15
USN IZNIBA2I Second Semester MBA Degree Examination, June / July 2014 Business Government & Society ,;;.,,Time: 3 hrs. Max. Marks:f 0$,,,,,,,' ' ,' , '-':,, Note: l. Answer any THREE full questions from Q.No.l to Q.No.6. ,,, ir*. ''' .",.,., 2. Question No. 7 & I are compulsory. oi o C) (n L o a o o E9 !g- -.o bol d-- .= c.l t! bn tso .)tr -co o> EE a= bU (no o! boc dd 6{ !(E 5ts 5v d-9 tra o.v o ..: iD= to @LE -i !o l= >' +r boo dbo o= !+9 =o 5: ?< -'{'.1 {f o z (! o Z. Auestrun l\o. / 6r. d are compulsofy. ,,1 'ov"trvt t *vw'9vv"tl'e@v'Jt U- ,'.J ..,,.!Y.h-at is corporate govemance? -. - 't" ' (03 Marks) Writg;a note on market capitalism model. (07 Marks) Whati#tusiness ethics? Discuss some unethical isues at workplac.r,,.l. = (10 Marks) What is iori{.141e social responsibility? ,-*hu-J (03 Marks) Explain the h{Storical forces that changing the business envifnf.nent. (07 Marks) rxplain in oetiii th;..1,1suments for CSn corporate social r-*,,if aiUility. (10 Marks) What do you u"Oersi&ffu htellectual property? ";: (03 Marks) Explain the benefits of good corporate govemance to a corporation and society. (07 Marks) What do you mean by 'ltH& term 'Negotiable " instrument'? What are its essential characteristics and its types? , ,.. (10 Marks) What do you understand by "Laissez Sai4p'? (03 Marks) Cation of public poli What is public policy? Explain the{Ifrffitfication of public policy. (07 Marks) res to control industrial pallection. (10 Marks) (03 Marks) Explain the role of sta@holders in the context of entirgp4qental preservation. (07 Marks) Write a note on: i).Waste management and ii) Busines&ipUwgr. (10 Marks) ..-. ,a:,. i State the dif&rerdi: between agreement and contract. Differenti'at€ b€tween pledge and b ailment. Define -centiact? And explain the essentials ::' '':i ':' ""1'''"',,:::::,,.""'::: ''' *.*'*,/1 -,,. (03 Marks) (07 Marks) (10 Marks) ? And explain the essentials ofvalid contract. A Mnfohn has been appointed as an assistant to the manager of a dairy farm" 3gd on the very first day of his work, he is asked by the manager to mix water in milk "tuid"g.gll it to the .,iustomers. Jhon is an innocent boy. He is shocked by this order because tui @Ues from a religious family and he does not want to indulge in unethical work. Which situation Mr. John has fall into? (05 Marks) A customer who is fully dronic has came to the bank to withdraw amount from his acboggrg , He presents the cheque on the counter. Can the banker pay the cheque? (05 Mark$ : B offered to sell his house to A for Rs.50000. A accepted the after by port on the next day A sent a telegram revoking the acceptance which reached B before the letter. Is the revocation of acceptance valid? Would it make any different if both the letter of acceptance and the telegram of revocation of acceptance reach B at the same time? (05 Marks) A minor fraudelently represented to a money-lender that he was of fullage, and obtained a load of Rs.500. How the money lender any right of action against the minor for the money lent, or for damages for fraudolent misrepresentation? I of2 (05 Marks)

2nd Semester MBA (June-2014) Question Papers

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Page 1: 2nd Semester MBA (June-2014) Question Papers

USN IZNIBA2I

Second Semester MBA Degree Examination, June / July 2014Business Government & Society

,;;.,,Time: 3 hrs. Max. Marks:f 0$,,,,,,,'

' ,' , '-':,, Note: l. Answer any THREE full questions from Q.No.l to Q.No.6. ,,, ir*. '''

.",.,., 2. Question No. 7 & I are compulsory.oioC)(nLo

a

oo

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.= c.l

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-i!ol=>' +rboodboo=!+9=o5:?<-'{'.1{foz(!

o

Z. Auestrun l\o. / 6r. d are compulsofy.,,1

'ov"trvt t *vw'9vv"tl'e@v'Jt

U- ,'.J..,,.!Y.h-at is corporate govemance?

