MU Mechanical Engineering (Semester 6)
E-Commerce & Industrial Finance
May 2012
Total marks: --
Total time: --
INSTRUCTIONS
(1) Assume appropriate data and state your reasons
(2) Marks are given to the right of every question
(3) Draw neat diagrams wherever necessary


1 (a) Varsha deposits Rs.10000 in the bank now. The interest rate is 10% and compounding is done semiannually. What will the deposit grow after 10 years? If the inflation rate is 8%, what will the value of deposit after 10 years in terms of current rupees?
5 M
1 (b) Equity stock of Arya Fertilizers is selling for Rs.195 per share. The firm is planning to issue right shares in the ratio of one right share for every six existing shares. Find the theoretical value of a right if subscription price is Rs.160. What is the ex-rights value per share if subscription price is Rs.170?
5 M
1 (c) Explain myths and realities of E-Commerce.
5 M
1 (d) Compare Microfinance v/s Macrofinance.
5 M

2 (a) The following information is available for xyz limited for year 2011-2012. Figures are in lakhs.
Profit and loss account data Balance Sheet
Beginning of the year End of the year
Sales 1550 Inventory 200 220
Costs of goods sold 1175 Accounts recievables 100 112
Accounts payable 64 70

Calculate the duration of operating cycle and cash cycle
10 M
2 (b) Explain Exchange rates. Also explain different types of exchange rates.
10 M

3 (a) Explain Internet Service Providers and Internet Standards and Specifications.
10 M
3 (b) What are the E transition challenges to Indian corporate sector.
10 M

4 (a) Explain the various ways of valuation of target company. Also explain Strategies and Tactical Issues.
10 M
4 (b) Explain the role and functions of a Finance Manager.
10 M

5 (a) Explain E-advertizing and E-branding.
10 M
5 (b) Calculate the ARR for the following projects based on the average investment and show which would be selected if the target rate of returns is 15%. Assume straight line depreciation over the life of project with zero scrap value.
Project A Project B Project C
Initial investment 12000 15000 20000
Net cash flow
Year 1 5000 5000 10000
Year 2 5000 5000 8000
Year 3 2000 5000 4000
Year 4 2000 8000 2000
Year 5 - 5000 -
10 M

6 (a) Why is profit maximization is not the goal of finance?
5 M
6 (b) Explain merger and takeover.
5 M
6 (c) Explain major trends in E-SCM.
10 M

7 (a) Explain different types of financial markets and the role of stock exchange.
10 M
7 (b) Explain sources of long term finance.
10 M



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