Contents Chapter 1 FINANCIAL POLICY

1. 1

AND

CORPORATE STRATEGY

Economic Feasibilit y

2. 23

Managerial Competence

2. 24

Projec t Appraisal under Inflationar y Conditions

2. 25

Margin Money

2. 26

Promoters Contribution

1

Strategic Planning

2

1. 2

S teps in Strategic Planning

1. 3

Fac tors Influencing Business Firm

1. 4

Strategic Financial Management

29

1. 6

Meaning of Fo recast

1. 7

Meaning of Financial Fo recasting

1. 8

Techniques of Financial Fo recasting

........................................................................................................

4

Chapter 3

5 5

RISK FACTOR

6

1. 9

B enefits of Financial Fo recasting

1. 10

Ex ternal Funds Requirement (EFR)

1. 11

Internal Growth Rate (IGR)

1. 12

Sustainable Growth R ate (SGR)

1. 13

Financial Planning

1. 14

S teps in Financial Planning Process

29

29

Practical Examination Problems

4

6

7 8

9 9

10

11

IN

CAPITAL BUDGETING

33

3. 1

Meaning of Capital Budgeting

3. 2

Time Value of Money and Discounting of Cash flo ws

3. 3

Assumptions in Use of DCF Techniques

3. 4

Payback Period Method

3. 5

Accounting R ate of Return Method

3. 6

Net Present Value Method

3. 7

Internal Rate of Return (IRR) Method

PROJECT PLANNING

2. 1

AND

CASH FLOWS ESTIMATION

Capital Investment Decision Process

34 35

36 37

3. 8

Relative Ranking of Projec ts : IRR vs. NPV

3. 9

Profitabilit y Index (PI) Method

3. 10

Disc ounted Payback Period Method

3. 11

Terminal Value Method

Capital Investment Process

2. 3

B enefits of Projec t Management

3. 12

Adjusted Present Value (APV )

42

3. 13

Meaning of Capital R ationing

42

16

41

43

3. 14

Fac tors Leading to Capital R ationing

3. 15

Impac t of Inflation on Capital Budgeting

3. 16

Synchronized and Differential Inflation

43

3. 17

Money Cash Flows and Real Cash Flows

43

3. 18

Impac t of Taxation on Capital Budgeting

3. 19

Impac t of Investment Incentives on Capital Budgeting

3. 20

Replacement or Retirement of an Asset

3. 21

Reasons for Replacement or Retirement of an Asset

3. 22

Appraisal of Replacement Decisions

3. 23

Non-financial Fac tors In Capital Investment Decisions

17 18

2. 4

Projec t Organization Struc ture

2. 5

Use of Computers In Projec t Management

18

19

2. 6

S WOT Analysis

2. 7

Ze ro Date of a Projec t

19

19

2. 8

Financial Closure

2. 9

B rown Field Projec t

20 20

2. 10

Resource Le velling

2. 11

Initial S elec tion of P rojec t Ideas

2. 12

Feasibilit y Study Repor t

2. 13

Market Sur ve y

20

20

Strategic Focus in Projec t Planning

21

2. 15

Social Cost B enefit Analysis (SCBA)

21

2. 16

Indicators of Social Desirabilit y of a Projec t

2. 17

Detailed Projec t Repor t

2. 19

Projec t Appraisal by Financial Institutions

2. 20

Financial Feasibilit y

2. 21

Technical Competence

49

3. 26

Meaning of Unce r taint y

3. 27

R isk-Return Relationship in Projec t S elec tion

3. 28

Meaning of R isk Managemen t

3. 29

Objec tives of R isk Management

49 49

51

Steps in R isk Management Process

3. 31

Application of R isk Management in New Projec t

3. 32

Enterprise Risk Management (ERM)

3. 33

Probabilit y Analysis

25

C-11

51

3. 30

27

52

49

50

25

46

46

Business R isk and Financial R isk

22

46

46

Meaning of R isk

22

Contents in D etailed Projec t Repor t

44

3. 25

22

2. 18

43

3. 24

21

2. 14

39

40

41

17

2. 2

33

34

........................................................................................................

