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(B) Define Cross border expansion. Discuss Reasons and benefits of Cross border expansion. 07 OR
Q.2 (B) A company issues 1000 equity shares of Rs 100 each at a premium of 10%. The company has
been paying 20% dividend to equity shareholders and expecting to keep same performance in future
years. Compute the cost of equity capital will it make any difference if the market price of equity
share is Rs 160? 07 Q.3 (A) Following are the particulars of two companies, A ltd and B ltd. You are
required to calculate exchange ratio and value of firm based on the market price. Consider A ltd as
acquirer & B ltd as Target firm. Particulars A ltd B ltd EAT 2,00,000 60,000 No of Equity Share
Outstanding 8,000 4,000 P/E Ratio 8 5 07 (B) Why do Firms Merge? And why do M & A quite often
fail? Discuss. 07 OR Q.3 (A) What are the main Powers of the Court with regards to