FIN: 512- Investment and Merchant Banking

Chapter-Introduction to Investment banking

1. Describe Investment Banking

2. What are the causes of financial crisis?
3. Describe the types of Investment Banks

Chapter LBO Analysis

1. What do you mean by LBO analysis? What are the uses of LBO analysis?
2. Describe the steps of LBO analysis
3. Explain Build the Pre-LBO Model step of LBO analysis
4. Explain Input Transaction Structure step of LBO analysis
5. Explain the Complete the Post-LBO Model step of LBO analysis
6. Explain steps to Perform LBO Analysis

Chapter Leverage Buyout

1. What do you mean by Leverage Buyout (LBO? Who are the key participants in an
LBO
2. What are the characteristics of a Strong LBO Candidate?
3. What are the two metrics by which sponsors gauge the attractiveness of a
potential LBO?
4. How Leverage is used to Enhance Returns? Explain?
5. What are the primary exit/monetization strategies?
6. Describe the structure of LBO financing
7. What are the primary sources of LBO financing?
8. Describe various selected key terms for LBO financing

Chapter Merger & Acquisition Sale Process

1. What do you mean by Auction? Describe the various types of auction.

2. What are the advantages and disadvantages of broad and targeted auction?
3. Describe the Auction Structure
4. Describe the organization and preparation stage of an auction process
5. Describe the first round stage of an auction process
6. Describe the second round stage of an auction process
7. Describe the negotiation stage of an auction process
 FIN: 512- Investment and Merchant Banking

8. Describe the closing stage of an auction process

9. Define Negotiated Sale. What are the advantages and disadvantages of negotiated
sale?

Chapter Investment Banking Strategies

1. What factors affect the success of investment banking?

2. What major types of risks investment banks face and how they manage these risks?

Chapter Private equity and Venture Capital

1. What do you mean by Private equity? Describe the various types of private equity
valuation models.
2. What do you mean by Venture Capital? What are the characteristics of Venture
capital (VC) investing?
3. Describe the VC Life Cycle
4. Describe the transactions of Venture Capital

Chapter Underwriting equity and debt

1. What do you mean by Underwriting? What are the differences between Underwriting
Equity and underwriting Debt?
2. State the differences between debt securities and equity securities
3. Define Initial public offering (IPO) & state the advantages and disadvantages of IPO
4. Describe the Procedure of Initial Public Offering

Chapter Derivatives and Financial engineering

1. What do you mean by derivative? Explain the different types of derivatives?

2. What are the differences between forward and future contract
3. What do you mean by Swap? Explain the different types of Swap.
4. What is interest rate Swap? What are the economic benefits of interest rate swaps?
5. How currency swaps benefits to both parties of the contract
6. What do you mean by credit derivative? What are the applications of credit
derivative? / Why credit derivatives are used?
7. Explain the different types of credit derivative.
 FIN: 512- Investment and Merchant Banking

Chapter Trading

1. Describe the basic approach of trading.

2. Describe Market Making and Day Trading
3. What do you mean by Arbitrage? Describe the different types of Arbitrage.

Chapter: Financial Services Industry Development and Activities

1. Define financial services. State the nature and characteristics of financial

services.
2. Define Financial Services Industry & State the Classification of Financial
Services Industry
3. Describe the Functions of Financial Services Institutions
4. What are the constituents of financial services? / What are the major components
of financial system?
5. Describe the Factors Affecting Access to Financial Services
6. Describe the Scope of Financial Services
7. What do you mean by leasing? What are the steps of leasing?
8. Describe the different types of leasing
9. Define merchant bank and Banker. State the roles of Merchant Bankers in the
Capital Market
10. What do you mean by Mutual fund? Describe the benefits of mutual fund.
11. What do you mean by Credit rating? State the benefits of credit rating.
12. Define Venture Capital & State the features of venture capital.
13. What do you mean by factoring? State the functions of factoring.