3

7
7
A9
E7

F7

D2
29
Paper / Subject Code: 45207 / Financial Analysis and Business Valuation

AB

31

89

7B
9D
E7

F7

D2
29
94

9A
AB

31

7B
9D
78

78
7
B7

9
94

9A
E

1F

D2
B
8
E4

73
(2½ Hours) [Total Marks : 75

78
A
77

A9
94
BB

F
B

AB

9
8
4

78
95

7
E
Q.1.A) State whether the following are true or False (any eight) (8)

9
7
B7

94
B

9A
E

1F
27
1. Dividend is paid out of Reserve

AB
78
E4

73
BD

78
95
2. In EPS, , S & refers share

94
B

F
7

B
97

31
2
3. In EVA, V refers to variation

8
4
D

95

4A
7
D2

E7
B

7
4. Relative valuation means valuation using multiples

B
7

89
7
A9

AB
2
9

E4
5. Price sale ratio refers relation between sale & stock price.

77
D2

E7
89

9
B

94
B
7
6. Valuation are subjective calculations

B
7
9

5B
F7

AB
D2

78
9

E4
A
7. Brand valuation has credibility.

D2
31

89

79
7B

B7

4
BB

89
8. Goodwill is a tangible asset.

9
7

D2
29

E4
9A
BE

95

77
1
9. Copyrights, patents are intellectual properties.

7B
D

BB
3

78

27
4A

4B
9
E7
10. Shareholders do not provide capital to business.

9
9A
F

95
2
89

BE
B

31

B7
D
B) Match the column (any seven) (7)

78

27
A
77

97
A9
E7

5B
4

E4
A B

1F

D
4B

D2
89

AB

79
7B

BB
3

8
1) Price
77
BE

A9
7

D2
9
4

1F

95
4B

2) Asset Based Approach a) DCF

2
9
5B

AB

7B
9D
8

78

27
77
BE

3) Income Based approach b) Intrinsic Method

7
79

29
4

A
E

1F

BD
4B

89
5B

4) Net Asset Method c) Dividend AB

D2

9D
3

8
7
BE

97
E7

F7
79

5) Debentures d) NAV
7B

9A
B

D2
89
5B

AB

31
D2
29

6) Brand e) Exchange value

E4

78
77

A9
E7
79
7B
9D

4
B

7) Patent f) Musical

1F
B

89
B

AB
D2

89
29

E4
9A

73
8) Copyright g) Price earning ratio
5

77

F7
79
7B
9D

94
B

E
78

9) P/E Ratio h) Earning per share

5B

31
2

78
29

E4
9A
1F

BD

4A
10) EPS i) Property right

E7
79

B7
9D

BB
73

78

89
97

j) Lux

AB
D2

4
9A
BE

1F

77
D2

E
9
B

94
BB
73

78

27
4A

4B
7
A9

Q.2.A) Calculate operating leverage, Financial Leverage and combined leverage. 78 (15)
9
BE

1F

95
D2
89

BE
89

B7

Also prepare income statement and find out EPS.

73

27
4A
77

97
A9

5B
F7

E4
BE

D
4B

D2
89

31

89

79
B

BB
4A
77

A Ltd B Ltd
BE

97
A9
E7

F7

D2

95
4B

2
9

Selling price per unit Rs . 60 Rs. 70

5B

31

7B
9D
78

27
4A
E

E7

F7

No of units sold 40,000 30,000

B7

29
BB

9A

BD
9

31

9D
78

Variable cost per unit Rs.25 Rs.20

E4

8
5

4A

97
E7

F7
79

B7
B

9A

10% Debentures Rs. 3,00,000 Rs. 4,00,000

D2
9
5B

31
2

78
E4
BD

78

Tax Rate 40% 40%

4A

A9
E7
9

B7
B

1F
27

9
7

Equity shares 30, 000 40,000

5B

89
78
29

E4

73
BD

4A

Fixed cost Rs. 25,000 Rs.18,000

F7
9

B7
B

BE
27

9
97

5B

31
78
E4
BD

4A
2

E7
9

B7
9D

B
27

89
97

5B

AB
E4
A

Q.2.B) Find out YTM for the following (8)

BD

7
2
89

B7
9D

94
B
27

Bond coupon maturity price

97

5B
F7

78
4
9A

BD

X 10% 8 yrs. Rs. 70

2

BE
9

B7
9D
78

27
97

Y 8% 10 yrs. Rs. 60
5B

E4
9A
1F

BD
2

Face value of Bond is Rs. 100/-

9
9D

BB
73

78

27
97
9A
E

1F

BD

95
2
AB

9D

C) State the advantages of the Merger (7)