-. - 't" ' (03 Marks)

Writg;a note on market capitalism model. (07 Marks)Whati#tusiness ethics? Discuss some unethical isues at workplac.r,,.l. =

(10 Marks)

What is iori{.141e social responsibility? ,-*hu-J (03 Marks)Explain the h{Storical forces that changing the business envifnf.nent. (07 Marks)rxplain in oetiii th;..1,1suments for CSn corporate social r-*,,if aiUility. (10 Marks)

What do you u"Oersi&ffu htellectual property? ";: (03 Marks)Explain the benefits of good corporate govemance to a corporation and society. (07 Marks)What do you mean by 'ltH& term 'Negotiable

" instrument'? What are its essential

characteristics and its types? , ,.. (10 Marks)

What do you understand by "Laissez Sai4p'? (03 Marks)Cation of public poliWhat is public policy? Explain the{Ifrffitfication of public policy. (07 Marks)

res to control industrial pallection.(10 Marks)

(03 Marks)Explain the role of sta@holders in the context of entirgp4qental preservation. (07 Marks)Write a note on: i).Waste management and ii) Busines&ipUwgr. (10 Marks)

..-. ,a:,. i

State the dif&rerdi: between agreement and contract.Differenti'at€ b€tween pledge and b ailment.Define -centiact? And explain the essentials

::' '':i ':'

""1'''"',,:::::,,.""':::

''' *.*'*,/1 -,,.

(03 Marks)(07 Marks)(10 Marks)? And explain the essentials ofvalid contract.

A Mnfohn has been appointed as an assistant to the manager of a dairy farm" 3gd on the veryfirst day of his work, he is asked by the manager to mix water in milk "tuid"g.gll it to the

.,iustomers. Jhon is an innocent boy. He is shocked by this order because tui @Ues from areligious family and he does not want to indulge in unethical work. Which situation Mr.John has fall into? (05 Marks)A customer who is fully dronic has came to the bank to withdraw amount from his acboggrg ,He presents the cheque on the counter. Can the banker pay the cheque? (05 Mark$

:

B offered to sell his house to A for Rs.50000. A accepted the after by port on the next day Asent a telegram revoking the acceptance which reached B before the letter. Is the revocationof acceptance valid? Would it make any different if both the letter of acceptance and thetelegram of revocation of acceptance reach B at the same time? (05 Marks)A minor fraudelently represented to a money-lender that he was of fullage, and obtained a

load of Rs.500. How the money lender any right of action against the minor for the moneylent, or for damages for fraudolent misrepresentation?

I of2

(05 Marks)

Page 2: 2nd Semester MBA (June-2014) Question Papers

IzNtB.A2I

Misuse of technology makes it possible to steal someone's credit or debit card. Thesubsequent passage will highlight the same.

You should watch your back while in queue at the supermarket I'll hold my phone likeI'm looking at the screen and photograph your card as you're using it. Nest thing you trn-ffi-I'm ordering things online --on your money. Those letters and newspapers piling up at jourdoor indicate you are away. And these could be card numbers and bank numbers Lcanvse.

' . In this contexi, one important tip is : check your bank and credit card numbe;s; balances at

=- ;least

once a week because a lot of damage can be incurred in the 3G-ldayi between- ii."

'le4st once a week beiause a lot of damage can be incurred in the 3q--1ffi[yi between

MtFurents. ln Europe, credit card have an embedded chip and require a P,,!,tr'{,uiffhich makes it;t ;. a - ^_ t*,ir'=: -.

c ?r !."

re"b sigh of relief start toIf aT s not show OP when it is supposed to do not bre€the a sigh of relief start towonder if S$;gnail has been stole. You throw away the darn€UCI.#=things - pre - approvedcredit and [ons, old bills, expired credit/cards, bank depbsits slips, and crumpled -upjob orloan ions will all yourpersonal informaffi

the card slot andr bank to stop bunks from sending youeasy for me. I use your credit cards all

You will give me a lot of trouble if your

My things will be easy if you it card that does not reserve a PIN when you

buy something from a stop. You ,kffod, lts decure only at the ATM. I can call the cell phoneservice provider, pore as you,.qnl$,Sy, ooHsg I thought I paid this bill. I cannot remember -did I are my visa or master card? Can you read me back that number? It's unbeliable how

'::: ''::":': ,,1:

a -f*s. *""

,.,di'\'q"

'i ':, ':::""" :

much they will tell me. r. tI should give you S&% for using your debit''&,1O$ead of your credit card. Huckers

are constantly breakirrg.,,hnto retail databases, and debit diirds give me direct access your bankaccount. (why, i{ff$rused only a credit card you could conkxt the change and refuse to payup) I love that{ftTv credit card that eh courier boy left at your door. I write down thenurnbers ar@4pt it back. Then your card is as good as mine.

