Friday, 4 August 2017

LIMBDI Ltd started a chain of hotels with “profit maximization” as the b...





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Corporate Finance

Question 1
TATA Steels is looking forward for entering into a joint venture with United States Steel Corporation in USA. The company is planning to access funds from the international market. Discuss
·        Meaning of the overseas sources of finance
·        Why the company wants to raise fund from international market?
·  Methods which can be employed by the company to raise fund from the international market.
·       Is it advisable that company should go for Sourcing equity globally?

Question 2
LIMBDI Ltd started a chain of hotels with “profit maximization” as the basic financial objective and TEBDI Ltd started with a portfolio management company with the basic objective as “wealth maximization”. In light of the relevant concepts of financial management give your opinion on “which company will surely survive in long run” and why?

Question 3
Kabra Motors is considering a proposal to install new machine. The initial capital
outflow will be 15 lacs. The expected cost of capital is 12 %. The expected cash inflows from the operations will be as under -

Year

Cash inflows

1

2

2

3

3

4

4

5

5

5

a) Calculate the NPV of the proposal. And give your opinion whether to accept or reject the proposal.
b) Calculate the profitability index and give your opinion whether to accept or reject the proposal.


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One of the European company engaged in the manufacture of highly special...





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Consumer Behavior

1. Kellogg launched cornflakes as a breakfast food in Indian market, they were not able to penetrate the Indian market effectively, explain what could be the main reason for not able to penetrate Indian breakfast segment effectively, and they made certain changes in product positioning, what are the changes incorporated by them.

2. One of the European company engaged in the manufacture of highly specialized artificial nose (Electronic Smell Sensor), which has varied application in various industries, however they are planning to find out the market opportunity for their product in the food segment in India. Prepare a detailed questionnaire keeping in mind food Industry in mind (Example – Fast food chains to identify quality of the food etc.).

3. An International company that is very well-known for Perfume brands in both the categories of men and women. The company has their own manufacturing unit and marketing team.
a. Discuss the market entry strategy from the point of Indian culture.
b. Make steps you will consider pre-launch- explain each step logically.


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Your Company is diversifying into online retail business and HR Departme...







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COMPENSATION AND BENEFITS

Q.1) Your Company, a technology start-up in the area of telecommunication services, has decided to formulate compensation strategies. Before penning down the strategies, the HR Manager considers it necessary to identify factors that influence the compensation strategies. You, as an employee of HR Department, are assigned this task of identifying these factors.

Q.2) Your Company is diversifying into online retail business and HR Department is busy dealing with compensation challenges. HR Department has decided to conduct the Wage Survey in order to determine the compensation system for the organization. You are given the task of suggesting the type of survey suitable for your organization. In this light, identify different types of wage surveys and recommend a type for your organization.

Q.3) ABC Ltd is a newly incorporated company in financial services sector. They are a company providing consultancy to other companies in the area of financial planning for the employees in that respective organization. They are into their third year of operations and have a strength of 75 employees and their target market is Mumbai region with no sector specific segmentation. You are working as an HR Manager in ABC Ltd and you are supposed to solve following problems:

a) ABC Ltd is yet to provide to its employees legally required benefits. As an HR Manager, you are supposed to list the legally required benefits for employees in ABC Ltd.

b) Company is also considering the option of providing fringe benefits to its employees. You are supposed to suggest the fringe benefits that your company can provide to its employees.


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Mr Saran Kumar, aged 35, is employed with Mumbai University as a Lectur...









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Capital Market and Portfolio Management

1. Mr. Shabd Kumar has to make a choice of investment between the two stocks, namely A and B. The possible returns with the associated probabilities of their occurrence for both stock A and B have been provided in the Table given below. Based on the data provided in Table which stock he should choose to invest in?

Stock
A

Stock
B

Probability

Return

Probability

Return

10%

-10%

35%

15%

15%

0%

25%

10%

20%

5%

20%

20%

25%

25%

10%

-10%

30%

15%

10%

25%


2. Mr. Saran Kumar, aged 35, is employed with Mumbai University as a Lecturer in the English Department. He is the sole earning member of his family. He stays in a joint family with his parents, his wife and two children aged 5 years and 2 years. He has been deploying his savings in primarily in bank fixed deposits and other tax savings instruments such as Public Provident Fund (PPF) etc. However, he is not sure that whether his savings would be adequate to meet future financial needs of his family or not. His friends have been suggesting him to invest in stock market and have been giving him tips also for specific stocks. Mr. Saran is reluctant to follow his friends’ advice as his uncle had lost significant amount of money in the stock market around 10 years back. Not only his uncle had to sell off his house and his wife’s jewelry to compensate for the loss incurred but the whole family had also faced loss of reputation with relatives and friends. Torn between the choice of losing money in the stock market or ending up with insufficient savings to meet his future needs and exigencies, he decides to seek professional help to solve his problem. He approaches his bank manager for his advice. The bank manager directs him to you for further discussions. You are employed in the Wealth Management Department of the bank. The department’ role is to advise the bank’s client and offer tailor -made solutions with respect to the client’s investment needs.
Discuss how should I go about investing my savings? Is there a way that I make enough money without losing may savings? If yes, how? Provide your rationale for the same.

3. Historical price of Stock A and the closing level of a Market Index is provided in the Table given below.

As on December 31

Price of Stock A

Closing level of the market index

2000

23

1264

2001

22

1059

2002

40

1094

2003

114

1880

2004

128

2081

2005

139

2837

2006

113

3966

2007

199

6139

2008

106

2959

2009

153

5201

2010

171

6135

2011

127

4624

2012

135

5905

2013

107

6304

2014

166

8283

2015

214

7946

2016

325

8186

a) Calculate Beta of the stock A.
b) The Table given below gives the expected market index values for 31 December 2017 and the associated probabilities of occurrence for the same.


Probability

Closing level of the market index

10%

7500

15%

8000

20%

8500

25%

10000

30%

9000

If the 10 Year Government of India Bond (G-Sec) yield is 7%. What is the expected prices of the stock A as on 31 December 2017?


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Brand Ambassador plays an important role in creation of a Brand Company...







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BRAND MANAGEMENT
Case Study:                            
1. A company has launched a new cola drink “Fresh Cola” in the Indian Market. The main feature of Fresh cola is that it has the least amount of calories in it. The company is facing a tough competition from Pepsi and Coke. The company hires you as a brand strategist and ask you to find out various positioning strategies and recommend the best positioning for the Brand “Fresh Cola”.

2. Brand Ambassador plays an important role in creation of a Brand. Company has asked you to suggest five brand ambassadors for “Fresh Cola”. Introduce the importance of Brand Ambassador and your selection of five Brand ambassador for “Fresh Cola” with reason.

3. A) Every company tries to take advantage of Brand Extension. Assume “Fresh cola” becomes a top brand in the Indian Market. You have been asked to identify and explain various types of extension and suggest one extension that would go well with the Brand “Fresh Cola”.

3. B) Assume you are planning to buy a new mobile for yourself. You are now confused with the problem of plenty of choices. Explain the various stages of Consumer decision making process that you will undergo to purchase the mobile of your choice.


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