FMCF: UNIT-WISE NUMERICALS (2016-2025)
Unit 1: Merger and Acquisition Numericals
YEAR: 2023-24 / 2021-22 / 2019-20 (Repeated Language)
Section C: A Ltd. is considering acquiring B Ltd. The following information is available for both the companies:
| Particulars | A Ltd. (₹) | B Ltd. (₹) |
|---|
| Profit after tax (PAT) | 30,00,000 | 6,00,000 |
| Number of equity shares | 6,00,000 | 2,00,000 |
| Market value per share | 150 | 60 |
Calculate:
(i) Post acquisition EPS if exchange ratio is based on market price.
(ii) The number of shares to be issued to B Ltd. shareholders.
YEAR: 2017-18 / 2016-17 (M&A Valuation)
Section B: X Ltd. wants to acquire Y Ltd. by exchanging its 0.5 shares for every 1 share of Y Ltd. The PAT of X Ltd. is ₹ 50 Lakhs (Shares: 10 Lakhs) and Y Ltd. is ₹ 10 Lakhs (Shares: 4 Lakhs). Calculate the combined EPS after merger.
Unit 2: Capital Budgeting Numericals
YEAR: 2022-23 / 2018-19 (IRR focus)
Section B: A project cost ₹ 96,000 and is expected to generate cash inflows of ₹ 24,000, ₹ 32,000, ₹ 40,000, ₹ 32,000 and ₹ 20,000 at the end of each year for next 5 years. Calculate project's Internal Rate of Return (IRR).
YEAR: 2023-24 (NPV Mutually Exclusive)
Section C: A company is considering two mutually exclusive machines A and B. Both have a 4-year life. The cost of capital is 10%. The cash inflows are:
| Year | Machine A (₹) | Machine B (₹) |
|---|
| 0 (Initial Investment) | (1,50,000) | (2,00,000) |
| 1 to 4 | 60,000 each | 70,000 each |
Advice using NPV method. (PV Factor @10%: 0.909, 0.826, 0.751, 0.683).
Unit 3: Leverage & EBIT-EPS Numericals
YEAR: 2023-24 / 2017-18
Section B: Calculate Operating Leverage, Financial Leverage and Combined Leverage:
- Sales: 1,00,000 units @ ₹ 2 per unit. Variable Cost: ₹ 0.70 per unit. Fixed Costs: ₹ 1,00,000. Interest on 10% Debentures: ₹ 10,000.
Unit 5: Working Capital Numericals
YEAR: 2024-25 / 2021-22 (Full Statement)
Section C: Prepare a statement showing the working capital requirement for a level of activity of 1,56,000 units of production:
| Raw Material | ₹ 90 per unit |
| Direct Labour | ₹ 40 per unit |
| Overheads (incl. ₹ 15 dep.) | ₹ 75 per unit |
Holdings: RM 4 wks, WIP 2 wks, FG 4 wks. Credit: Suppliers 4 wks, Debtors 8 wks. Wages Lag: 1.5 wks. Cash: ₹ 60,000.