**l,\. q;r:{r1.

*ffifions: ''= *{*_

b. A$il any difference between the procedures of credit card and debit carA,$€ft2 (05 Marks)c4',f:What precautions should one take to prevent such thefts? ' ll?',(05 Marks)

{fi,p"=='What is credit card and debit card? (05 Marks)t" ,i

* t * * * t

"""::,,'1s,,,,,,,,

t;i;,'

2 ofZ

Page 3: 2nd Semester MBA (June-2014) Question Papers

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Page 4: 2nd Semester MBA (June-2014) Question Papers

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Page 5: 2nd Semester MBA (June-2014) Question Papers

IZNIBA24USN

Second Semester MBA Degree Examination, June / July 2014Marketing Management

dC)

oq

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()=-(i!+ 9)

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():=

"'t.,,,,.'t'"

1loa.

"t::'&t'Max. Marks: !,{0:::,

,:"'::,

tl ': .-,,

7 to Q.No.,6.., .,"

la.b.c.

2a.b.c.

3a.b.c.

4a.b.c.

Note: l. Answer any TIIREEfUII questionsfrom Q.No.2. Question No. 7 and I are compulsory.

(03 Marks)(07 Marks)(10 Marks)

(03 Marks)(07 Marks)(10 Marks)

(03 Marks)(07 Marks)(10 Marks)

Differentiate between (03 Marks)(07 Marks)(10 Marks)

(03 Marks)(07 Marks)

Explain the differeWrite short

.,,,,,"''_,....,,, (10 Marks),,al

::,...,;.

:::, ,l: :.

'a. Cellular Company Airtel went in for an extensive promotion of its services thrbdhrbttghout thecountry. Hutch now Vodafone its major competitor wants to counter Airtel's move ttnoughoutdoor campaign using hoardings or bill boards. How can it use its outdoor campaign toreach customers and set their mind share? What are the various benefits that hoardings orbill boards offer?

--_ ---_O- =-::: .::

(10 Marks) .

b. Anchor P\rt. Ltd has launched a portal to facilitate B2B purchase and sale of electricalcomponents by providing ready access for dealers and suppliers situated across the country.This was done to reduce the difficulties that arise due to the complexity of products andbuying situations in traditional industrial selling. How could the company ensure that itsportal is effective and serves the above purpose?

I of2

(10 Marks)

Page 6: 2nd Semester MBA (June-2014) Question Papers

IZNIBA24

2 of2

Page 7: 2nd Semester MBA (June-2014) Question Papers

2n-b.

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l2MR,t22

Sccond $erncstcr.M.IiA Dcgrec Examination, June / July 2014

Quantitative ltlethods - llTime:3 hrs. Mar, Markstl00

Notc: l. Answer cny THREfi questions jf?om BlYo. I to Q,No. 6.2. Q.ue.ttlon Nn. 7 und I arc tantpul*nry.

I a. Whrtt rrre tJ:e limitttiuns of a linear progranrrring problern (LPP)? (03 Mrrlcs)b. Vt'itlr a flow ch;ut, state the stcps involvcd in the salution ollan Opcnrtiaus Research (OR)

prnbler:r. (07 tlfrrks)c. b,xplain various rrrodet.r of Operatirrtt Rcsearch. with suitatrlc cxarnplcs, (10 Markr)

Explain two perso[ zero "sum gatne with an exarnple.lViite the dual of ttre tbllowirrg LPP.Minirnize Z -- ?xrl 5x: - 9xrSubject to 3xr . 7x2 t x3 > 8

9xr -4x: < l0xt txz*Zxj = 15

4x? l (txli 16

xrI 0, x2 -ullcofl$tmiucd, x3 e 0,A nrachine operator has to perlirrtn three t-rperation$ : tnrning threaditg ttrrlnunrbs of dilhrqnt jobs, 'l'he time required to perfonn these operations (in

{03 illrrhs)

(0T llIarkr)knurling rtn anrinutcs) {br

3 ir.

ls.

each job i.s given below:.Iob TL B C I) iE FTirne tbr'furnins ) 12 5 2 19 11'[ime fb,i Threadins 8 6 4 d i3 1

Time fbr Knuriing t3 r4 9 t2i8 13

Determine the order in which the job.e should bc pt'oc*sccl in orricr to r:urnpletc all julrs inminimum tinre. Also find the idle timp fur all rrpetatious. (I0 frtorkt)

