 2016
Subject Code: 2840601 Date: 10/05/2016
Subject Name: Investment Banking (IB)
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.
No. 1
(a)
Select the correct answer for the given MCQ 6
1.
Core Investment Banking in Indian context is predominantly non fund based
activity while in the US and other developed markets, it is predominantly fund
based
A. True B. False
2.
The full form of ARC is
A. Asset
Reconstruction
company
B. Asset Reconciliation company
C. Asset Renewable
Company
D Asset Renowned Company
3.
An Investment bank holding expertise in a specific sector or a service is called
as a
A. Buldge bracket
Investment Banks
B. Boutique Investment Banks
C. Merchant Banks D. Investment Banks
4.
NAV of the company is
A. Revaluation of
assets
B. Book value of Assets
C. Total assets
reduced by
liabilities
D. None of them
5.
Green Shoe option is to provide more number of shares to the investors than
originally planned in:
A. FPO B. Private Placement
C. Rights Issues D. IPO
6.
A restructuring option available to the company to increase its EPS and reduce
the number of shares in the markets
A. Takeover B. Buyback
C. Merger D. Split off
Q.1 (b) Define the following terms:
1. Underwriting Devolvement
2. Due Diligence
3. BIFR
4. Takeover
04
Q.1 (c) Differentiate briefly Investment banking and Merchant Banking 04
2
Q.2 (a) Explain in detail, the business portfolio of Investment Banks and services
rendered by them.
07
(b) Discuss the emergence of Investment Banks in the US and India. 07
OR
(b) You are a manager of an Investment Bank facing dilemma to suggest your
Investors and the corporate clients at the same time. Discuss this statement
in lieu of ?Conflict of Interest? in detail and suggest the probable solutions
to it.
07
Q.3 (a) Write in detail the different equity, hybrid and debt instrument available for
funding in the domestic market
07
(b) Your company is a listed company in India and wants to get listed in the
USA. What options does your company hold to get its shares listed on
American Stock exchange? Discuss it in detail with the compliance
requirement.
07
OR
Q.3 (a) State the difference between private equity and venture capital. Discuss the
investment banking perspective in Private equity
07
(b) Who is QIB? Discuss the different type of QIBs and also elaborate on the
guidelines governing the investment decisions of QIBs.
07
Q.4 (a) Write in detail the genesis of CDR in detail. Discuss the three tier structure
of CDR of India.
07
(b) A company in a high growth stage has a free cash flow to firm of Rs 196
lakh in the first year which is expected to grow at the rate of 9% every year
for five year. The cost of equity is 14.65% and cost of debt is 7%. The debt
ratio is 50%. Find out the Present value of FCFF at the end of five years.
Also find the value of firm at the end of stable growth rate period if the
growth rate is 5%, Cost of equity 13.27% and cost of debt 6.65% where
debt ratio is 30%
07
OR
Q.4 (a) State the importance of Underwriting in any public issue. Also elaborate its
different types in detail
07
(b) Write in detail the strategies of Corporate split up by transfer of equity and
transfer of assets. Discuss the same with some relevant examples.
07
Q.5 Your Financial Institution is expanding its business operations in the field
of Investment Banking divisions in India. All the necessary approvals are
to be taken from the government. The Investment Banking divisions of
yours have an option to provide services to certain specific group of
companies (sector) or the whole market. Discuss (1) The Regulatory aspects
of Investment Banking in India.
(2) Select the type of Bank you belong to and justify your answer.
14
OR
Q.5 Your Investment Banking Division has got an option to help a company
called ?Apex Ltd? to raise an IPO of 15, 00,000 numbers of shares having
a face value of INR 10 each. Price band is from 110 to 115 and bids can be
made in multiple of 20 equity shares and thereafter.
Make all the necessary required assumptions and elaborate on the pre and
post IPO process of Apex Ltd in detail.
14
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This post was last modified on 19 February 2020