Chapter 2

28

28

Theoretical Examination Questions

3

Objec tives of Finance Func tions

Practical Examination Problems

27

2

1. 5

Theoretical Examination Questions

27

2. 22

51

51

48

C-12

Contents

52

3. 34

Theor y of Probability

3. 35

Impor tant Terms in Probabilit y Theor y

3. 36

Ad vantages and Disadvantages of

52

52

Probabilit y and Expec ted Value

54

3. 37

Worst Possible and Best Possible Estimate s

3. 38

Optimistic, Most Likely and Pessimistic Estimate s

3. 39

Value of Information

3. 40

Value of Pe r fec t Information

3. 41

Value of Imper fec t Information

3. 42

S ensitivit y Analysis

3. 43

Standard Deviation and Coefficient of Variation

3. 44

Hillier ’s Model for R isk Analysis

3. 45

Ce r taint y Equivalent Approach

3. 46

R isk Adjusted Discount Rate

3. 47

Projec t B eta

3. 48

Capital Struc ture and B eta Values

3. 49

Symbols used in Calculation of P rojec t B eta

54

55 56 56

57 58

60 60

60

61

Dividend on Preference Share s

5. 6

D e terminants of Dividend Polic y

5. 7

Tax considerations in Dividend Decision

5. 8

Constant Dividend Payout Polic y

62

152

5. 11

Optimum Dividend Polic y

5. 12

Gordon Growth Valuation Model

5. 13

Assumptions of Gordon Growth Valuation Model

5. 14

Criticism on Gordon Growth Model

5. 15

Walte r ’s Valuation Model

5. 16

Assumptions of Walter ’s Valuation Model

5. 17

Implications of Walte r ’s Model

5. 18

Modigliani and Miller ’s Dividend Irrelevanc y Theor y

5. 19

Assumptions of MM Dividend Irrelevanc y Theor y

........................................................................................................

Chapter 4

155

116

4. 1

Definition and Meaning of Lease Financing

4. 2

Features of Lease Contrac t

4. 3

Financial Lease

4. 4

Operating Lease

4. 5

S ale and Lease Back

4. 6

Leveraged Lease

4. 7

S ales Aid Leasing

4. 8

Struc ture of Lease Rentals

4. 9

Effec ts of Leasing in Financial Statement s

4. 10

Tax Effec ts of Leasing

4. 11

Ad vantages of Leasing

4. 12

Disadvantages of Leasing

4. 13

Methods for Evaluation of Lease or Buy D ecisions

4. 14

Cross B o rder Leasing

4. 15

Distinc tion bet ween Leasing and Hire Pu rchase

116

116 117 117

117 118 118 118

119 120 120 121

122 122

123

123

5. 1

AND

Meaning of Dividend

SHARE VALUATION

148

5. 2

Terminology on Dividend D eclaration

5. 3

Interim Dividend

5. 4

Final Dividend

148 149

155 156 157

159

182

Meaning of Capital Marke t

182

6. 2

Kinds of Capital Marke t

6. 3

Kinds of Capital Issues

6. 4

Methods of Issue of Stocks in Primar y Capital Market

6. 5

Free Pricing of Issues

6. 6

Transac tion Costs in Capital Marke t

6. 7

Disadvantages of Flotation

6. 8

Green Shoe Option

6. 9

Fund Raising Through R ights Issues

6. 10

Reasons for a R ights Issue

6. 11

Advantages of R ights Issue

6. 12

Valuation of R ight s

6. 13

Valuation of Share after R ights Issue

6. 14

Employee Stock Option Plans (ESOPs)

6. 15

Corporate B ond Market

182

183

148

184

184

184 185

185 185

185 186 187

187

6. 16

Meaning of Stock Market

6. 17

Kinds of Stock Marke t

188

188

6. 18

Reasons for Transac tions on S econdar y Market

6. 19

Meaning of Stock Exchange

6. 20

S e r vices of Stock Exchanges

6. 21

Listing of S ecurities on Stock Exchange

........................................................................................................

