FM06
Management of Financial Services
(For CNM Cases)
Assignment – I
Assignment Code: 2016FM06A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Explain the significance of financial institutions in promoting economic growth.
2. “With the increasing adoption of information Technology, the banking in India has undergone a seachange.” Comment on this statement with particular reference to new Private Sector Banks.
3. What are the powers vested with SEBI to promote the development of securities market & to protect the interests of investors?
4. Do you believe that the Non-banking finance companies have played their role as effective financial intermediaries in India? Have they contributed to the economic growth?
Section-B
Case Study
Pankaj is considering a rights offering to raise funds to finance new projects which requires Rs.4.5 crore. The floatation cost will be 10% of funds raised. The company currently has 20 lakh shares outstanding & the correct market price of its share is Rs.100. The subscription price has been fixed at Rs.50 per share.
I. How many shares should be sold to raise the funds?
II. How many rights are required to buy one new share?
III. What is the value of one right share?
IV. Show the impact on the shareholder’s wealth who holds required rights to buy one new share if:-
a. He exercises his right
b. Sells his right
c. Does not exercise his right
Management of Financial Services
(For CNM Cases)
Assignment – I
Assignment Code: 2016FM06A1 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1. Explain the significance of financial institutions in promoting economic growth.
2. “With the increasing adoption of information Technology, the banking in India has undergone a seachange.” Comment on this statement with particular reference to new Private Sector Banks.
3. What are the powers vested with SEBI to promote the development of securities market & to protect the interests of investors?
4. Do you believe that the Non-banking finance companies have played their role as effective financial intermediaries in India? Have they contributed to the economic growth?
Section-B
Case Study
Pankaj is considering a rights offering to raise funds to finance new projects which requires Rs.4.5 crore. The floatation cost will be 10% of funds raised. The company currently has 20 lakh shares outstanding & the correct market price of its share is Rs.100. The subscription price has been fixed at Rs.50 per share.
I. How many shares should be sold to raise the funds?
II. How many rights are required to buy one new share?
III. What is the value of one right share?
IV. Show the impact on the shareholder’s wealth who holds required rights to buy one new share if:-
a. He exercises his right
b. Sells his right
c. Does not exercise his right
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