Tuesday, 12 September 2017

Course: Financial Institutions and Markets

Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )

                          Course: Financial Institutions and Markets


             Internal Assignment Applicable for September 2017 Examination

Assignment Marks: 30

Instructions:

·       All Questions carry equal marks.
·       All Questions are compulsory
·       All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.
·       All answers to be written individually. Discussion and group work is not advisable.
·       Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
·       Students should write the assignment in their own words. Copying of assignments from other students is not allowed.
·       Students should follow the following parameter for answering the assignment questions. 

            



Question1. XYZ Ltd. is a Govt. recognized export house with annual turnover of Rs 2200 Crores Mr Pathak is Vice President- Finance of the Company. The company follows policy of no hedging of the US$ exposure. What all risks that Mr. Pathak has to enlists in his presentation to the management in a floating exchange rate scenario?                                                         (10 Marks)  

Answer1.

In a floating exchange rate scenario following are the risks associated for XYZ. Ltd that has to be tackled by the vice-president Mr. Pathak, the finance head of


Question2. PSL Bank Ltd. is a private sector bank. The treasury division has an immediate need to arrange Rs. 100 Crores to finance its one of the top corporate client. However the requirement is for very short period of around 7 days. So what sources are available for Mr. Das to raise the required fund, who heads the treasury divisions of the Bank?                                  (10 Marks)

Answer2.

The PSL Bank Ltd. can arrange its requirement of 100 cr. for its top corporate clients from the below mentioned sources.

Call/Notice Money:

·       The call money is a part of the money market where, day to day surplus funds, mostly of banks, are traded. Moreover, the call money market is most liquid of all short term money market segments.
·      The maturity period of all call loans vary from 1-


Question3a. LMH Ltd. Has floated an Investment Company. You are appointed as the CEO to spearhead the investment in secondary market. So to initiate these investments, explain the mechanism that you will follow.            (5 Marks)

Answer3a.

Secondary markets allow financial intermediaries to sell off risk exposure to other intermediaries. The secondary market price is determined endogenously by the net worth of financiers and bankers. When financiers have small net worth, the


Question3b. JFK Ltd. is listed Company on the exchange and the share price is quoted at Rs. 340 as of today, the Company reported EPS of Rs. 25.00 for FY 2017. In the recently concluded board meeting, the Company announced stock split and accordingly, the face value has been reduced to Rs5.00 from Rs. 10.00. The outstanding shares of the Company are 30, 00,000. Calculate the number of outstanding shares of the Company post stock split and adjusted share price of the Company post stock split. Also calculate the PE ratio of the Company post stock split                                                    (5 Marks)

Answer3b.

The company may want to change the face value.

i) So, it will take one share of Rs.10 and make it two.

Now, the face value of each share is Rs.5.

In the given question, the outstanding share is 30


Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )


No comments:

Post a Comment