SMU MBA ASSIGNMENTS

SEMESTER 3 – FINANCE

SEM 3 FINANCE FALL 2013

MF0010 & SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

1
Financial markets bring the providers and users in direct contact without any intermediary. Financial markets permits the businesses and governments to raise the funds needed by sale of securities. Describe the money market/capital market — features and its composition.
A
Money market- features and composition
Capital market-features and composition
5
5
10
2
Risk is the likelihood that your investment will either earn money or lose money. Explain the factors that affect risk.
Mr. Rahul invests in equity shares of Wipro. Its anticipated returns and associated probabilities are given below:
Return -15 -10 5 10 15 20 30
Probability 0.05 0.10 0.15 0.25 0.30 0.10 0.05
You are required to calculate the expected ROR and risk in terms of standard deviation.
A
Explanation of all the 4 factors that affect risk
Calculation of expected ROR and risk in terms of standard deviation
4
6
10
3
Explain the business cycle and leading coincidental & lagging indicators. Analyse the issues in fundamental analysis.
A
Analysis and explanation of the issues in fundamental analysis all the four points
6
4
10
4
Discuss the implications of EMH for security analysis and portfolio management.
A
Implications for active and passive investment
Implications for investors and companies
5

10
5
Explain about the interest rate risk and the two components in it.
An investor is considering the purchase of a share of XYZ Ltd. If his required rate of return is 10%, the year-end expected dividend is Rs. 5 and year-end price is expected to be Rs. 24, Compute the value of the share.
A
Introduction of interest rate risk
Explanation of two components of interest rate risk
Calculation of value of the share
2
4
4
10
6
Elucidate the risk and returns of foreign investing. Analyse international listing.
A
Explanation of all the points in risks and returns from foreign investing
Introduction of international listing
7
3
10

MF0011 & MERGERS & ACQUISITIONS

1
Give the meaning of advantages and disadvantages of mergers and acquisitions. Explain the types of Mergers and Acquisitions.
A
Explanation of types of mergers and acquisitions
5
5
10
2
Write a note on the five-stage model of mergers and acquisitions.
A
Explanation on five stage model of mergers and acquisitions
10
10
3
What do you understand by creating synergy? Give the prerequisites for the creation of synergy.
Describe the important forces contributing to mergers and acquisitions.
A
Introduction of creating synergy
Pre requisites for the creation of synergy
Important forces contributing to mergers and acquisitions
2
3
5
10
4
Demerger results in the transfer by a company of one or more of its undertakings to another company.
Give the meaning of demerger. What are the characteristics of demerger? Explain the structure of demerger with an example.
A
Introduction of demerger
Characteristics of demerger
Structure of demerger with example
2
3
5
10

5
Explain Employee Stock Ownership Plans (ESOP). Write down the rules of ESOP and types of ESOP.
A
Introduction of ESOP
Rules of ESOP
Types of ESOP
2
6
2
10
6
Explain the factors in Post-merger Integration. Write down the five rules of Integration Process.
A
Factors in Post-merger Integration
Five rules of Integration Process
5
5
10

MF0012 & TAXATION MANAGEMENT

1
Explain the concept of tax planning and the factors to be considered in tax planning. Give the difference between tax planning and tax evasion.
A
Concept of tax planning
Factors in tax planning
Differences between tax planning and tax evasion
2
3
5
10
2
Explain the process of tax payment.
A
Explanation of whole process of tax payment through:
Individuals
Partnerships
Companies
4
2
4
10
3
Write short notes on:
Capital gain
Cost of acquisition
Cost of improvement
Expenditure on transfer
Transfer
A
Each short note carries 2 marks each-(5*2= 10 marks)
10
10
4
Explain the computations of Tax in two aspects given below:
Tax provision for Computation of Total income of firms
Computation of partnership firms’ book profit.
A
Steps to be explained for the computation of total
income of firms
Steps for computation of partnership firms
5
5
10
5
Explain the service tax law in India. Give the concept of negative list.
A
Introduction of service tax law in India
Concept of negative list
5
5
10
6
Identify and explain the major considerations in capital structure planning. Explain two approaches in dividend policy and factors affecting dividend decisions.
A
Major considerations in capital structure planning
Two approaches in dividend policy
Factors affecting dividend decisions
6
2
2
10

MF0013 & INTERNAL AUDIT & CONTROL

1
Define and explain the term auditing. “Personal qualities of an auditor are important for the successful conduct of audit”. Comment
A
Definition of auditing
Explanation of auditing
Qualities of an auditor
2
3
5
10
2
Write the key objectives of a good internal audit system. Narrate the points of dissimilarities between external audit and internal audit.
A
Key objectives of a good internal audit system
Dissimilarities between external audit and internal audit.
5
5
10
3
Give the role of internal auditor in the Company’s Management. List down the duties of auditor Under Section 581ZG.
A
Role of internal auditor in the company’s management
Duties of auditor u/s 581ZG
7
3
10
4
The effectiveness of the internal control system can be ensured if the important aspects of the company’s operations are kept in mind.
Explain the characteristics of an effective internal control system. Write the elements of internal control.
A
Characteristics of an effective internal control system
Elements of internal control
4
6
10
5
Describe general EDP controls. Explain the appraisal of accounting system and related internal control.
A
General EDP controls
Appraisal of accounting system and related internal control.
4
6
10
6
Explain the internal control systems in insurance companies. Write down about the reporting internal control weaknesses.
A
Internal control systems in insurance companies
Reporting internal control weaknesses