73

78

27
97
94

9A
E

1F

BD
2
AB

9D
73

78

97
4

9A
E

1F

2
89

AB

9D
73

78
77

9A
E

1F
4B

89

AB

73

78
77
BE

15139 Page 1 of 3
E

1F
4B

89

AB

73
77
E

4
BB

BE

5BBE4B77894ABE731F789A9D297BD279
4B

89
 3

7
7
A9
E7

F7

D2
29
Paper / Subject Code: 45207 / Financial Analysis and Business Valuation

AB

31

89

7B
9D
E7

F7

D2
29
94

9A
AB

31

7B
9D
78

78
7
B7

9
94

9A
E

1F

D2
B
8
E4

73
Q.3.A) Co. P wants to acquire Q by exchange of 0.5 shares for every share of Q. (15)

78
A
77

A9
94
BB

F
The necessary information given below.

AB

9
8
4

78
95

7
E

9
7
B7

94
B

9A
E

1F
27
P Ltd Q Ltd

AB
78
E4

73
BD

78
95
NPAT Rs. 10,00,000 Rs. 2,00,000

94
B

F
7

B
97

31
2

8
No Equity Shares 4, 00,000 50,000

4
D

95

4A
7
D2

E7
B

7
B
Market price Rs. 40 Rs. 30

89
7
A9

AB
2
9

E4
D

77
D2

E7
89

9
B

94
B
7

B
Calculate:

7
9

5B
F7

AB
D2

78
9

E4
A

D2
1) EPS and P/E of both the firms before acquisition 31

89

79
7B

B7

4
BB

89
9
7

D2
2) The no of equity shares to be issued by P for acquiring Q.

29

E4
9A
BE

95

77
1

7B
3) EPS of P after acquisition

BB
3

78

27
4A

4B
9
E7

9
4) MPS of P after acquisition assuming its P/E multiples remain unchanged.

9A
F

95
2
89

BE
B

31

B7
D
5) Market value of the merged entity.

78

27
A
77

97
A9
E7

5B
4

E4
1F

D
4B

D2
89

AB

79
7B

BB
3

8
77
BE

OR

A9
7

D2
9
4

1F

95
4B

2
9
5B

AB

7B
9D
8

78

27
77
BE

7
79

Q.3.B) Calculate EVA for the following (8)

29
4

A
E

1F

BD
4B

89
5B

AB
D2

9D
3

8
7
BE

97
E7

F7
79
7B

4
Equity share capital Rs. 12,00,000

9A
B

D2
89
5B

AB

31
D2
29

E4

78
12% preference share capital Rs. 6,00,000
77

A9
E7
79
7B
9D

4
B

1F
B

Reserves and Surplus Rs. 8,00,000

89
B

AB
D2

89
29

E4
9A

73
5

77

12% Debentures Rs. 4,00,000

F7
79
7B
9D

94
B

E
78

B
5B

31
2

Profit Before Tax Rs. 8,00,000

78
29

E4
9A
1F

BD

4A

E7
79

B7
9D

Tax Rate 40%

BB
73

78

89
97

AB
D2

4
9A
BE

1F

WACC 14%
5

77
D2

E
9
B

94
BB
73

78

27
4A

4B
7
A9

78
9
BE

1F

95
D2
89

BE

C) Discuss the types of financial Analysis (7)

89

B7
73

27
4A
77

97
A9

5B
F7

E4
BE

D
4B

D2
89

31

89

79

Q.4.A) Calculate free cash flow to firm for the following (8)
B

BB
4A
77
BE

97
A9
E7

F7

D2

95
4B

2
9
5B

31

7B
9D
78

Sales Rs. 5,00,000

8

27
4A
E

E7

F7
B7

29
BB

9A

Cost Rs. 2,00,000

BD
9

31

9D
78
E4

8
5

4A

Depreciation Rs. 20,000

97
E7

F7
79

B7
B

9A

D2

Tax 40%
9
5B

31
2

78
E4
BD

78
4A

Change in net W.C. Rs. 5,000/-

A9
E7
9

B7
B

1F
27

9
7

5B

Change in Capital Rs. 8,000/-

89
78
29

E4

73
BD

4A

F7
9

Spending
B7
B

BE
27

9
97

5B

31
78
E4
BD

4A
2

E7
9

B7
9D

B) Calculate Brand value for the following (7)

27

89
97

5B

AB
E4
A

BD

7
2
89

B7
9D

94
B
27

Branded Revenue Rs. 200.p.u

97

5B
F7

78
4
9A

BD
2

BE

Unbranded Revenue Rs. 100 p.u.