{0:}'R!*rk*)VIhat is llirnuls*ion? Explnin with aur exaffiFh.'Ihr- following table gives the costiper.lmur in'Rs fur pcifoming diIfcrcnt'tasks by 4ruten,AssitFr'th+rn trr diffetent tasks tu mitiinrize total cost, (07 $Inrke)

c, LIse gra.phical rncthod tt-r optimai stmtegies ptayers and vatrie of the g;rrne

fhr two pers(rl ucro sum game. whose payoiTnratrix is givcu as lirllows : '(l0 ilIrrkr)

Hr tsr

l21

4 a. What are objective flltrction, decisicrt varie.blcs and ccrnstr"rinls wiih n:'lLrcnc* tu l.PP'?(05 ll{nrl(s)

I of 3

E+r():)

ArAr

'IiIk----Men E F GTi

HIiA t8 Zlt

B 13 Z8 14 f-(l

C. 3819

t9 l, ll l5D ?6 74 l0

obtain tlre onti fb otll

Page 8: 2nd Semester MBA (June-2014) Question Papers

l?MB,{22

b. List orit tire diftbrences hetw*r.'n PF)ltL'anri CPM. {$s Markx}c. r\ s*lf scrvicc storc employ$ one cashierat it.s cnrner Nine custorners arrivc on an avc,rfi.ge

tvery 5 minules while cas!:ier oarl serve I{) custor:rers in 5 minut+s. Assum.ing Poissondistribution of rrrrivtl ratu and exponential distribution of servicr tirne, fir:rtli) The average queuc length.ii) ,Average nurnbcr of cuslonrers a[ the store.iii) Aver:rge waiting time of s euston:cr ir qucuc.

v) Thr: probttrility [h*1. a qusl:grner will spend more thau t0 miuutes at the storc. (10 Mnrks]

a. fllustrate Merge anrl Rur..*t events, {0F Marks}b, 'I'hc rnitheting staffof an Ltdustrial orgrrnization hns sr-rhmitted tirc folLrwing payotTtnble

(giving protits itr t'nilliot of rupccs) corrc+nring ccflain propqsi{ depeudiug r.rpon the taie oftechrto lo gir:tr I advauc:e.

Technologicnl Advnnce DecisionAccspt R.eicct

Much 2 J

[:!tt19None

5-l

L

4-The probabilities are 0.2, 0,5 irfld 0.3 for much, littlc e.ncl flore tecturologicsi advance- Whnt

t05 M.rr&s)ciecision should he tskerr?Solve the bliowing I-PP gruphic*lly ;

MinimizeZ=20x | 4()ySuhicet io x + 3y;] 40

x+2y<35x+y>20x

' Y) 0'

Descrjbc thc gcncral structure of the queuing system.

Duration 3t4Dra.w nroiI)ra.w projcct nctworkFinrl the criticril puth and total project duration.sind,the ear{iest eurd latest start rinre.and earliest and late.rt finish tinru.Find total float, f'ree float and indcpurclcut float.

Tw-o firms are competing tbt marl(ct sharc of fi prrtieulflrproduct; Each fin'n is co,n.qiderinsclifferent,prumotioual stntegies to employ lbl the coming period. How .should theyrdecide?,-

You have. inhsritecl Rs 50 lakhs tionr your grand .father,. You have fevern{ ,lrT#iltiioptions; The return'or invcsfincnt dcpcnds on wtlcthcr'thc iconomy cxpstien(.es inflation,recession or uo ohange at all. [Iow should you decide? (0s Msrks)Whiclr.O.R techniquc should be r.rsedto enfi:rce the,:tirncly:complction r:f ML,'l'ltO ttail

ii.b.

Hrirv to allocaie dif"fcrent salcsmcn to rJiffcrcnt tcrtr'toncstenitories is Iarswn fiom past records,

(I0 Marks)

{05:Mlrhg

(I5 Marlrr)

, :r {tl5 Msrk$}if t.hcir avcrngu sales in differcut

(05 Mflrh$)

i)ii)iii)irr)

b.

d.

The managem;nt sf a compony is consiclering thc marketing o.[a ni:w prrrduct *'ith a tixedcontof Rs 25'R0tl' The seilingprincc (Rs), vnriablc cost (Ri; ariltlre urrrrral,*ales.rolunu(uniB) ars unccfi.dn with follorving i{istribntion ; ,

2 rt'3

Page 9: 2nd Semester MBA (June-2014) Question Papers

flriir

l2MB,t22

r$h*tiiiry

tLiing doterrnine the avcragc prolitrfor tl triali uring thc

u- -tt+ - er "ld*5iI Eil r: JrI Price: I tt 04 6? Io--51,-19 lz 3rl. I Cost: I 32 46 25 40 68 66 64 lltr I

LYplum@go 7e 6qll i'u

i,' , ,

L.,. .

b.:: -. ,r_.'L-i.':'--t.::,:. -,:J :. :.