DIVIDEND DECISIONS

155

159

LEASING DECISIONS

Chapter 5

154

154

INDIAN CAPITAL MARKET

6. 1

Practical Examination Problems

153

Chapter 6

63

Theoretical Examination Questions

152

........................................................................................................

Theoretical Examination Questions

Practical Examination Problems

151

Constant Dividend Rate Polic y

Variants of Constant Dividend Polic y

Practical Examination Problems

62

Decision Tree Analysis

150

151

5. 10

Theoretical Examination Questions

3. 50

149

5. 9

61 62

149

5. 5

189 189

6. 22

Advantages of Listing of S ecurities

6. 23

Screen B ased Tr ading System

189

190

190

191

6. 24

Scripless Tr ading

6. 25

D emat Tr ading

6. 26

Rolling S ettlement

6. 27

S ecurities Lending and B orrowing Scheme

191 191 192

188

183

Examination Series

192

6. 28

Shares Buyback

6. 29

Reasons for Shares Buyback

6. 30

Shares Repurchase Price

6. 31

Impac t of Shares Buyback on Shareholding Pattern

6. 32

Stock Split

6. 33

B ook Building

6. 34

Benefits of B ook Building

6. 35

Limitations of B ook Building

6. 36

Insider Trading

6. 37

Asset S ecuritization

6. 38

Struc ture of S ecurities in Asset S ecuritization

6. 39

Ad vantages of Asset Securitization

192

193 194

195 195 196 197

S elec tion of Securities

7. 32

Valuation of Warrant s

7. 33

Ad vantages of Warrant s

7. 34

Valuation of B onds

7. 35

Meaning of Financial Engineering

7. 36

Fac tors contributing to Financial Engineering

7. 37

Features of Financial Engineering

Chapter 8

199

199

200

200

8. 1

........................................................................................................

AND

223

223 225 226

226

227

227

........................................................................................................

198

DERIVATIVES

CAPITAL

222

Practical Examination Problems

Practical Examination Problems

C-13

221

7. 31

Theoretical Examination Questions

197

Theoretical Examination Questions

Chapter 7

Strategic Financial Management

MONEY MARKET INSTRUMENTS

207

7. 1

Equit y Shares

7. 2

Preference Share s

7. 3

Sweat Equit y Share s

7. 4

Non-voting Shares (NVS)

7. 5

Tracking Stocks

7. 6

D e b e nt u re s

7. 7

Debentures and Share Capital : Distinc tion

7. 8

Conve r tible D ebenture s

207 207 208

208

208 209

209

7. 9

Valuation of Conve r tible D ebenture s

7. 10

Ze ro Inte rest Bond (ZIBs)

7. 11

Equit y Warrants with NCDs

7. 12

S ecured Premium Notes (SPN)

210

211 211 211

212

7. 13

Deep Discount B ond

7. 14

Ze ro Coupon Conve r tible Note

7. 15

Junk Bonds

7. 16

M ezzanine D ebt

7. 17

Floating R ate B onds

7. 18

Other Hybrid D ebt Instruments

7. 19

Money Market

7. 20

Func tions of Money Marke t

212

213 213 213 214

215 215

216

7. 21

Treasur y Bills

7. 22

Central Govt. S ecurities (Gilt-edged S ecurities)

7. 23

Commercial Paper (CP)

7. 24

Features of Commercial Paper

7. 25

Ad vantages and Disadvantages of Commercial Paper

7. 26

Ce r tificate of D eposits (CDs)

7. 27

R ate of Inte rest on CDs

7. 28

Call Money

216

217 218

219

220

220 220

7. 29

Repurchase Ag reements

7. 30

Interbank Pa r ticipation Ce r tificate (IBPC)

