This download link is referred from the post: JNTUH MBA 4th Semester Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)
R15
Code No: 724AF
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
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MBA IV Semester Examinations, April/May-2019
STRATEGIC INVESTMENT AND FINANCING DECISIONS
Time: 3hours
Max.Marks:75
Note: This question paper contains two parts A and B.
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Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B consists of 5 Units. Answer any one full question from each unit. Each question carries 10 marks and may have a, b, c as sub questions.
PART - A 5 × 5 marks = 25
- a) What do you understand by ‘risk analysis’? Explain types of risks. [5]
- b) Differentiate the investment from Disinvestment. [5]
- c) What is Hertz simulation? Explain its importance. [5]
- d) Define 'lease'. How does it differ from a hire purchase? [5]
- e) Discuss the possible reasons for mergers. [5]
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PART - B 5 × 10 marks = 50
- Explain the concept of risk and uncertainty and what are the types of investment decisions that can be adopted under uncertainty? [10]
OR
- Suppose a firm has an investment proposal, requiring an outlay of Rs 2,00,000 at percent (t=0). The investment proposal is expected to have 2 years economic life with no salvage value. In year 1, there is a 0.3 probability (30 percent chance) that CFAT will be Rs 80,000; a 0.4 probability(40 percent chance) that CFAT will be Rs 1,10,000 and 0.3 probability (30 percent chance) that CFAT will be Rs 1,50,000. In year 2, the CFAT possibilities depend on the CFAT that occurs in year 1. That is, the CFAT for the year 2 are conditional on CFAT for the year1. Accordingly, the probabilities assigned with the CFAT of the year 2 are conditional probabilities. The estimated conditional CFAT and their associated conditional probabilities are as follows.
If CFAT = Rs 80,000
If CFAT = Rs 1,10,000
If CFAT = Rs 1,50,000
CFAT 2 Probability CFAT 2 Probability CFAT 2 Probability Rs40,000 0.2 Rs 1,30,000 0.3 Rs 1,60,000 0.1 1,00,000 0.6 1,50,000 0.4 2,00,000 0.8 1,50,000 0.2 1,60,000 0.3 2,40,000 0.1 - What is the impact of inflation on capital budgeting decisions? Elaborate. [10]
OR
- A firm whose cost of capital is 10% is considering two mutually exclusive projects X and Y, the details of which are:
Year Project X Project Y Cost 0 Rs.70,000 Rs.70,000 Cash inflows 1 10,000 50,000 2 20,000 40,000 3 30,000 20,000 4 45,000 10,000 5 60,000 10,000 - Explain scope and importance of information and data bank in project selections. [10]
OR
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- Write a short note on:
- Discount payback
- Post payback
- Surplus payback
- Bail-out pay back
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- How do you evaluate the lease from the point of view? [10]
OR
- A company is considering the lease of an equipment which has a purchase price of Rs.3,50,000. The equipment has an estimated economic life of 5 years. As per the income tax rule a written down depreciation at 25 percent is allowed. The lease rentals per year are Rs. 1,20,000. Assume that the company's marginal corporate tax rate is 50 percent. If the before-tax borrowing rate for the company is 16 percent, should the company lease the equipment? Ignore tax shield on depreciation after 5 years. [10]
- Explain different types of mergers. Compare and contrast between mergers and acquisition. [10]
OR
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- Videsh Limited is keen on reporting earnings per share of Rs. 6.00 after acquiring Swadesh Limited. The following financial data are given.
Videsh Limited Swadesh Limited Earnings per share Rs. 5.00 Rs. 5.00 Market price per share Rs. 60.000 Rs. 50.00 Number of shares 1,000,000 800,000
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This download link is referred from the post: JNTUH MBA 4th Semester Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)