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Mergers, Acquisitions & Co. Restructuring

This document contains instructions for an exam on mergers, acquisitions, and corporate restructuring. It lists 8 questions covering topics like the symptoms and purposes of corporate restructuring, types of mergers and takeover defenses, leveraged buyouts, demergers and their tax implications, and human resource valuation. It also provides financial information for two companies, A Ltd and T Ltd, and asks students to calculate the exchange ratio based on EPS and market price, as well as the value of each firm. The exam is worth a total of 60 marks and students must answer any 5 of the 8 questions within the 2 hour time limit.

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Lindsay Summers
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47 views3 pages

Mergers, Acquisitions & Co. Restructuring

This document contains instructions for an exam on mergers, acquisitions, and corporate restructuring. It lists 8 questions covering topics like the symptoms and purposes of corporate restructuring, types of mergers and takeover defenses, leveraged buyouts, demergers and their tax implications, and human resource valuation. It also provides financial information for two companies, A Ltd and T Ltd, and asks students to calculate the exchange ratio based on EPS and market price, as well as the value of each firm. The exam is worth a total of 60 marks and students must answer any 5 of the 8 questions within the 2 hour time limit.

Uploaded by

Lindsay Summers
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Dr. G. D.

POL FOUNDATION
YMT COLLEGE OF MANAGEMENT
MMS SEM III

Mergers, acquisitions & Co. restructuring


Maximum Marks: 60

Time 2 Hrs

Date:
Instructions:
1. Answer any 5 .
2. All questions carry equal mark(12 M)

1.Explain symptoms & purpose of co. restructuring .


2.Explain types of mergers , merger waves , & SEBI guidelines for mergers &
acquisitions
3.Define Takeover .Explain different tactics of takeover defense
4 Explain Types of LBO desirable characteristics Of secured LBO candidate.
reasons for demergers & its Tax implications.
5.buy back
6.From following information determine human resource valuation & human resource
Accounting of key entrepreneurial employees.
Alpha Co. Ltd
Mr. Rao ,Mr. Banerjee & Mr. Sharma are heads of three major divisions of the co.
.Following are the details of overall compensation payable to them,during the year of
their tenure remaining
All amts are in Rs.
Divisional

Years of service

heads
1

4
1

Mr. X
Mr. Y
Mr. Y

85000
84000
75,000

87000
85000
72000

90000
80000
78000

82000

90000

Following are the key performance ratios of last three years


Performance ABC Co. Ltd
Ratios

Industry Average

Profitability
Investment

Years
1
9%
4

2
11%
4.5

3
13%
5

Years
1
6%
3.5

2
6.5%
3.7

3
7.5%
4

Turnover
Return on

20%

25%

30%

13%

66%

18%

owners fund
The relative significance of these performance ratio is approximately as follows
Performance Ratios

Industry Average

Profitability
Investment Turnover
Return on owners fund

(weightage)
35
25
40

Notes:1)The choice of Performance Ratios may vary from year to year depending on
Changing business environment
2) Weightages of these ratios are too vary, depending on the market pressures &
Companies priorities.
3) Compensation payable to these employees includes all projected benefits,
inflation effects& post retirement facilities
7Write short note(Any two)
A)BIFR
B)Antitrust Law
C) Role of Merchant banking in mergers & acquisitions
D)Demerger
Q.8 Following are the particulars of two companies,Altd & T ltd.
2

Particulars

A Ltd

T ltd

Earning after tax


Number of equity shares

3,00000
10,000

1,00,000
8,000

outstanding
EPS
P/E Ratio
Market Price

20
7
250

10
4
100

Calculate 1.Exchange ratio based on EPS & market price.


2. Value of firm

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