SKPs Dnyansagar Institute of Management (MBA)

Semester IV, Assignments for Finance Specialisation

(403) International Finance

Assignment Submission: 5th Nov 2016

Q1. Explain the origin, objectives and operations of IMF.

Q2. Discuss the nature and scope of International Financing Decision.

Q3. Explain hedging techniques of Foreigh Exchange Risk Management.

Q4. Explain the following terms-

a. Exchange risk
b. Types of Exchange rate regims

Q5. Describe the following-

1. Deregulation
2. Globalization

Q6. Who are the diffrent participants in global capital market. Write in detail the role of each
participant in global capital market.

Q7. Describe Floating-rate Notes & Equity related bonds in detail.

Q8. Define the term syndicated loans. Discuss in detail the method and implications of
syndication of lending.

Q9. What are the strategies used for International receivables management.

Q10. Diffrentiate between (I.F.R.S) and Indian Accounting Standards for foreign
transactions.
 SKPs Dnyansagar Institute of Management (MBA)

Semester IV, (404) Corporate Finance

Q1. Describe the nature and significance of investment decision of a firm.

Q2.Investment and Financing decisions are important aspects of corporate finance, comment.

Q3. Following is the consolidated income statement of a firm for the current year.

Perticulars Rs. In Lakhs

Sales revenue 500

Less: Operating cost 300

Less: Interest cost 12

Earning before taxes 188

Less taxes (0.40) 75.2

Earning after tax 112.8

The firms existing capital consist Rs. 150 Lakh equity fund, having 15 percent cost of Rs 100
Lakhs. 12% debt. Determine the economic value added during the year.

Q4. In a current year the firm has reported a profit of 65 laks afetr paying taxes @ 35%. On
close examination the analyst ascertains that the current years income includes (i) extra
ordiary income of Rs 10 lakhs and (ii) extra ordinary loss of 3 lakhs. Apart from the existing
operations which are normal in nature and are likely to continue in future, the company
expects to launch a new product in the coming year. Revenue and cost estimates in respect of
the new product are as follows-

In Rs. Lakhs
Particulars Amount

Sales 60

Materials 15

Labour cost (additional) 10

Allocated fixed cost 05

Additional fixed cost 08

From the given information compute:

1) Value of the business, given that capitalization rate applied to such business in the
market is 15%.
2) Market price per share (based on future earnings) assuming_
a) The company has 1,00,000, 11% preferance shares of Rs 100 each, fully paid up.
b) The company has 4,00,000, equity shares of Rs. 100 each, fully paid up.
c) P/E ratio is 8 times.

Q5. Explain the models of corporate Governance.

Q6.Define VBM. What are benefits and limitations of VBM?

Q7. ABC Ltd was started a year back with a paid up equity capital of 40,00,000. The other
details are as under:

Earnings of the company Rs. 4,00,000

Price to Earning ratio 12.5

Dividend paid Rs. 3,20,000

No of shares 40,000

Find out, using Walters formula, whether or not companis dividend payout ratio is optimal.

Q8. XYZ is an established company having its share quoted in a major stock exchange. Its
share current market price after dividend distributed @ 20% p.a. havinga paid up share
capital of Rs. 40 Lakhs is Rs. 10/- each. Annual growth rate in dividend is expected to be 4%.
The expected rate of return on its equity capital is 15%. Compute value of XYZs share on
dividend growth model.

Q9. Write short notes on-

a. Reasons for corporate restructuring

b. Disinvestment techniques of restructuring

Q10. What are the constraints of Corporate Restructuring?

 Dnyansagar Institute of Management & Research

MBA-II Sem.-IV (409) Indirect Taxation

Q1. What are Inditect taxes? What are diffrent type of indirect taxes? List diffrent merits and
demerits of indirect taxes?

Q2. Singla Enterprises produces 10 Kgs of wafers per day by using inputs of Rs. 150. The
company added a value of Rs 10 per Kg. The excise duty is 16%. Calculate the total excise
duty paid after a month through:
1. with Cenvat
2. without Cenvat.

Q3. Write short notes on

1. Anit-dumping duty
2. Safeguard duty

Q4. Mr. Gupta imports 20 Quintals of packed food@ Rs 20per kg. Customs duty imposed on
it is 25% and 16% of additional duty. Calculate the total amount Mr. Gupta has to pay to the
Government, if 10% of the goods are pilfered. Assuming that 2% education cess is charged
on customs duty.

Q5. Suppose a computer dealer sells computer @ Rs. 12,240 and he purchases the same
computer @ Rs. 8,000. Vat levied on computers is @ 8% but he gets a rebate @ 2%.
Calculate how much VAT he has to pay and how much is the total collection of VAT by the
Government.

Q6. If A purchases goods worth Rs. 20,000 from the manufacturer and adds value worth Rs.
5,000, calculate total sale price of the product, if VAT levied is @ 12.5%.

Q7. State diffrent characteristics of VAT, its advantages and disadvantages.

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 Dnyansagar Institute of Management & Research

MBA-I Sem-IV (410) Financial Risk Management

Q1. Define risk. What are diffrent forms of risk?

Q2. What are diffrent risk & forcasting issues in exchange rates & interest rates?

Q3. What is the curency risk associated with global investing? How do you hedge your
investment against currency risk?

Q4. Write short note on:

1. Interest rate parity

2. Cross-currency risk

Q5. Write short note on:

1. KMV model
2. Credit risk management

Q6. What are the guideines of RBI as regards credit & market risk management?

Q7. Discuss the role of risk management offices (such as front, middle and back offices) in
risk management.
 Dnyansagar Institute of Management & Research

MBA-II Sem-IV, (413) Wealth & Portfolio Management

Q1. What are the diffrent investment products and services available in the market? Explain
each in detail.

Q2. Explain VAR in detail.

Q3. Explain in detail diffrent approaches to building portfolios.

Q4. Discuss in detail Diversification as a tool for reducing risk.

Q5. What do you mean by portfolio revision? What are diffrent strategies for portfolio
revision.?

Q6. Write short note on

1. Capital Asset Pricing Model (CAPM)

2. Arbitrage Pricing theory

Q7.Explain Sharpes single index portfolio selection method.

 SKPs Dnyansagar Institute of Management (MBA)

Semester IV, (416) Commodities Markets & Derivatives

Q1. Describe at length Commodities based ETFS.

Q2. Explain Commodity futures and its mechanism.

Q3. Describe the role of intermediaries in commodities market.

Q4.Explain the operations performed by clearing houses and their risk management
procedures.

Q5. Explain Agricultural commodity futures tradin pattern with the help of a case study.

Q6. Explain in detail clearing, settlement and risk management in commodity exchanges.

Q7. Discuss in detail the salient features of Warehousing Act bill.