What are the advantages and disadvantages of equity capital


Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224


PROJECT MANAGEMENT


Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal Marks

CASE STUDY : 1
A project has begun on 1st April 2005 and was expected to be completed by 31st December 2005. The project is being reviewed on 30th September 2005. When the following information has been developed. Budgeted Cost for Work Scheduled (BCWS) Rs. 60,00,000 Budgeted Cost for Work Performed (BCWP) Rs. 55,00,000 Actual Cost of Work Performed (ACWP) Rs. 58,00,000 Budgeted Cost for Total Work (BCTW) Rs.100,00,000 Additional Cost for Completion (ACC) Rs. 50,00,000

Determine the following.
Q1) Cost variance
Q2) Schedule variance in cost terms
Q3) Cost Performance Index
Q4) Schedule Performance Index
Q5) Estimated Cost Performance Index

CASE STUDY : 2
Praveen Bhargava, a Ph D in molecular biology, is working as a professor in the International Science Institute, based on this research work, he has developed an enzyme which he believes has commercial potential. Praveen has set up Enzy Laboratories to commercially develop the product. Enzy Laboratories has approached Gamma Venture Capital with a funding request for Rs 200 million by way of equity. Gamma requires a rate of return of 30 per cent from its equity investment in Enzy and its planned holding period is 5 years. Enzy has projected an EBITDA of Rs 300 million for year 5, which Gamma considers to be credible. Gamma believes than an EBITDA multiple of 6 for year 5 to be reasonable. At the end of year 5, Enzy is likely to have a debt of Rs 200 million and a cash balance of Rs 80 million.

Q1) What share in equity of Enzy will Gamma ask for?
Q2) What factors generally influence valuation of VC deals?
Q3) What incentive mechanisms are usually incorporated in VC deals?
Q4) Discuss the considerations an entrepreneur like Praveen Bhargava should bear in mind while approaching a VC Fund?

CASE STUDY : 3
ABCL is a movie production company set up by three persons with experience in the movie industry about six years ago. One of them is a leading star and he owns 50 percent equity of ABCL. The other two own 25 percent each. ABCL’s recent movie “The Dream” turned out to be a blockbuster at the box office. Enthused by this success, the promoters want to double the number of movies produced by the company. To achieve this goal, the company plans to raise Rs 50 crore from external sources.

Q1) Discuss the term equity?
Q2) Discuss the rights of equity shareholder?
Q3) What are the advantages and disadvantages of equity capital?
Q4) Suggest the financing method that seems most appropriate for each situation and give your reasons for the same.

CASE STUDY : 4
Janakiram is considering an investment which requires a current outlay of Rs 25,000. The expected value and standard deviation of cash flows are – The Cash flows are perfectly correlated.

Q1) Calculate the expected net present value and standard deviation of net present value of this investment, if the risk free interest rate is 8 per cent?
Q2) Discuss the risk adjusted discount method?
Q3) Discuss the techniques of risk analysis?
Q4) What are the advantages of employing the probability distributions of key factors underlying investment decisions? Year Expected Value (Rs) Standard Deviation (Rs)
1 12,000 5,000 2 10,000 6,000 3 9,000 5,000 4 8,000 6,000


Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224



Comments

Post a Comment

Popular posts from this blog

The Marketing manager of AMK Enterprises, Roopali

Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Principles and Practice of Management Case Studies Case (20 Marks) In a shipping department of a company, there were two supervisory staff namely one foreman of stores and one Senior Store Keeper. They were assisted by two Assistant store Keepers and 10 workers. The shipping department was responsible for clearance of all the inward stores against the various purchases made and dispatches of the stores to all the demanding units without any delay. It was observed that there was no delay in unloading the inward trucks bringing the stores but there was always a delay in loading the trucks going outwards for delivery of stores. It was generally delayed and loading was being completed during overtime only. This caused loss to the company due to the payment of overtime allowances to the staff. It also...
Read more

R.K. Industries Ltd., intends to launch a new folding exercise cycle in Indian market. As a marketing manager which steps would you like to take while launching this product

Image
Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Marketing Management Answer the following question. Q1. What is Non store retailing? (10 marks) Q2. Explain Personal selling. (10marks) Q3. Explain Warehousing and Inventory Decisions. (10marks) Q4. R.K. Industries Ltd., intends to launch a new folding exercise cycle in Indian market. As a marketing manager which steps would you like to take while launching this product? How will you conduct the test marketing for this product. Make necessary Assumptions and justify your answer. (10marks) Q5. Discuss the role & importance of physical distribution in the consumer products marketing. (10 marks) Q6. What are the various types of Brand Extensions. Explain with necessary examples wherever required. (10 marks) Q7. Give the stepsin launching a new product. Also give various methods of ...
Read more

What may be reasons of WalMart failure in Korea

Image
Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 International Business Case Studies CASE STUDY (20 Marks) Mode of settlement of disputes/differences arising out of national or international contracts are settled through Arbitration. However, when a dispute/difference arises, both the purchaser and the supplier shall first try to resolve the same amicably by mutual consultation. If the parties fail to resolve the dispute by such mutual consultation within twenty one days, then, depending on the position of the case, either the purchaser or the supplier shall give notice to the other party of its intention to go for arbitration as per the contract. When the contract is with domestic supplier, the applicable arbitration procedure will be as per Indian Arbitration and Conciliation Act, 1996. When the contract is with foreign supplier, the supplier...
Read more