CRFE QUESTIONS

2009
1. Discuss the sources of value creation in horizontal and vertical merger. Or One of the greatest challenges being faced by investment bankers at the international market is how to ensure the success of the mergers and acquisition. Briefly discuss the various issues that contract the M& movements in the domestic as also in the international markets.

!. "#$lain the different methods of valuation that are used in connection with the merger and acquisition decisions. %hich of the above methods $roduce better valuation during the economic booms& Or %hat is takeover financing& Between cash $urchase' share swa$$ing and issue of loan stock which one is more $o$ular and why&

(. %hat do you understand by divesture& Discuss the motives of divesture and e#$lain the financial effects of divesture. Or a. %hat are the gains in s$in)off' s$lits)u$s and equity curve outs& b. "#$lain the distinguishing features of ma*or ty$es of +BO.

,. Discuss the meaning and the effectiveness of the following tools in takeover defenses. a. -olden $arachutes b. .oison $uts c. .oison $ills d. .ac Man Defense Or

Discuss the regulatory $rovisions in /ndian 0om$any over code regulating mergers and acquisitions.

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2. Define financial engineering and distinguish it from financial analysis. %hat are the driving forces behind evolution of the conce$t of financial engineering& Or %rite short notes on any two of the following. a. /nnovations in debt market b. 4ecuritization c. 4hare warrants and convertibles

2010
1. "#$lain the difference between managerial synergy' o$erating synergy and financial synergy and their relationshi$ to the different ty$es of mergers. Or "#$lain the rationale that the firms follow the conglomerate diversification. Briefly e#amine the different modes of value creation in the conglomerate mergers.

!. %hy the $ro$er valuation of the target com$any is is key to the success of the acquisition& +ist four methods of valuation and briefly set forth the advantage and limitation of each. Or Briefly e#$lain the various quantitative and qualitative $arameters that are $o$ularly used to measures the cost and benefits of the merger and acquisition.

(. "#$lain the mechanism of the s$in)off' s$lit)u$s and equity curve outs. %hat role does the information hy$othesis have in e#$laining the gains and the results from s$in)offs& Or %hat is strategic alliance and what are the different ty$es of strategic alliance& "#$lain the factors that contribute to the success of the strategic alliance and those that cause the strategic alliance to fail.

,. %hat is the bid strategy& %hat are its ob*ectives com$are the advantages and disadvantages of making a friendly bid rather than a hostile bid. Or %hy do managers resist hostile takeover bids& %hat are the different ty$es of defenses available to /ndian target com$anies&

2. "#$lain the conce$t of financial engineering. Discuss briefly the different micro and macro level factors that have caused the ra$id develo$ment of the financial engineering as an im$ortant segment of the cor$orate restructuring e#ercise. Or %rite short notes on any two of the following5 a. 0ollateralized Debt Obligation 60DO7 b. 8ybrid 4ecurities c. "4O. d. 4ecuritization

2011
1. "#$lain the relationshi$ between cor$orate growth and sustainable develo$ment of the economy. Discuss the different methods of cor$orate growth and their limitations. Or Distinguish between vertical and horizontal mergers. 8ow do the vertical mergers create value for the organization&

!. %rite a note on different methods of cor$orate valuation. %hich of these valuation method is most suitable during the $eriod of volatile market situation and why& Or Discuss the various methods of measuring the costs and benefits associated with mergers and acquisitions.

(. Define s$in)offs and differentiate it from equity curve outs. Discuss risk and benefits associated with s$in)offs and equity curve outs. Or %hat is +everage Buy Out& %hat are the different forms of +BOs& Discuss the techniques and risk associated with +BOs.

,. %hy do the management of some com$anies o$$ose the takeover of their com$anies& %hat are the various defenses are available to them against the takeovers& Or %rite a note on the im$ortant regulatory $rovisions under the draft takeover code regulating the takeover of com$anies in /ndia.

2. Define financial engineering and differentiate it from financial analysis. %hat are the motivating factors driving the financial innovations in the financial market&

Or %rite short notes 6any two7 a. 8ybrid financial security b. /nnovations in debt security c. 9isk associated with new financial instruments.