LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
FIFTH SEMESTER – April 2009
CO 5402 – FINANCIAL SERVICES
Date & Time: 30/04/2009 / 1:00 – 4:00 Dept. No. Max. : 100 Marks
PART – A
ANSWER ALL QUESTIONS (10 x2=20)
- Who is a merchant banker?
- What is the role of merchant banker in the issue of prospectus?
- Write a note on forfaiting in India.
- List out the key elements of factoring?
- What are the benefits of financial factoring?
- What do you understand by SPV?
- Write a note on hands-holding strategy of Venture Capital Institutions?
- Explain the term ESOP.
- What is consortium finance?
- What are the conditions laid down by SEBI pertaining to pre-issue obligations?
PART – B
ANSWER ANY FIVE QUESTIONS (5 x 8=40)
- What are the drawbacks of merchant banks?
- State the role of merchant bankers in a public issue.
- How do you evaluate lease from lessee point of view?
- What are the merits of leasing?
- What are the various types of factoring?
- Briefly explain the process of securitization.
- Write a note on First Chicago Model of venture capital.
- M/s. Digger Earthmoving Equipment wishes to purchase an equipment costing Rs.250000 having a life of 5 years and a residual value of Rs.50000 at the end of its life. The firm provides depreciation on original cost method. The firm’s revenue is expected to increase by Rs.150000 p.a. and raise its operating expenses (including depreciation and interest) by Rs.70000 p.a. Tax rate is 50% and the cost of capital is 10%. The asset can also be leased for a yearly rental of Rs.65000 p.a. Its incremental revenue will be Rs.150000 p.a. and the expected operating expenses Rs.60000 p.a. Evaluate the proposal.
PART – C
ANSWER ANY TWO QUESTIONS (2 X20=40)
- What is Venture Capital? What are the reasons for its slow growth in India?
- (a)Explain the process of forfaiting.
(b)Bring out the merits and demerits of forfaiting.
- Discuss the various types of leasing.
Latest Govt Job & Exam Updates: