FIBA721 4 [No.

of Printed Pages - 4]

Advise the company on the basis of the following 1-(P>

FIBA721 Enrol. No.
assumptions
[BMCF]

• depreciation is charged on the return down value END SEMESTER EXAMINATION: NOV.-DEC., 2021
method at 25%
MANAGEMENT OF FINANCIAL SERVICES
• tax rate is 35%
Time : 3 Hrs . Maximum Marks : 5 0
• cost of capital is 18%
Note: Attempt questions from all sections as directed.
lease rentals are paid at the end of the year Time value of money table to be provided.
Calculators are permitted.

I SECTION - A (20 Marks)

Attempt any four questions out of five.
Each question carries 05 marks.

1. Discuss the different types of NBFCs (Non banking

finance companies) in India.

2. Discuss the role of book running lead managers m

issue of capital.

3. Discuss what are chit funds also discuss how they

act as a source of capital for its members.

4. Discuss the various stages of funding for a startup .

P.T .O.
(100)
(1192)
(1192)
FIBA721 2 FIBA721 3

5. Explain a hire purchase agreement and the benefits (a) Determine what should be the cut off price for
to the hirer and hiree . the IPO of Newstar.

(b) Discuss the refund status for the bidders.

SECTION - B (16 Marks)
Attempt any two questions out of three.
8. Discuss how the emergence of private equity firms
Each question carries 08 marks.
has helped in financing new and existing businesses .

6. Discuss how fintech business models are enabling ease

of assessing financial s,ervices. SECTION - C (14 Marks)
(Compulsory)
7. New star enterprises and JKG Financials determine
the price band of Rs. 100 to Rs. 120 per share. The 9. Alpha limited is in the business of manufacturing steel
issue is for selling of 10,00,000 shares. The bid sheets. Th_e firm is planning to diversify into a new
received for the issue is provided in the table below : product line. The firm either can buy the required
machinery or get it on lease.
Price Bids received
(in Rs) (no. of shares) The new machine can be purchased for rupees
r
109 25,000 20,00,000. The expected life of the machine is 4 years
110 40,000 and has a salvage value of Rs . 2,00 ,000 after the
70,000 expiry of 4 years.
112
113 1,00,000
(i) The machine can be purchased by financing at
115 4,00,000
20 percent loan repayable in 4 equal annual
116 2,00,000 installments becoming due at the end of each
117 2,00,000 year.
118 1,00,000
119 50,000 (ii) Alternatively the machine can be taken on a
25,000 one year and lease rental of rupees 4,00 ,000
120
25,000 for 4 years.
122
P.T.0.
(1192)
(1192)