221

218

AND

OPTION PRICING

245

Meaning of Derivatives

8. 2

Charac teristics of Derivatives

8. 3

Spot Con t rac t

245

245 245

8. 4

Fo r wa rd Co nt rac t

8. 5

Features of Fo r wa rd Cont rac t

8. 6

Futures Co nt rac t

8. 7

Types of Futures Contrac t

246

246 246 246

8. 8

Impor tant Features of Futures Contrac t

8. 9

For wa rd Co nt rac t vs. Future Cont rac t

8. 10

B enefits of

8. 11

Pa r ticipants in Futures Market

8. 12

Mechanism in Futures Contrac t s

8. 13

Determination of Futures Price

8. 14

B asis, Contango and B ackwa rdation

8. 15

Simple Pay off Positions in Futures

8. 16

Closing Out of Futures Contrac t

8. 17

D efinition and Meaning of Option Cont rac t s

8. 18

Kinds of Options

8. 19

Features of Options

8. 20

Differences bet ween Futures and Options

8. 21

Prerequisites for Options Markets

247

Futures Contrac ting

8. 22

Call Option

251

8. 23

Put Option

252

247

247 248 248 248 249

250 250

250 250 251

251

8. 24

Fac tors Affec ting the Pricing of Options

8. 25

Ad vantages of Options

252

253 253

8. 26

Disadvantages of Options

8. 27

Calculation of P remium on Options

8. 28

Intrinsic Value of an Option

8. 29

Time Value of Option

253

253

254 254

8. 30

Marking to Market

8. 31

Black and Scholes Option Pricing Model

8. 32

Valuing Put Options with the Black-Scholes Model

8. 33

Assumptions of Black and Scholes Model

8. 34

Valuing Embedded Options

8. 35

Valuing the Callable B ond

257 257

254

256

255

C-14

Contents

257

8. 36

Stock Index Futures

8. 37

Features of Stock Index Futures

8. 38

Over-the Counter Market for Derivatives

8. 39

Pricing of Stock Index Futures Cont rac t

8. 40

Reasons for Popularit y of Stock Index Futures

8. 41

Distinc tion bet ween OTC and Exchange Traded D erivative s

8. 42

Commodit y Futures

8. 43

Swa p s

8. 44

Categories of Swaps

258 258 259 259 260

260

261 261

261

Theoretical Examination Questions

Practical Examination Problems

262

10. 7

Matrix Investment Strategy

10. 8

O ther Investment Strategies

289 289

290

10. 9

Types of Companies

10. 10

Categorization of Stocks

10. 11

Good Investment Attribute s

10. 12

Return of Single Asset

10. 13

Annual Rate of Return of Single Asset

10. 14

Average Rate of Return of Single Asset

10. 15

R isk of Single Asset

10. 16

Return of Po r tfolio of Two Assets

10. 17

R isk of Po r tfolio of Two Assets

10. 18

Optimal Po r tfolio of Two Assets

10. 19

R isk and Return of Po r tfolio of Three Assets

10. 20

Po r tfolio Diversification and Minimization of R isk

10. 21

R isk and Required Return

291 291

291

SECURITY ANALYSIS

9. 1

Bull Market and Bear Market

9. 2

Market Capitalization

275

296 297

Meaning and Need for S ecurities Analysis

9. 4

Fundamental Analysis

9. 5

Kinds of Fundamental Analysis

9. 6

Technical Analysis

275

Chapter 11

276

PORTFOLIO THEORY

279 280

Assumptions of Technical Analysis

9. 8

Technical Analysis and Fundamental Analysis : Distinc tion

9. 9

Dow theor y

280

280

9. 11

Char tism

280

281

9. 12

Fisher Black’s Noise Theor y

9. 13

R andom Walk Hypothesis

281 282

9. 14

Efficient Market Hypothesis (EMH)

9. 15

Forms of Stock Market Efficienc y

282 283

9. 16

Charac teristics of Efficient Marke t

9. 17

Assumptions of EMH

283

283

9. 18

Impor tance of Stock Market Index

9. 19

Stock Market Indices

283

284 284

9. 20

Scrip S elec tion Criteria in BSE S ensex

9. 21

Calculation of Closing Price of BSE S ense x

Theoretical Examination Questions

301

AND

CAPITAL ASSET PRICING MODEL

9. 7

B asic tenets of the D ow Theor y (DT )

