All the questions are compulsory.

Time: 2 hours

Q1) Differentiate Merger from Acquisition. Marks: 4

Q2) What is the synergy of the merger. Marks: 4

Q3) What are different types of a merger, explain. Marks: 4

Q4) What is the difference between Capital market and Money market. Marks: 4

Q5) The following is available for bond: Marks: 8

a) What is the duration of a bond

b) Calculate YTM.

FV 1000
Coupon rate 12%
Maturity 6 YR
Current price 110

Q6) Find value of bond: Marks: 8

FV 1000
Maturity 10 yr
Yield 10%
Redumption @ 8% premium

Find the cash flow

YR CR
1-3 8%
4–6 10%
7 – 10 12%

Q7) Find the post-merger EPS, Post-merger market price, Swap ratio and no of extra share issued by the
acquirer in the below mention merger case. Marks: 8

  A ltd   B ltd
No of Equity share 150000   150000
Market price per
share 300   60
EPS 30   15
Ke (%) 10%   20%
Price earnings ratio 10 times   4 times