Save trees use e-Question Paper Go green DOWNLOAD THIS FREE AT www.viuresource.com acs Sonia eo (TTL TIT vamars Fourth Semester MBA Degree Examination, Aug/Sept2020 Mergers, Acquisitions and Corporate Restructs @ ‘Times’ hes. M fe Note: Answer any FIVE ful questions. 1a. Distinguish berween horizontal and verical merges cassia) 1b. Explain the diferent types of synergies resulting fom Mer 7 Mats) Examine the various efficiency theories of mergers. aos) 2a. Listthe methods of calculations of purchase consi casntans b. Explain Five Stage Model of merger process. 8) Discus the reasons for fallre of M and A costans) 3. a Explain spin of (smn) 1 Finn A sequives fim B by exchangigipo 5 for each share of Fim B. Input available is given a fellows: : Tm | Tim) Profrater ux (Rs | .00.000, Number of equity fares 00,000 | 2.0.000 EPS (Rs) + | 2s PIE Ratio 0 ® Market prog er shar 4o_| 20 os tobe issue by fie A fr acquisition of fr B. quisition fim A doss not change by acquisition. detemine the valve of the (7 Marks) e erent types of due diligence performed in M and A. Mas) ‘4 faster Limited Partnership. (smtans) 6. saliat features ofthe Competition Act 2002. (Mans) Explain Manca estmeturing. Deseribe the reasons for financial restructuring. (18 Mars} Winnie ity toner, ore ae Earn tl oot dense eet erate) Discuss the diferent takeover defenses available to target fens. oNers) tof BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Vturesource Go Green initiativeSave trees use e-Question Paper DOWNLOAD THIS FREE AT www.viuresource.com Go green 1SMBAFM40} 6 a. Explain pooling of interests metho of accountng for amalgamation, os b. On 31* March 2020, Thin Ltd was absorbed by Thick Lt. the later taking overall assets and lailties of the former at book: values. The consideration for te business was Sedat Rs 400.000 to be discharged by the ransferee company inthe fom ofits fll paid ‘equity shares of Rs.10 each to be distributed among the sharcholders of company, each shareholder getting to shares for every share held in ‘company The balance sheet ofthe two companies as at 31* March 2020 sto Tinks | THREE | Tha | Hels is) | as Shire ‘Goodwil Autorized 1s0q000 | 00.000 Issued. Subsrbed gly sare RerDesch fly pat | saqan0 | 200.000 General Reserve 10.000 | “s0.000 Stal prov ide fae a200] 4000 Pala aosia| 12900 Werkmen compensation fond 12000] 9000 Crediacs S567) 3085 Proviso fertmation | 1230/53 Tisise[Sa TESS. Amalgamation expenses amounting to Re. (i) Prepare realization account and (Gi) Pass joumal entries in he book 6 Assume that the amalgamation is ©The managemeat of firm A sin ‘A and B are given below: 27 Thick Lid. You ae required to th books of This Lid unt in cworMans, of frm B. Financial details of two fms lA RS aki) | Ft A RS aR) Equity share ares 7 100 2s Proference shag a = ‘Shar prem A 2 Prot and Toss 40 5 10% debeggres 20 6 Toul Tes 38 25 | 140 B tL 45 Total t Tes 3a ec tax and preference dividend 25 10 exchange ratio and member shares of im A tobe issued based on: Netassetvahie AB eps. {i Maret price hich is beter from the point of view of Fim A? 2ofs costars) BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Vturesource Go Green initiativeSave trees use e-Question Paper Go green DOWNLOAD THIS FREE AT www.viuresource.com 18MBAFM40L 1 a. Explain Management Buy Out (MBO) come 1. Discs the reasons fo ivesties. orm The summarized balance sheets ass 31-3-2020 of Bharath Li and Aun Li area unde Bias Le] Agen Cw] Barth id] Aj ey | sy | sy) | Taek aabaet apa T1000 | 5.000 | Goa : ‘shares of Rs.100 each) | Buildings Capa Reserve =| saga | Pa Machin Genel Reserve 2.90000 | 0,90 | Fete Protea Los a Tanimo | "| Sock Cure bits 240,00 | 3.95.00 | Debtors Cash and Bane armor Tan ‘Aj Ui was absorbed by Bharath Liason 1” pil 2920 (0) Fixed assets other than goodwill be valued ats ‘fumitre. (i) Stock w be reduced by Rs 20.000 and debt j) Bharath Li to assume liabilities of Aun Lil (©) The shareholders of Arjun Lid 1 re yen of R830 per share pls four uity shares in Bharath Li for (i) Bharath Lid to pay the liquidation Prepare joural enti and show the, {Lid amounting to .6.000 arth Cl afer amalgamation i the ature of purchase. (aoNas) 8 Hypotheical Limited want oso gieet UB. The balance shoot of Target Lil. as at 31° ‘Mah 2020 has the follow a Liabilities Ae Equity shat capital Fixed asels (60000 share of Curent assets Retained caring 12% debent Croitors and of ”" Target Li, will get one share in Hyposhetcal Lid for every 10 ‘of Hypothotical Lid would be issued at its curent market price oF ‘tne debentre holders wil get 13% converble debentures inthe fm ofthe same amount, The extemal ibltes are expected to be seted Rs, Further, cutrent assets expected to realize Rs. 1.00.00, {s expected that the eas flows afer taxes (CEAT) will be Rs.1.S0.000 per year for ext 6 years, Kis expected thal the Fixed asets ofthe Target Lid fetch RS 50,000 at ofthe 6 yee (iy Given the sk complexion of Target Lid cost of capital relevant for Target Lid is 1386, the company regentng the financial easily ofthe acquisition, (Present salve of ea flows for Rel @ 12% Year: 0.893 Year? | 0797 Year}: 0.712 Yeard : 0636 Years : 0567 Yearé : 0507 ) oman, 3083 BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Vturesource Go Green initiative