285

285

325

11. 1

Classification of R isks

11. 2

Total Risk

11. 3

Systematic R i s k

11. 4

Unsystematic R isk

11. 5

Capital Asset Pricing Model

11. 6

Assumptions of C APM

11. 7

S ecurit y Market Line (SML)

325

11. 8

Charac teristic Line

11. 9

Alpha Coefficient

326 326 327

327 328

329 330 330

11. 10

B eta Coefficient

11. 11

B eta Coefficient of a Mutual Fund

11. 12

B eta Fac tor of a Market Po r tfolio

11. 13

R isk-Return Trade-off

11. 14

B enefits and Limitations of C APM

11. 15

Arbitrage pricing Model (APM)

11. 16

Markowitz Mean-Variance Model

11. 17

Assumptions of Markowitz Model

PORTFOLIO MANAGEMENT

AND

11. 18

Efficient Frontier in Markowitz Model

11. 19

Capital Market Line (CML)

11. 20

S eparation Theorem

11. 21

Market Po r tfolio

RISK RETURN ANALYSIS

286

10. 1

Por tfolio Management

10. 2

Asset Allocation

10. 3

Constant Propor tion Strategy

10. 4

Constant Mix Strategy

10. 5

Rupee Cost Ave raging Strategy

10. 6

Value Cost Ave raging St rategy

287

332

334 334 335 336 336

338

339

340

Theoretical Examination Questions

287

331

333

........................................................................................................

Chapter 10

300

........................................................................................................

276

9. 10

300

302

Practical Examination Problems

9. 3

299

302

Theoretical Examination Questions

275

292

293

........................................................................................................

Chapter 9

292

Practical Examination Problems

340

340

........................................................................................................

287 288 288

Examination Series

Chapter 12 FINANCIAL SERVICES

12. 1

IN

INDIA

Non-recourse Financing

12. 3

O ff-B alance Sheet Financing

Special Purpose Vehicle (SPV )

12. 5

Ta keout Financing

352

12. 6

Reverse Mor tgage

352

Bridge Loans

353

12. 9

Credit R ating

353

12. 10

Types of Credit Rating

13. 10

Drawbacks of Mutual Fund Investments

13. 11

Standard D eviation of Return of Fund

374 374 375

375

13. 12

Sharpe R atio

13. 13

Sor tino Ratio

376

13. 14

Treynor R atio

377

351

377

Theoretical Examination Questions

378

Practical Examination Problems

352

12. 8

B enefits of Mutual Fund Investment s

351

12. 4

Consor tium Lending

Criteria in S elec tion of Mutual Fund

13. 9

350

12. 2

........................................................................................................

Chapter 14 353

FOREIGN INVESTMENT

12. 11

R ating of Financial S e r vic es Companies

12. 12

B enefits of Credit R ating

354

354

12. 13

Limitations of Credit R ating

12. 14

Merchant B anking

12. 15

Role of Merchant B ankers in Public Issues

12. 16

Loan Syndication

12. 17

Venture Capital

12. 18

Ac tivities Eligible for Venture Capital Suppor t

12. 19

Stages in Venture Capital Financing

12. 20

Forms of Financial Assistance from VC Funds

12. 21

Ad vantages of VC Finance

12. 22

Private Equit y (PE)

12. 23

Criteria for Evaluation of Investment Proposal for PE

12. 24

Why PE Investment not popular?

355 355

356 356 357

357 357

357

358 358

359 359

12. 25

Meaning and Definition of Depositories

12. 26

Deposito r y Pa r ticipant (DP)

12. 27

Scripless Trading System

12. 28

Benefits from Depositor y System

12. 29

Physical and D ematerialized Share Trading

12. 30

B ank Acc ount and D eposito r y Acc ount

AND

INTERNATIONAL FINANCIAL MANAGEMENT

354

359 360 360 361

362

392

14. 1

Issue of ADRs and GDRs

14. 2

Similarities of ADRs and GDRs

14. 3

B enefits of ADR/GDR Issue

14. 4

Fu n g i b i l i t y

14. 5

Foreign Currenc y Conver tible Bonds (FCCBs)