A oompaty.ha.l lhrcc:retineries?;Q and R with productiorr uf 130, 150 nnd 170 mctfic rons'r.cspcctively.,It.ha-t.tbur depot A,:Bi C flnd D with requirement'of g0;1f)0,',140 andrlzt)tflckic,tonsr:tcs,pc$tive.ly,, 'l he transportation cost per metric ton in hundreds of rupees is asfollows: Denof

Fip{,,tho optirnel distri}u.tion:for niinimum tota! transJrqrtarion go$t Is thc solution unique?Ifnot find all optimal solutions. (I0 Mert$

*****

Variable)

0,300.50

I(eIinery lA B. C D

3 of3

Page 10: 2nd Semester MBA (June-2014) Question Papers

USN I2MBA25

Second Semester MBA Degree Examination, June/July 2014

Financial Management

.,.Time: 3 hrs. Max. Marks:1Q ,.,,,,

',il'.\...,,, Note: l. Answer any TIIREEfiuII questionsfrom Q.No.l to Q.No.6. q\

o'l*=,,,, 2. Q.No.7 and Q.No.8 are cimpulsory. ::::. -....:.

;p^' 3. Use of P.V. tobles is permitted. -:.::...:.. :

I a. 'W,,hat.do you mean by capital rationing?

()ao!o.(!

()(o0)L

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.v?Ei=r)-oo ll

troo.E i.rcn+!.,t bots0)o)CdoEe

Es8Evdod)dO

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a. 'W,,hat.do you mean by capital rationing? ,j:.,=n.

.,t (03 Marks)b. Briefu"e;plain the approaches to financial mix of current assets. , li (07 Marks)c. A c.ot.@r1 has on its books the following amounts and specific costs of each tlpe ofof each tlpe of

Determine the weighted averHgpqrst of capital.us{ng:

2a.

b.

c.

i) Book value weights and ii)*,lart .ttdte weights (10 Marks)\:. j:::: :l:,

rj,l

An investor deposits Rs.100 i, u.Ekfocount for 5 years at 8%o interest. Find out theamount which he will have in his4pffif.interest is compounded quarterly. (03 Marks)What do you mean by hybrid fi,pancing? Expbin the features of preference shares as aninstrument of hybrid financing _{ (07 Marks)While preparing a projeclffirt on behalf of a cliddt you have collected the following facts.Estimate the net worf<ffiaiital required for that ploj-m*AOd l}%to your computed figureto allow continsencies:, 4: ' 'low conti

,.""'-:]J Particulars 4..1 -Amt. oer unitEstinrBtffiost per unit of production:Raw* materialDiiect labourOverheads (excludine depreciation of Rs.10 per unit)

l,lrrltili'r,

Rs:'86.,]Q..='..:

60 ''

a'

Total cash cost t70 :;;'

iona information:

- '',#'t'

..stauu[ ru rlill lllluI ttlatlull.Selling price : Rs.20O per unit

i,,,,',,j Level of activity: 104000 units of production p.a. *,,. ';o- ----- --J -- r^------- ,,. *n"*,Raw materials in stock, average 4 weeks u ' 1,,..

Work in progress (assume 50% completion stage in respect of conversion costs an4"10.0%,u"- xS' r!completion in respect of materials) average 2 weeks.

Finished goods in stock, average 4 weeks.Credit allowed by suppliers - average 4 weeks.Credit allowed to debtors, average 8 weeks.Lag in payment of wages, average 1.5 weeks.Cash at bank is expected to be Rs.25,000.

You may assume that production is carried on evenly throughout the year (52 weeks) andwages and overheads accrue similarly. All sales are on credit basis only. (10 Marks)

Debt = '::::'

.::.:...1

Preference lt;',

EquityRetained earnings

4,00,0001,00,000

ry"b 6,00,000q*1e*00.000

,J

t=. 8

15

13

1 of3

Page 11: 2nd Semester MBA (June-2014) Question Papers

12MBA25-':

(03 Marks)(07 Marks)

maximization fails to

lJased on rts dlscusslons wilh ltthe cost of its sources of finance sr of

Ioers bnlvaas follows:

Source of Finance (Rs. in million) riEe of New Financins Cost (%)

Equity *1%l'=

=$ 0-30

Mffi than 30t8%20%

Debt.-wa

More 50t0%tr%

From the above data, pSp&re weighted marginal cobt d4ppital schedule.

