Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 4th Semester (Fourth Semester) R15 2019 Dec 724AF Strategic Investment And Financing Decisions Previous Question Paper
Code No: 724AF
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, December - 2019
STRATEGIC INVESTMENT AND FINANCING DECISIONS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
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
1.a) What is Risk adjusted rate of return? [5]
b) Write short note on Lorie Savage Paradox. [5]
c) What is Hertz Simulation? [5]
d) What is direct Leasing? [5]
e) What are the Problems of Mergers? [5]
PART - B 5 ? 10 Marks = 50
2. Discuss the relationship between dividend policy and the value of the firm. [10]
OR
3. Explain the importance of project investment decision. [10]
4. A company is considering two mutually exclusive projects. Both require an initial
investment of
Rs. 55,000 each and have a life of 5 years. The cost of capital of the company is 11%
and tax is rate is 45%. The depreciation is charged on Straight line method. The
estimated net cash inflows (before depreciation and tax) of the two projects are as
follows:
Year Project A (Rs.) Project B (Rs.)
1 21,000 30,000
2 23,000 27,000
3 28,000 23,000
4 26,000 26,000
5 30,000 21,000
Which project should be accepted as per NPV and IRR method? [10]
OR
5. Write a note on the following:
a) Evidence of IRR b) Modified IRR [5+5]
6. Differentiate between discounted pay back and post pay back. [10]
OR
7. Describe the significance of Information and data bank in project selections. [10]
R15
S
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Code No: 724AF
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA IV Semester Examinations, December - 2019
STRATEGIC INVESTMENT AND FINANCING DECISIONS
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
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
1.a) What is Risk adjusted rate of return? [5]
b) Write short note on Lorie Savage Paradox. [5]
c) What is Hertz Simulation? [5]
d) What is direct Leasing? [5]
e) What are the Problems of Mergers? [5]
PART - B 5 ? 10 Marks = 50
2. Discuss the relationship between dividend policy and the value of the firm. [10]
OR
3. Explain the importance of project investment decision. [10]
4. A company is considering two mutually exclusive projects. Both require an initial
investment of
Rs. 55,000 each and have a life of 5 years. The cost of capital of the company is 11%
and tax is rate is 45%. The depreciation is charged on Straight line method. The
estimated net cash inflows (before depreciation and tax) of the two projects are as
follows:
Year Project A (Rs.) Project B (Rs.)
1 21,000 30,000
2 23,000 27,000
3 28,000 23,000
4 26,000 26,000
5 30,000 21,000
Which project should be accepted as per NPV and IRR method? [10]
OR
5. Write a note on the following:
a) Evidence of IRR b) Modified IRR [5+5]
6. Differentiate between discounted pay back and post pay back. [10]
OR
7. Describe the significance of Information and data bank in project selections. [10]
R15
S
8. Explain the advantages of Leasing, and Leasing Decision in practice. [10]
OR
9. Write a note on the following:
a) Lease Risk b) Operating Risk [5+5]
10. Discuss in brief the various types and reasons of mergers. [10]
OR
11. The following data relates to two companies A and B.
Company M is considering the purchase of company N in exchange of 1 share in M
for every 2 shares held in N. You are required to illustrate the impact of merger on
earnings per share assuming that there would be synergy benefits equal to 25 percent
increase in the present earnings after tax due to merger. [10]
--ooOoo--
Company A Company B
Number of Equity shares 20000 10000
Profit After Tax 70000 30000
Price Earnings Ratio [P/E] 25 13
EPS Rs. 4 Rs. 3
S
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This post was last modified on 23 October 2020