14. 6

Comparative Analysis of FCCB and GDR

14. 7

Ad vantages of FCCBs

392

393

394 394

395

395 396

14. 8

Disadvantages of FCCBs

14. 9

Fo reign Currenc y Exchangeable B onds (FCEBs)

14. 10

Ex ternal Commercial B orrowings (ECBs)

14. 11

Fo reign Direc t Investment (FDI)

396

396

397

397

14. 12

Eu ro Currenc y Market

14. 13

Types of Eu ro Cu r renc y Loans

14. 14

Fo reign D omestic Capital Markets

14. 15

Syndicated Credits

14. 16

Eu ro b o n d

14. 17

Multiple Currenc y B onds

397 398

398

398 398

399

14. 18

Alpine Conve r tibles

14. 19

Distinc tion bet ween Alpines and Eu ro-Co nve r tibles

12. 31

Credit Ca rd s

362

14. 20

Fo reign B onds

12. 32

Refinancing

363

14. 21

Eu rope Medium Term Notes (EMTNs)

12. 33

SIDBI

14. 22

Fo reign Institutional Investors (FIIs)

12. 34

NBFCs

14. 23

Fo r faiting

14. 24

B enefits of International Fo r faiting

14. 25

International Fac toring vs. International Fo r faiting

14. 26

Fo reign Technical Collaborations

363 364

Theoretical Examination Questions

364

Chapter 13

400 400

401

Theoretical Examination Questions

MUTUAL FUNDS Practical Examination Problems

365

13. 1

Meaning of Mutual Funds

13. 2

How to S etup a Mutual Fund ?

13. 3

Par ties to Mutual Fund

13. 4

Kinds of Mutual Fund Schemes

13. 5

Net Asset Value

402

13. 6

E nt r y Load and Exit Load

Return on Investment

370 372

402

402

403

403

........................................................................................................

365

366

369

399

399

........................................................................................................

13. 7

C-15

373

13. 8

350

Financial Intermediation

12. 7

Strategic Financial Management

367

Chapter 15 FOREIGN EXCHANGE RISK MANAGEMENT

407

15. 1

Fo reign Exchange Marke t

15. 2

Func tions of Fo reign Exchange Marke t

15. 3

Fixed and Floating Exchange R ate s

407

407

C-16

Contents

15. 4

Ad vantages of Fixed Exchange R ate System

15. 5

De terminants of Fo reign Exchange R ate s

15. 6

Direc t and Indirec t Quote s

15. 7

Cross Currenc y R ate s

VALUATION OF SHARES

408

409 409

15. 8

Bid Price and O ffer Price

15. 9

Spot Rate and Fo r wa rd R ate

409

15. 10

Impac t of Inte rest R ates and

15. 11

Law of One Price

15. 12

Interest R ate Parit y Theorem

15. 13

Pu rchasing Power Parit y Theorem

15. 14

Fisher Effec t

15. 15

International Fisher Effec t

15. 16

Integration of IRP and PPP Theorems

15. 17

LIBOR

15. 18

Capital Account Conve r tibilit y

15. 19

Fo reign Exchange R isk Exposure

15. 20

Currenc y Exposure to R isk

15. 21

Fo reign Exchange R isk Management (FERM)

15. 22

Benefits of FERM

410

Inflation R ates on Exchange R ate s

411 411 413

AND

BUSINESS

16. 1

Methods of Valuation of Shares and Business

476

16. 2

Net Assets Method or Intrinsic Value Method

476

16. 3

Dividend Yield Method

477

16. 4

Earnings Yield Method

480

16. 5

Return on Capital Employed Method

16. 6

Price/Earning R atio Method

16. 7

Fair Value Method

483

484

485

487

Practical Examination Problems

........................................................................................................