DistinguThe follc

inguishfollowi

'& merger and an acquisition with exa&$balance sheet of 'V' Ltd. as on 31103120

,,=ii:: fiafllilisg Amt (Rs.) Assets '*-i" t (Rs.)

Eq4{k}tapital (Rs.10 per share)

JM'DebenturesKbtained earningsCurrent liabilitv

1,80,0002,40,000

60,0001.20.000

Fixed assets

Current assets.,4, ,g,oooT,s$-.3gqo

" *fli

6.00.000 6,00,000

Evaluate the project using: i) PBP,factor.

''* rk

ith ftdrgryhan{pffi.ance fdaVafious Evelbvels

(10 Marks)

(10 Marks)

(03 Marks)

l0o/o and iv) PI at llYo discount(10 Marks)

6a.b.

3 a. What do you mean by CAPM approach?b. What do you mean by leasing? Briefly explain the types of leasing.

c. What are the objectives of financial management? Why is profit/EPSbe consistent with wealth maximization?

",;,# a. What do you mean by a derivative? Give an example. (0'',#." b. A company has 10% perpetual debt of Rs.100000. The tax rate is 35%o. Determine' . .j,,,,,_ of capital (before tax as well as after tax) assuming the debt is issued at: ..,]'

:f "'" :\ ' , ,,,i) par,

ili);*q% premium (07 Marks)

c. Daffi Indian financial system briefly. What are its functions? qM u'." (10 Marks)

5 a. Distingui$ffitween Angel investing and private equity. .u*.-,.'; (03 Marks)

b. You want tlffiiil5a a world tour which costs Rs.10,00,000, tpqldst of which is expected toremain unchafi$ed"in nominal terms. You are willing to. *a&,]&hnnua1ly Rs.80000 to fuIfillyour desire. How-@ will you have to wait if your savings earn a return of l4o/o p.a.?

L":l .vr\ (07 Marks)c. Shiva electronics plans'?s,,tp9 equity and debt in thefiillowing proportions:

Equity:4O rDebt :60 '"6 rr

Based on its discussions with ftS rm-chan€td{rkers and lenders Shiva Electronics estimates

ffiryit

. lCurrentliability | 1,20,000 I I " I

i'.J - The e Rs2 lakhs.Variable operating cost ratio is 4}%.Income tax rate is 50%. Calculate three leveroges:,

(07 Mag@c. A company is considering an investment proposal to install a new machine. The project d#l=_*

cost Rs.50,000 and will have a life of 5 years and no salvage value. Tax rate is 50o/o, th€I{company follows straight-line method of depreciation. The net earnings before depreciationand tax is as follows:

Year: I 2 aJ 4 5

EBDT (Rs.): 10,000 11,000 14,000 [5,000 25,000ii) ARR, ii) NPV at

2 of3

Page 12: 2nd Semester MBA (June-2014) Question Papers

12MBA25

7 a. An executive is about to retire at the age of 60. His employer has offered him two postretirement options: i) Rs.20,00,000 lumpsum, ii) Rs.2,50,000 for 10 years. Assuming 10%interest which is a better option? (05 Marks)

b. You are an investment analyst and are approached by a firm seeking your help in designingits capital structure. What factors would you consider while designing the capital structrry,

;,:,.. for the company? (osludik*)"

,;i!. " As a part of expansion strategy, your company is planning to set up a subsidiary,-in WA.'";d-, What are the sources that you would consider for raising the additional capital? +ffiMarks)

'Pt[*Jou have Rs.10,00,000 of savings and are evaluating two companies to invept in the sharel'ipp1tal. Company 'X' follows a stable dividend policy whereas companydl$?'follows a

tdift,,,,,9,n, dividend payout ratio. Which one do you choose? Why? .. :..,...,. (05 Marks)

,:: ,.: tl't+ -

Naveeii rprises is considering a capital project about which the- fu ing information is"P ,i':: ,

nv4il4fls: ., j.,,: !j lll

rvailable:i) The inV ffint outlay on the project will be Rs.100 pi1,{i6lt This consists of Rs.80

million orii,M and machinery and Rs.20 million on nit working capital. The entireoutlay will beffi+rred at the beginning of the projeot^.,outlay will beffifred at the beginning of the projegf^;,.,

ir) The project ;llfl& financed witn {s.+S -ifliqr"""it equity capital, Rs.5 million ofThe project wilHJip financed with Rs.45 million'of equity capital, Rs.5 million olpreference capital;'=and Rs.50 million of debt qgpitat. Preference capital will carry a

dividend rate of 15%, dS4 capital will carr.y.an interest rate of l5oh.iii) The life of the project is etpected to be 5 yeari. At the end of 5 years, fixed assets will

fetch a net salvage value qt Rs.3d. ihillion whereas net working capital will beliquidated at its book value.

