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May 16, 2012

Board Exam Routine - 2012, june/july

 source:  http://visionapexcollege.blogspot.com/
 Date                  Course Title                Semester
 7-Jun-12    Organizational Relations    V
8-Jun-12    English I    I
9-Jun-12    Strategic Management II    VIII
10-Jun-12    Business Communication    III
11-Jun-12    Nepalese Business Environment    V
12-Jun-12    Business Mathematics I    I
13-Jun-12    Business Statistics     III
14-Jun-12    Management Information System    V
15-Jun-12    Financial Accounting I     I
16-Jun-12    Sociology    III
17-Jun-12    Finance II    V
18-Jun-12    Principles of Management    I
19-Jun-12    Management Accounting    III
20-Jun-12    Principles of Marketing    V
21-Jun-12    Computer Application     I
22-Jun-12    Macroeconomics    III
23-Jun-12    Human Resource Management    VI
24-Jun-12    Microeconomics    II
25-Jun-12    Strategic Management I    VII
26-Jun-12    Finance I    IV
27-Jun-12    International Business    VI
28-Jun-12    Programming Language    II
29-Jun-12    Operations Management    VI
30-Jun-12    Financial Accounting II    II
1-Jul-12    Data Analysis and Modeling    IV
2-Jul-12    Entrepreneurship    VI
3-Jul-12    Business Mathematics II     II
4-Jul-12    Psychology    IV
5-Jul-12    Business Law    VI
6-Jul-12    Fundamentals of Logic    IV
7-Jul-12    English II    II
8-Jul-12    Research Methodology    IV


Note:                                                               
1)    All the Examination starts from 10.00 a.m. The duration of Examinations shall be of

        hours.                                                       
2)     If the examination of particular subject or course cannot be held due to unavoidable 

       conditions, the examination of the particular date shall be held on the next day after 
       the last date of examination. However, the prior notice about it shall be given.            3)    For the practical exams, concerned college shall arrange on its own convenience.                                                           

Strategic Management - Model questions

source: www.visionapexcollege.blogspot.com 
Attempt all questions
1a. "Strategic management is not a box of tricks or a bundle of techniques. It is analytical thinking and commitment of resources to action". Justify your answer. 10 (Unit 1 Strategic Management)
b. Explain the components of socio cultural environment in reference to current scenario. 5 (Unit 2 External environment analysis and forecasting)
2  a. What does a manager mean by establishing company direction? Why do we need to set performance standard? Explain. 8 (Unit 3 Establishing Company Direction)
b. Define the term social responsibility. Name five valuable indicators of a firm's social responsibility. 7 (Unit 2 External environment analysis and forecasting)
3.  a. Explain the strategy making pyramid and its uses. 7 (Unit 3 Establishing Company Direction)
b. Discuss the methods of industry and competitive analysis. 8 (Unit 4 Industry and competitive Analysis)
4.  a. Explain the methods of assessing company's prices and cost competitive.8 (Unit 5 Evaluating company resources and competitive Capabilities)
b. What types of techniques would you apply to scan environment that influence food and beverage firm today? 7 (Unit 4 Industry and competitive Analysis)
5 a. What elements do you have to analyze to determine a company's internal position and its external opportunities and threats? 8(Unit 5 Evaluating company resources and competitive Capabilities)
b. What do you mean by grand strategies? Explain any two alternatives of the grand strategy. 7 (Unit 6 Strategic Options)
6 a. Explain your understanding of the concept of generic strategies and the conditions that suit the generic strategies. 10(Unit 6 Strategic Options)
b. What kind of

May 6, 2012

Corporate finance : Second Int Q 2 N 4 - Solution

source: www.visionapexcollege.blogspot.com


Q. No. 2:
a) Amount of capital budget = Rs 60 million – Rs 30 million = Rs 30 million
(b) Equity financing = 50% of Rs 30 million = Rs 15 million
(c) Internal equity = Rs 3 million
    External equity = Rs 15 million – Rs 3 million = Rs 12 million
(d)  Cost of debt after tax (kdt )= 10 (1 – 0.40)
                                             = 6%
Cost of preferred stock (kp) = 11%
Cost of internal equity (Kr) = 12%
Cost of external equity (ke) =( 4.8/114) + 0.08 = 12.21%
(e) WACC using cost of internal equity = 6 x 0.40 + 11 x 0.10 + 12 x 0.50 = 9.5%
 (f) WACC using cost of external equity = 6 x 0.40 + 11 x 0.10 + 12.21 x 0.50 = 9.61%


Q.No.4
(a)    Balance Sheet (common stock financing)
Assets
Rs
Liabilities and equity
Rs


Current liabilities (315,000-175,000)
140,000


Common stock, par Rs 1
140,000


Additional paid in capital
300,000


Retained earnings
45,000
Total assets
 625,000
Total liabilities and equity
625,000






Working note:
Common stock financing:
No. of new share = 350,000/7= 50,000; Total no of share = No of existing share + no of new share
                                                                                                     = 90,000 + 50,000
                                                                                                             = 140,000
 Par value = 140,000 x 1= Rs 140,000
Additional paid in capital = (7 – 1) x 50,000 = Rs 300,000
Assets
Rs
Liabilities and equity
Rs


Current liabilities (315,000-175,000)
140,000


Common stock, par Rs 1
133,750


Additional paid in capital
306,250


Retained earnings
45,000
Total assets
 625,000
Total liabilities and equity
625,000
                                                         Balance Sheet (after conversion of convertible bond)






Working note:
No of new share = no of debenture x conversion ratio
Conversion ratio =1000/8 =125
No of debenture = 350,000/1000= 350
No of new share = 350 x 125 = 43,750
Total no. of share= 90,000 + 43,750 = 133,750
Par value = 133,750 x 1 = Rs 133,750
Additional paid in capital = 43,750 x  (8 – 1) = Rs 306250
Assets
Rs
Liabilities and equity
Rs


Current liabilities (315,000-175,000)
140,000


7% Debenture
350,000


Common stock, par Rs 1
133,750


Additional paid in capital
306,250


Retained earnings
45,000
Total assets
 975,000
Total liabilities and equity
975,000
                                            Balance Sheet (after exercise of warrants)







Working note:
No of new share = no of debenture x exercise ratio
Exercise ratio = 125
No of debenture = 350,000/1000= 350
No of new share = 350 x 125 = 43,750
Total no. of share= 90,000 + 43,750 = 133,750
Par value = 133,750 x 1 = Rs 133,750
Additional paid in capital = 43,750 x  (8 – 1) = Rs 306250
(b)
                                  Income statement

All equity financing
After conversion
After exercise
EBIT
Rs 125,000
Rs 125,000
Rs 195,000
less: interest
-           
-           
24,500
EBT
125,000
125,000
170,500
less; taxes (40%)
50,000
50,000
68,200
EAT
75,000
75,000
102,300
No of share
140,000
133,750
133,750
EPS = EAT/No of share
Rs 0.54
Rs 0.56
Rs 0.76
(c) Mr. Harry should choose the debenture with warrant because this alternative has the highest EPS than other alternatives.