9

B7
9D
78

27
97

5B

Branded Cost Rs. 175 p.u.

E4
9A
1F

BD
2

Unbranded Cost Rs. 50 p.u.

9D

BB
73

78

27
97

Cost of R.D. Rs. 15 p.u.

9A
E

1F

BD

95
2
AB

9D
73

78

27
97
94

9A
E

1F

BD

Number of branded products 25,000 units

2
AB

9D
73

78

Number of Unbranded products 20,000 units

97
4

9A
E

1F

2
89

AB

9D
73

78
77

9A
E

1F
4B

89

AB

73

78
77
BE

15139 Page 2 of 3
E

1F
4B

89

AB

73
77
E

4
BB

BE

5BBE4B77894ABE731F789A9D297BD279
4B

89
 BE 94 F7 29 5B
4B AB 89 7 BD BE
77 E 73 A 9D 2 4B
89 2 79 77
BB
E 4 AB
1F
78 97 5BB 89
4B
77 E 9A BD E 4B
4A
73 9D 27 BE
89
4 1F 2 97 9 5B 77 73
AB 78 B 89 1F
4B E 9A BD E4 4A 78
77 73 9D 27 B7 BE 9A
9

15139
89 1F 2 73 9D

1) EPS
4 5B 78

5) IPRs
78 97 B 9 1F 29
Tax Rate

AB 9A BD 4A 78
E73 9D 27
E4
B7 BE 9A 7B
89
4 1F 2 97 95B 78 73 9D D2
79
AB 78
9A BD B 9 4A 1F
78 29 5B
E E4 B 7B

3) Bonds maturity
73 9D 27 B7 9A BE
9 E7 D2
Capitalisation factor

1F 2 4B

4) Financial leverage
97 5B 78 31 9D 79
78 BD B 9 4A F7 29 5B 77
89
D) Discuss FCFF
BE 9A E4 7B
B 89 BE 4A

2) Purchase consideration
73 9D 27 B7
2 9 E7 A9 D2 4B BE
Q.5.B) Short Notes (any 3)
1F 5B 78 31 79
78 97
BD B 9 4A F7
D2
97 5B 31 77
89 7
9A E4 4
9D 27 B7 B 89 BD A BE F7
9 E7 2 B 89
20%

A9 4B
2
20 %

97 5B 78 31 79 E7 A9
BE 4A 9 F7
D2
9 5 B 8 3 1
77
BD
27 4 B 8 9 7 B B 9 4 F 7
D2
97
B7 E4 AB 89
Q.4. C) Write a note on sales Variance

E7 A9 D2
95 7 31 79 B 7 E7 A BD
BB 89
4A F7
D2
97 5B 7 89 31 9 D2 27
8 B F 95
OR

E4 B D 4 9 7
OR

B7 BE 9A E4 AB 78 B BB
78 73 9D 27
9 B E 9A D 2
E4
94 1F 2 97 5 77
89 7 3 9 D2 7 B7

Page 3 of 3
78 B BB
4 1F 9 95 78
AB
E7 9A D E4 AB 78 7 B B B 94
9D 27 B E 9A D E 4 AB
31
F7 29 95 77
89 7 3 9 D 2 7 B E7
7B BB 1F 95 77 3
89 E 4 7 29 B 8
-------------------------------

A9 D2 4 B7
AB 8 9 7B B E4
94
AB
D2 79 E7 A9 D2
3 7

5BBE4B77894ABE731F789A9D297BD279
97 5B 78 D 2 9 B7
7 E7
BD BE 94 1F
78 9 5 B 8 31
4B AB 9 7B B E
94
A F7
27
95 77 E7 A9 D2 4 B B 8
BB 89 31 D2 79 7 78 E7
4A F7 97 5B 31
E4 B 8 9 B B 94 F7
B7 E A D E4 AB 89
78 73 9D 27 B 7 E A9
94 1F
78 2 9 95
BB 78 73
1F
AB 7B 94
9A D E4 78
Paper / Subject Code: 45207 / Financial Analysis and Business Valuation

E7 AB
31 9D 27 B E 9A
29 95 77 7 3 9D
F7
89 7B BB 89
4A 1 F 29
E4 78 7
(7)
(8)

A9 D2 B E 9A
(15)

D2 79 B7
97 5B 78 73 9D
BD BE 94 1F 29
AB 78 7B
27 4B E7 9 A9 D2
95 77 31 7
BB 89 F
D2
E4 4AB 78 9 7B
B7 E7 9A D2
9