Save trees use e-Question Paper Go green DOWNLOAD THIS FREE AT www.vturesource.com en wo ‘Third Semester MBA Degree Examination, December 2011 Mergers, Acquisitions and Corporate Restructy i Time: 3 bes. Max. Mags: : Note: 1. Answer any FOUR full questions from Q.No.1 7 3 2. Question No. 81s Compulsory. $2 1 a. Whatdoyoumcan by synergy? 2" bL Writeanote on tender offer, hostile takeover and reverse mffger. E26. Explain various takeover defies avalableto arg Gomer) TE ao watismemty ein avout a 1% * bh. Explain managerial challenges in mergers and scquljon (eran) © plain varios toons of mergers. Gomes) Ef 3 & Distinguish mergers from acquisitions, coomants : '._Blucidate post merger integration problemi acquisitions omens) i ©. What ie MUP? Explants pes GoMans) ih 4 &. Whatare cash cows in BCG matrix 7 3 Marts) Explain the compelling reasons sitions. rman) i i €. The following data concems companies: #3 smpany ABC | Company XYZ 1 1,50000 | — €40,000 fag | — 16,000, 3000] a 5 E50 Dhaai eee ge ‘Assume that AWG. co. {o have same earings and PIE ratios after the merger as FS before (no syner ‘tent of gain accruing to the share holders of two companies as. u Ss result of gages. Apion the gain among share holders and comment. ‘do Maris) SS a Wha eration? List it types. (mans) Sy kN Tenefits of merges and acquisitions. Maris) eo Sr ‘cash flow of £19 lakh, and is ected to grow at a rate of 26.5% for the £ £10 years, Retention ratio is $0%, The applicable tax rate is 30%. Smart's cost of a After the period of super normal growth, smart Ltd. is not expected to grow: } any SRE What isthe value of smart Lid? ‘do Maris ‘ comparable company approach o valuation? co mari fy explain SEBI take over code Mari) 10f2 S BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Vturesource Go Green initiativeSave trees use e-Question Paper DOWNLOAD THIS FREE AT www.vturesource.com eee 10MBAFM323 ‘On 31" March 2000 the Balance Sheet of ¥ Ltd. stood as follows = lance Sheet of ¥ Ltd. Liabilities z “Assets z ‘Share capital (€ 10 each) | 6,00,000 | Furnitures ‘60,000 Pr. Creditors 1,30,000 | Stock 415s Debtors 115, Cash out bank 40,000 Profit and loss account | 1,00,000 730,000, 10,000, ‘On this date X led took over the business of ¥ [td for ©5,00,000 pays Torts of its ‘equity shares of € 10 cash at par. Show the necessary ledger account sof ¥ ltd. ‘(10 Marks) ‘What do you mean by LBD" and ‘MBD"? (03 Marks) Write a note on porters five forces model (07 Marks) “The following is balance sheet of “A” Itd as on 31" March 2081 | Liabilities = = Equity share capital 10,60,000 | Good 790,000, General reserve 1,10,000 2,00,000 Work men’s — accident | $0,000 | Plant ry 4,40,000 ‘compensation reserve Profit and loss A/c 70,000 is endprade marks | 30,000 Sundry ereditors 160,009, 2,10,000 3 180,000, + provision for bad | 1,68,000 12000 ‘at bank preliminary | 1,32,000 Preliminary exps. 20,000 13,90,000 ‘The company Ts acquired by X Tidar € 14,0000 Le. © 12,00,000 fully paid €10 shares and balance in cash, There was a) ‘under the workmen's compen ity in respect of a claim for compensation rhe claim was not taken over by X ltd Give the journal entries in td. a0 Mares) ‘Compulsory : ‘Sagar motors, an i ‘manufacturing firm is in a eyclical business. It plans to acquire Agni auto, an ‘growth, the motivg bei ce firm whose business is non ~ eyelical and in high ification of business, The financial details are as follows : Debt finaneing ratio Cost of debt Beta First 3 years 125) 1 © | Aner years iia ‘ill rate (sk free) 796 and the market premium Ts 55%. The tox rate for both 15969, Estimate the value of two firms independently. ‘@oMarks) 20f2 Go green BRANCHES | ALL SEMESTERS | NOTES | QUESTON PAPERS | LAB MANUALS A Vturesource Go Green initiative