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    Corporate Valuation & Mergers & Acquisitions Feb.23

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    pratik9365
    This document outlines the structure and questions for a Corporate Valuation & Mergers & Acquisitions exam. It will be 3 hours long and contain 7 questions. Question 1 is compulsory and worth 20 marks. Students must attempt 4 of the remaining 6 questions worth 10 marks each. Each question contains 2 sub-questions from which students can choose 1. So in total students must answer 5 questions. Question 1 provides a valuation case study using the DCF method. The other questions cover topics like share exchange ratios, DCF relevance, copyright valuation, relative valuation, balance sheet valuation, mergers types, and short notes on merger types, intrinsic value and present value factors.

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    Corporate Valuation & Mergers & Acquisitions Feb.23

    Uploaded by

    pratik9365
    13 views2 pages
    This document outlines the structure and questions for a Corporate Valuation & Mergers & Acquisitions exam. It will be 3 hours long and contain 7 questions. Question 1 is compulsory and worth 20 marks. Students must attempt 4 of the remaining 6 questions worth 10 marks each. Each question contains 2 sub-questions from which students can choose 1. So in total students must answer 5 questions. Question 1 provides a valuation case study using the DCF method. The other questions cover topics like share exchange ratios, DCF relevance, copyright valuation, relative valuation, balance sheet valuation, mergers types, and short notes on merger types, intrinsic value and present value factors.

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    Financial Modelling

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    This document outlines the structure and questions for a Corporate Valuation & Mergers & Acquisitions exam. It will be 3 hours long and contain 7 questions. Question 1 is compulsory and worth 20 marks. Students must attempt 4 of the remaining 6 questions worth 10 marks each. Each question contains 2 sub-questions from which students can choose 1. So in total students must answer 5 questions. Question 1 provides a valuation case study using the DCF method. The other questions cover topics like share exchange ratios, DCF relevance, copyright valuation, relative valuation, balance sheet valuation, mergers types, and short notes on merger types, intrinsic value and present value factors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views2 pages

    Corporate Valuation & Mergers & Acquisitions Feb.23

    Uploaded by

    pratik9365
    This document outlines the structure and questions for a Corporate Valuation & Mergers & Acquisitions exam. It will be 3 hours long and contain 7 questions. Question 1 is compulsory and worth 20 marks. Students must attempt 4 of the remaining 6 questions worth 10 marks each. Each question contains 2 sub-questions from which students can choose 1. So in total students must answer 5 questions. Question 1 provides a valuation case study using the DCF method. The other questions cover topics like share exchange ratios, DCF relevance, copyright valuation, relative valuation, balance sheet valuation, mergers types, and short notes on merger types, intrinsic value and present value factors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    MMS - Semester III End Term Examination, February 2023

    Subject: Corporate Valuation & Mergers & Acquisitions Maximum Marks: 60


    Duration: 3-hours Date: 1 3th F ebruary, 2023

    There will be Seven Questions in all.

    Ql would be compulsory and would carry 20 Marks.

    In addition to Ql, there would be six questions. Each question would carry 10 Marks.
    Students have to attempt any four out of the remaining six Questions and within each
    question;

    students have to attempt any one out of two sub - questions.

    In all, students have to attempt five questions i.e. (Ql + Any Four of the remaining)

    Ql Nobody Limited is expecting its first year Sales and EBT to be Rs 200 Cr and Rs 30 Cr
    respectively. The top line is expected to grow @ 20% year on year with four year as single
    growth life cycle and business will continue then after for perpetuality. Income Tax Rate is
    30% with perpetual business growth rate @ 2 Yo. The expected Cost of Debt is 1 1% and Cost
    of Equity is 28Yo and Debt-Equity Ratio is 3:1. Determine the valuation of Nobody Limited
    by using the DCF Method. State working of Terminal Value, assumption and limitations as
    well. (20 Marks)

    Q2Xa) Amrut Limited will be taking over Death Limited on 3l't March 2022. Following are
    the Balance Sheet details as on 31't March 2022 :

    Particulars Amrut Ltd ( In Rs) Death Ltd ( In Rs)


    Equity Share Capital 1,00,000 50,000
    ( Face Value of Rs 10/- each)
    Reserves & Surplus 7,00,000 2,00,000
    Bank Loan @8% 1,00,000 50,000
    TOTAL 9.00.000 3.00.000
    Fixed Assets 7,25,000 0
    Workine Capital 1.75.000 3,00,000
    TOTAL 9.00.000 3,00,000

    Determine Share Exchange Ratio to be offered to Shareholders of Death Ltd if the SER is
    based on i) Net Assets Value. (10 Marks)

    OR

    Q2)(b)What is DCF and its relevance in Futuristic Valuation? (10 marks)

    Q3Xa) Known Self Ltd ( The Company) has copyright of a spiritual book named "
    SATTVA". Determine the copyright value if expected revenue for next 6 years are Rs. 2.5Cr,
    Rs. 3cr, Rs. 6cr, Rs 9cr, Rs 9cr and Rs. 10cr respectively. Other fixed cost per year is Rs. lcr
    and Income Tax is 25% on the profits. Further the revenue segme_nting is : i) 35% from
    BOOK SALE with cost of capital @8% and ii) 65%o from ONLINE SALE with cost of
    capital @12%.
    consider cost of capital for discounting purpose? (10 marks)
    OR

    Q3)(b)Explain valuation of Goodwill? (10 marks)

    Q4Xa) By using the technique of Relative Valuation determine the expected market value of
    Novice Ltd.

    Novice Ltd A Ltd (PEER


    in same Industry)
    Earning Per Share Rs 50 Rs 60
    Book Value Per Share Rs 75 per share Rs 65 per share
    Sales Rs 900 Cr Rs 750 Cr
    Market Value ??????????? Rs 1250 per Share
    ( 10 Marks)
    OR

    Q4xb)what is discounting factor and its relevance in valuation? (10 marks)

    Q5Xa) what is Balance Sheet Method for valuation, with Example.? (10 marks)

    OR

    Q5)(b)Explain Hostile Take Over? (10 marks)

    Q6Xa) Distinguish between Horizontal Merger and vertical Merger (10 marks)

    OR

    Q6Xb) Distinguish between Historic Approach and Futuristic Approach (10 marks)

    Q7) Short Notes (Any Two)


    i) Type of Mergers (05 Marks)
    ii) Intrinsic Value (05 Marks)
    iii) Present Value Factor (05 Marks)
    iv) How are Brands Valued? (05 Marks)

    ,F ** rQl. rl. rk

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