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NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: International Business
NMIMS December 2018 solved assignments: Contact us at assignmentssolution@gmail.com

Internal Assignment Applicable for December 2018 Examination
Assignment Marks: 30

Q1. ABC Pharmaceuticals have developed a new composition to fight an epidemic originating in
Alaska. A lot of investment in terms of money, time & manpower has undergone for this

development. What are the various ways through which ABC Pharmaceuticals can protect itself
so that no other company can copy their product composition? (10 Marks)
Q2. XYZ is a well-known cosmetic brand in India. With the rapid industrialization, the company
wants to expand its business abroad. As a Strategic manager prepare a report for the board of
members citing the various reasons for which the company should enter into an international
market. (10 Marks)
Q3. XYZ footwear is a leading Footwear company in India. They want to expand their
operations into international market. You have being hired as a consultant to XYZ to draft their
strategy for entering into international market.
A) What are the different strategies you will discuss in front of the board? (5 Marks)
B) Also share the various choices for XYZ footwear to enter an international market (5 Marks)

NMIMS December 2018 solved assignments: Contact us at assignmentssolution@gmail.com

Avail Customized solutions of NMIMS December 2018 assignments at nominal rates : Contact us at assignmentssolution@gmail.com

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2018 Examination

NMIMS December 2018 solved assignments: Contact us at assignmentssolution@gmail.com

Taking into account its target capital structure, how much of equity portion should the
company invest in these projects? If the company follows Irrelevance Approach
(Modigliani and Miller) or residual dividend policy, what will be its dividend payout ratio?
(10 Marks)
3. Hi-Tech company’s partial balance sheet for 2 years is given below

Current Assets (Rs. Lakhs)	Year 2017	Year 2018
Raw materials	20	30
Finished goods	15	15
Receivables	10	30
Other current assets	5	7
Current liabilities (Rs. Lakhs)
Creditors	25	35
Other current liabilities	15	20

Due to a new product launch, Hi-Tech’s sales grew at a faster pace in year 2018. HiTech’s working capital bank had been assessing its Maximum Permissible Bank
Finance (MPBF) under Method 1 till 2017, but due to a credit squeeze it suddenly
changed to Method 2 in year 2018.
a) What is the change in net working capital between 2018 and 2017? (5 Marks)
b) What is the change in MPBF limit assigned by the bank from year 2017 to 2018?
With this change in MPBF limit, will the working capital financing from the bank
increase or decrease? (5 Marks)
*************

NMIMS December 2018 solved assignments: Contact us at assignmentssolution@gmail.com

Customized solutions of NMIMS December 2018 assignments at nominal rates : Contact us at assignmentssolution@gmail.com

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2018 Examination
Assignment Marks: 30

NMIMS December 2018 solved assignments: Contact us at assignmentssolution@gmail.com

1. ABC Co. sells 10,000 units at a price of Rs. 10 per unit. ABC’s total fixed cost is
Rs. 20,000, Interest expense 10,000, and variable cost is Rs. 6 per unit. Find ABC’s
degree of operating leverage, degree of financial leverage and find degree of total
leverage.
ABC’s parent company has Rs. 2.5 million is assets that are currently financed by
100% equity. Its EBIT is Rs.600,000 and its tax rate is 30%. If ABC’s parent
changes its capital structure to include 40% debt, what is its ROE before and after
the change? Assume interest rate on debt is 10%. Comment why the ROE increases
after adding debt.
Assuming all other things remain same, how will the ROE change if interest on
debt is suddenly increased to 20% ? Elaborate on the same
(10 Marks)
2. Kuber Company has a target capital structure of 50% debt and 50% equity, with an
after tax cost of debt of 8%. Cost of retained earnings is 14%. Its profit after tax is
Rs, 250,000.
Kuber is considering the following projects to invest in
Project Size of project IRR of project
Project A 100,000 12.0%
Project B 120,000 11.5%
Project C 120,000 11.0%
Project D 120,000 10.5%
Project E 100,000 10.0%
Find the company’s weighted average cost of capital.
If the company accepts all the projects that it could invest in just from its profit after tax
and considering their IRRs, which projects should it take up? Give reason. What will be its
total investment in these projects?

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