414

Chapter 17

415 416

MERGERS

417 417 417

418 418

419 419

15. 23

Hedging of Fo reign Exchange R ate R isk

15. 24

Simple Hedging Techniques

15. 25

Leads and Lags

15. 26

Netting

15. 27

Arbitrage Operations

15. 28

Cross Currenc y Roll-ove r

15. 29

Fo r wa rd Exchange Cont rac t

15. 30

Closing Out of Fo r wa rd Exchange Cont rac t s

15. 31

Ex tension of Fo r wa rd Exchange Cont rac t s

15. 32

Cost or Gain of Fo r wa rd Cove r

15. 33

B enefits & Drawbacks of Fo r wa rd Exchange Cont rac t

15. 34

Caps, Floors, Collars and Fixed Rate Derivatives

15. 35

Currenc y Futures

428

15. 36

Currenc y Options

428

15. 37

Benefits to Buyer of Currenc y Option

15. 38

Drawbacks of Cu r renc y Option

15. 39

Fo r ward Rate Ag reement

15. 40

Interest R ate Caps

15. 41

Interest Rate Floors

15. 42

Interest Rate Collars

15. 43

Currenc y Swaps

15. 44

Types of Currenc y Swaps

15. 45

B enefits of Cu r renc y Swaps

15. 46

Stages in Cu r renc y Swap

15. 47

Inte rest R ate Swaps

15. 48

S elec tion of Hedging Method

15. 49

Chapter 16

408 408

419

421

422 423 424 424 425 426

ACQUISITIONS

17. 1

Meaning of Merger and Acquisition

17. 2

Kinds of M&A

17. 3

Synergy in M&A

501

17. 4

Strategic Motives of M&A

501

17. 5

Financial Motives of M&A

502

17. 6

Organizational Motives of M&A

17. 7

Motives for Cross B o rder M&A

427

503 503 504

17. 8

Tax Planning through Merger

17. 9

Taxation Aspec ts of Ta ke over

17. 10

Meaning of Ta ke ove r

17. 11

Kinds of Ta ke ove r

17. 12

Defensive Measures in Hostile Ta ke over Bids

17. 13

Major Causes of M&A Failures

504

506

506

Practical Examination Problems

427

500

500

Theoretical Examination Questions

426

507

507

508

509

........................................................................................................

Chapter 18 CORPORATE RESTRUCTURING

429

429

430

431 432 433

434 436 436 436

436 438

Nostro, Vostro and Loro Accounts

Theoretical Examination Questions

Practical Examination Problems

AND

438

439

439

........................................................................................................

535

18. 1

Meaning of Corporate Restruc turing

18. 2

B road Areas of Corporate Restruc turing

18. 3

Group Reorganization

18. 4

B asic Reasons for Corporate Restruc turing

18. 5

Implications of Corporate Restruc turing

18. 6

Business Process Re-engineering (BPR)

535

Financial Restruc turing

18. 8

Symptoms of Poor Capital Struc ture

Financial Reconstruc tion

18. 10

Hardware Restruc turing

18. 11

Soft wa re Restruc turing

18. 12

Techniques of Corporate Restruc turing

Joint Ven ture s

D i ve s t i t u re s

18. 15

Slump S ale

539 539 539

536 536

537

538

18. 9

18. 14

535

537

18. 7

18. 13

535

538 538 539

Examination Series

18. 16

Strategic Alliances

18. 17

Equit y Ca r veout

540 540

540

18. 18

Franchising

18. 19

Intellec tual Proper t y R ights

18. 20

Holding Companies

18. 21

Sell-off

540

541

541 541

18. 22

Going Pr i vate

18. 23

L i q u i d at i o n

18. 24

Ta ke over by Reverse Bid

18. 25

Reverse Merger

18. 26

D e m e rg e r

541

Strategic Financial Management

Le ve raged Buy-out (LBO)

18. 30

Working Capital Management in Sick Industries

18. 31

Causes of Industrial Sickness

18. 32

Reasons for Business Failure

18. 33

D e tec tion of Incipient Sickness

18. 34

Turnaround Management

18. 35

Multiple Discriminant Analysis

Practical Examination Problems

542

Management Buy-In (MBI)

18. 28

Management Buy-out (MBO)

544

544 547 547

548 548

549

549

........................................................................................................

542

18. 27

543

18. 29

Theoretical Examination Questions

542

C-17

Mathematical Tables

543 543

CA Final Syllabus

556

552