iv) The project is expected to i nues of the firm by Rs.120 million per year. Theincrease in costs on account,ot-tlie fltbjgct is expected to be Rs.80 million per year (this

: :::.! \. }

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includes all items of costotH.pthan depr@ption, interest and tax). The effective tax ratewill be 30%. * -

v) Plant and machinery,"dh b. depreciated at tho rate of 25% per year as per the writtendown value metho(ffince, thehepreciation charges will be:

First year : fis.20.00 miilionf-;'-"'"" .i,. ISecond 6ffi Rs.15.00 million {af"" "_

Third,yffi: Rs.1 1.25 millionFourth year: Rs.8.44 million

:l ,:::" ,.,::ffiAbove information, estimate the projects cash flows. "' Ji;,r" h

(20 Marks)

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Page 13: 2nd Semester MBA (June-2014) Question Papers

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sncnnd semcster .M.na[,*gr.cc Er:rminationr Junc / JuIy z0r4Quantitative Methods - ll

Titue:-] ltrs^ Max. Marks:lo{)

Nrtc; 7. ,4nswer *ny THREE questiotts from p.No, I to e,It{o. 6.Z. e.aestion No. 7 rtntl g arc unltalso{y.

I + 'rLlhitt iue ti're limitatior:s of a linear prtrgramnting rrroblem {Lpp)? (0J Marks}b' Il1*illrf'-

chitrt' state the steps involvcd in tl*re salution'of an opr,nrtions Research (oR)t:. Lxplain l'ariou.s rrrodel,i of oper.atirrn Rcscarch. with suitahlc cxarnplcs,

-- Explain two persor: ze-ro surrr garne with on exanrpl...b. Htrite the dual of tl.re fhllowin[ LRp,}linirnize Z - ?x1r 5x:_ gxrSubjrct to Jxr 7xz + xj F ll

9xr-4x:{10lit '" x: - 2X3 = '54xr I (rxi> 16

xt3 0 , x; _ uncr.)r1$ttiiu.cd , xj i q,c' A urachine operator hss to petli:ttrr three og:eratir)ns : tur*ing threndi,g *..u ur.*l'l#l,.fl]:ruurbcr ul'<lilr{rrsnl jt'bs 'I'he time required to p*rforl, tt-,r.i np*rntions (in rninurcs) iirreach.job i.s grven belou, : r--'vr"' vrr!!'E

I2MBA22

(07 illurks)

{l0l\lrrkr}

{03 t}Inrhu)

ii',b -

lTimefbrt<nurtinffiDetermjne ti:e onluili wiich the julrs*shr:uld bc proccsssti in urticr to cornplctc all jubs inininilrrtrrn time. Also find tht idle tir:r$ t", *f f op..otin,r*. (I0 iltorks)

it.

b.

What is liirnulation'J Explain r,vith eu.r exaffiplc.

il:,,:,[:::,i.i11i:"--,-I-.1l::il:;'f i,,,o, ftrr p*rouuirig tlifrerc:rr ,.-u, l'fot;iillAssigr ,"lrgrrn tt: riitEr:nt tasks tt: triirirtrize total cost (0? IIIIrks)

f. Lisr graphical methr:d tttt-or lia,o Lrersu': zerlr s,rlm gan:e *,hose. n,Vuif rrrai-r-il];il;;';;Hffir';

ptayern and vahir of the game(I0 lllarlcr)

a' what are objective ftttrction. decisiori variables +tril constrsrir:t.c *,iih rr.fii:rcn.i: t* I-pF,,)

E'il{} i

5

i 'l'irne lor'l'urn'l'ime lirr Thresdin

ilk--- E F iG:HEdili i rrA r8

B 1-1 28 t4 36C_D

19

38 i9 I !!i____+ __2(i i 24

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rbtain the ontirr:ai strateeiesE;

I rr1'-i(05 Mflrl(s)

