Saturday 13 January 2018

FIN302-Mergers & Acquisitions

FALL-2017
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Master of Business Administration - MBA Semester 3
FIN302-Mergers & Acquisitions
Note: Answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain the basis for arriving at Fair Price. 
• Explanation for the basis for arriving at Fair Price.
Answer.  Basis for arriving at fair price
All-India level financial institutions and banks follow the following criteria for calculating the fair
Q2. Explain the concept of Synergy and the prerequisites for its creation.  
a) Explanation of the concept of Synergy
 b) Explanation of the prerequisites for its creation
Answer.
a) Explanation of the concept of Synergy 
Synergy refers to a situation where the combined value of a merger is more than the sum of the values of merging firms. It is the phenomenon where 2 + 2 = 5. If the value of firm A is VA value of firm
Q3. Explain Demerger and its tax implication. 
a) Explanation of Demerger
 b) Explanation of the Tax Implication of Demerger 
 Answer. a) Explanation of Demerger 
 Demerger is often used to divide or separate some undertakings of a business, functioning till then under a common umbrella. It is a way to get rid of underperforming or non-core business divisions that can

FALL-2017
Get solved assignments at nominal price of Rs.125 each.
Visit www.instamojo.com/subjects4u  search and pay according to your requirements.
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08894344452, 8219081362

SET-II
Q1. A strategic alliance is when two or more businesses joins for a set period. Explain its advantages. Explain the tax aspect of Joint Venture.   
1) Advantages of Strategic Alliance  
2) Tax aspect of Joint Venture.
Answer. 1) Advantages of Strategic Alliance  
1. Gain
Q2. Explain the types of takeovers. Explain defenses against takeover bids.
a) Types of takeovers.
b) Defenses against takeover bids.
Answer. a) Types of takeovers:
Takeovers are of different types.
Bailout takeovers Bailout takeover refers to a substantial acquisition of shares in a financially weak
Q3. Explain the factors in Post-merger integration and five rules of Integration Process.
a) Explanation of factors in Post-merger integration.
b) Explanation of Five rules of Integration Process.
Answer. a) Explanation of factors in Post-merger integration:
Some important factors that can decide the success or failure of a merger or acquisition are: Due diligence: Thorough due diligence involves comprehensive analysis of the financial position, management capabilities, physical assets and intangible assets of the target company. However, it can result in failure


FALL-2017
Get solved assignments at nominal price of Rs.125 each.
Visit www.instamojo.com/subjects4u  search and pay according to your requirements.
Any issues mail us at: subjects4u@gmail.com or contact at
08894344452, 8219081362


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