Explain the terms.
[14 marks]Volatility
[ marks]Underwriting
[ marks]Junk Bonds
[ marks]LBO
[ marks]FPO
[ marks]Asset backed securities
[ marks]Enterprise Value (EV)
[ marks]Explain Investment Bank’s Role and Core functions in Financial Markets.
[7 marks]Discuss Principal businesses of Investment Banks also throw light on Regulatory Framework for Investment Banks in India as well as across Globe.
[7 marks]Differentiate between Investment Banking and Commercial Banking.
[7 marks]Write a note on Merchant Banker’s Role in Pre Issue obligations of IPO in India.
[7 marks]Stock Market Indices are barometer of an economy. Discuss methodologies used to calculate these indices with suitable examples.
[7 marks]Explain different entity’s role in clearance and settlement in secondary market.
[7 marks]Credit Rating has crucial importance across Globe. Explain its core BFMF rating methodology.
[7 marks]Explain with suitable example Enterprise value and key trading multiples of valuation.
[7 marks]Write a note on Private Equity as an important source of Funding.
[7 marks]Write a note on Merchant Banker’s Role in Post Issue obligations of IPO in India.
[7 marks]Explain Leverage Buyout and different forms of LBO. Also discuss advantages and disadvantages of LBO. Page 1 of
[2 marks]CASE STUDY: Aparajit & Co.Ltd is a target company for Invest bank where you are Serving as chief Manager. After appropriate Financial Scrutiny company’s Data is as follows. Company has total equity value of 451 lacs, total debt of 238 lacs and Cash equivalent worth value of 124 lacs. Tax rate applicable is 20%. (in Lacs) Year 2015 2016 2017 2018 2019 Revenue 3960 4080 4200 4326 4458 Raw 1782 1792 1806 1860 1917 Materials Production 870 897 924 996 1026 Cost Other Costs 396 408 420 432 447 EBITDA 912 981 1050 1038 1068 Depreciation 330 315 300 300 300 EBIT 582 666 750 738 768 To apply DCF valuation future cash flow is also projected considering all the Required factors. Outcome of said projection is depicted as below. Financial Structure of the company is as follows: Equity -66.67% , Debt-33.336%, Cost of equity- 10% and Cost of Debt – 6% FCF (Estimated) (in Lacs) Year 1 2 3 4 CF 5862 5484 6574 7500 7854 Terminal Value at the end of the projected period is considered as 5500 lacs. WACC is advised to discount the FCF and Terminal Value. Based on above mentioned details calculate EV. Also derive EV to EBITDA and EV to EBIT trading multiple. Share your expert advices on this derived Trading multiples and EV.
[14 marks]You are advised to do apply DCF valuation. Calculate WACC and derive enterprise value. Also Share your inference with regards to said calculations. Page 2 of
[2 marks]