Page 14: 2nd Semester MBA (June-2014) Question Papers

I2MBA22

tr, List out the diltbrences hetweefi PF)RL' rrnti CPI!{, (tl-* Mlrk*}

c. r\ si.:lf scrv,ic+ .qtrorr.' ctflploys one cashier at it.s cillrrer Nire custottrers nrrivc on arl avcrflge

ev+ry 5 minutes while $n,shier nfllt sewE i{I custonrers in 5 rrtinutss, Assriming Poisson

distrihgtic,n oIarrivulrat+ ancl expou*tttialdistr-ihution of service tirne, find

ii The svetng* qllr'rtr lctlELh'

ii) Averege nutrttrcr 0f ctiiil.tllrleru at. iie utote,

iiiJ Ar.erage r.vaiting time of 4 cusloffim irl quctrc'

i1,) flvcritgc tirtlc a e rt$tomer spends tt tire store',

vi Thr pr,l,t'*hiiit.y ,.hut n ,;llsttriner will sprend mort thau 10 nrintttts at tlte st$te, (10 Marks)

5a.b,

Illustmte Merge anrl Butst evchl$,'l'hq rnadietir:g staff of an Lrduslrial(giving prnfits in trrillion lrf rupccr)

terirno lo gica I itdvauc: u,

tl)F Msrk$)

orgrLnization has submitted thc [cllowiug ptryot]ltobie

corr.c+n:iug ucflaiir pruposal dependiug upon ihe tate rrf

L

4[,iulcNone

The prrhnhilities are 0,2,0.5 lffi(i 0.3 foru:trch, iittlc antlnotl+decisior, should lte tskett?

c, S*l','e the folirrwing I-PP grlphically :

MinimizeT=lgx t40ySuhjcct.l.ox+3Y:r40

it.

h.

x+2y<35x+Y>11)x

' YF 0'

Describi: thc gctcral structure of the queuing sy.stelrt-

te,::htrologicnl advntrce" What

{(l5lllarks)

i) Dra.N' pt'ojccl ttctwork,ii) Finrl the critical pirth and total project dtuatiou.iii) finl thr earliestirnd latest start tinre nnd earliest und latest finish [imr+.

iv) Find tntal float, f'ree float aud ind$pcnelcut flrrat.

(10 Markr)

(05 Mrrks)

(15 Marks)

a. Two firms are cornpeting tbr n:arirct shar+ of a pilftietrlfrr product. Each firrn is considering

different pn:rnotiqrurl slritegres to employ ibr the crrrning period. How should ihey decide?(05l\Ia'ts)

5. you liave ilheritsd Rs 50 lakhs from your grantl thther. You hate several investrtrent

oFtion,s. The rehrrn on inycstmcnt dcpcuds otr lll]cthcr thc cconomy cxpcliBnce.$ inflation,

recession or no ch;rnge at all. IIow should you decide? (05 Mttt*s)

c. Which (J.l{ techniqrie should hc r-rsed to eniirtce the tirrrely colnplcli(til uf N{H'l'lt0 ltail

projer:t in Btrngalore? Explain (tl5 l\llar[s)

a. ifoiv trr allocaie dit'fbrent Faltsilcn lo riil'fcrrnt tcmitoncs if thcir nvcriigt sales it: ..litTeieut

tenitorios is knu!",r: liotn past records. (05 Mrt'ks)

a. The mruragen;nt of fl cotnpfrny is coilsirlerinq thc nrar-kctiug of a n;w pruduct u'ith n fixed

co+t of lr.r l-5,000, Thr selling prir:c.e (Rs), rtrriablc t:osL (Rs) alrcl tlre atrtrual sales'lillutt)e

(utrils) ar+ uflsurl.iiin with l't,llowing distribu_tion ;

2 ttt -1

Terhnological Advnnce

A project cql.:sl:Uqltlt,r fbllpwin$ ac

Page 15: 2nd Semester MBA (June-2014) Question Papers

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12MBA22

Selling Prohtbrlity Varirtble I'rahahility [email protected]_(R-t)

40 0,30050 0.60

0.20

IIsing Monte Cark'r sirrrttlatiou derermini the averagc prufrt fur i{ trials nsing l.[rc

follcwiug r,urdom ry!]EErs-.- (lu Mirk$F."c: Ts1-d+

'oz -io-'5g-Ec l2-3llcost: I :z 46 25 40 68 66 64 86 |

Volumc: | 60 31 24 ()2 ()tt -.90 '19 6Ub. Acr:nlpanyha.sth,.ccitfinffitiirnoftrtrJsonndl70rrr*tdctrrns

rcspet:dvely. It hns t'our dcpt:t A, B, C rurd I) with recluirement of 90, lO(i, 140 tud 120

mctric t6fls rcspsslively, I'he transpoftation cost per ntctric lou in huudreds of rul)ees is as

fallows: (:DJ'o

l)epotB

ill 11

120 9

rs 8

9107 lsR

Findthe optinral distribulion forminimum total transportntion oost, Is thc soiutiun uuiquel

If'not find all optir:raI solutions. (10 Murks)

+****

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