Jagannath University

Department of Finance
MBA ftln't'n,
Course Code: FIN-5101 Title: Modern Finance Theory
TotalTime: 1 Hour Total Mark: 10
(Ansler any four out of th. follo*ing qr.rtio.
nOicate the full marks.)
s Separation ncluding solution.
b) lllustrate lnvestorsl Reactions to Decisions.
State Fisher's Separation Theorem Formal Approach with gra
Explain State Preference Theory.
Consider two firms with the following data.
Firm A --> stock price = 62, lnvestment cost 10
=
Firm B => stock price = 56, lnvestment cost = g
States Payoffs Payoffs
on Stock on lnvestme
Firm A Firm B A
Firm Firm B
1. 100 40 10 1.2
23090 125
i) First find the pure securities prices as before.
ii) Use these to find the NpVs for each investment and ive decisions.
a) What is Mean-variance analysis?
b) Explain Assumptions necessary for mean-variance efficiency anarysis.
a)Youareexaminingthreeinternationalindices.wr,.tffi
standard deviation of a portfolio composed of 50% French equities, 25%
English
equities, and 25% German equities?
Correlation with:
Portto lto Expe.ret I Stddev. French English German
l-rench i7.028 i17.447 7
sh Is,gzo 0.2390 1
-o.o7t
"0.724 i0.2894 0.5830 1
"7.431
 Midterm-2, 6th Batch, MBA
FIN-5101, Modern Finance Theory
Time: t hour, Fullmarks: 10
Answer the follow uestions
Differentiate call option from put option.
i What are the differencencs o ion contracts and future contracts?
i Define put<all pariW with formula.
: State Sales Enhancement and Ooerati Economies.
What About Earnings Per Share (EPS)?
What is tender offer? Discuss Two-tier Tender Offer.
 Jagannath UnivensEty
Department of FEnanee
MBA Program 6th Batch
2nd semester First Mid-Term Examination-20L7
Subject: Finance Course Code: Fin-5215
Course: Research methodologY
Full Marks: 10 Time: 45 minutes

NB: No alternative questions

-Af.lVhat is research? Write down about Descrlptive vs. Analytical research. 03
.q{. Oefine experimental variable and control variable. 02

fr3.Differentiate between Probability sampling from non- probability sampling 03

g+. Acertain population is divided into five strata so that N1=2000, N2=2000, N3=180 N4=1700 and
N5=2500. Receive standard deviations are: o1=1.6, o2=2.0,o3=4.4,04= 4.8, o5=6.0 and furtherthe
expected sampling cost in the first two strata is Tk.4 per interview and in the remainlng three strata the
sampling cost is Tk.6 per interview. How should a sample size of n=226 be allocated to five strata if we
adopt proportionate sampling design? 02
 Jagannath UniversitY
Department of Finance (Mid-2)
MBA 2"d Semester (6th Batch)
Course Code: FIN-5215 Title: Research Methodology
TotalTime: 1 Hour Total Mark: 10
right margins indicate the full marks'

classes in flve subjects wiih equal

ber of absentees in these five classes
isT5.Testthehypothesisthattheseclassesarealikeinabsenteeismif
the actual absentees in each are as follows:
Bangla = 19
PhilosoPhY = 18
Finance = 15
lnvestment analYsis = 12

n.D
n
ercu
Amount of Blc

^f D-^la I Z
lruP- vr r wyrv
l6 10 r0
A
IO 9 d
I3
B ll 1
l0 8 t2
l0 tt2 l0
C
ll l3 l0
tt drugs act differentlY?
Do the eo

differentl-v--?
Are the different groups oipeople affected
ls the interaction term significant?
ificant level of 5ol0.
Ans*'er the above qlgsttg!:ta!
 Department of Finance
Jagannath University, Dhaka
course Title: corporate Governance and Restructuring (course code: 5211.)
znd Mid-term Examination
Time:4O Minutes Marks:10

Answer All the Questions: (3 + 3 + 4)

1. Explain .he reasons for corporate restructuring. Describe the different forms of Corporate Restructuring,
2. Why is synergy important for corporation? Explain different types synergy and process of realizing
synergtc ga tns.
3. Movement Group is evaluating the acquisiticn of Nameless Group, a firm that has shown large operating
tax losses over the past few years. As a result of the acquisition, Movement Group believes that the total
pre- tax profits of the merger will not change. Nameless Group has a tax loss carry forward of Tk.1.g
million. Movement Group can purchase Nameless Group forTk.2.1 million. lt can sell the assets forTk.1.6
million. Movement Group expects earnings before taxes in the 6 years after the merger to be as shown in
the following table
able (in
( Tk).
Yea r 1_ 2 3 4 5
EBT 5,00,000 I 0,+o,ooo 4,00,000 4,00,000 2,50,000
The expected earnings given are assumed to fall within the annual limit that is legally allowed for application
of the tax loss carry fonauard resulting from the proposed merger. The discount rate is 1,1,.75%, Movement
Group is in the 4OYolax bracket. Find out the followings
l. Calculate the firm's tax payments and earnings after taxes for each of the next 5 years without the
merger.
ll. Calculate the firm's tax payments and earnings after taxes for each of the next 5 years with the
merger.
lll. What are the total benefits associated with the merger?
l!'. Discuss whether you would recommend the proposed m()rger.
 Jagannath University
Faculty of Business Administiation
Department of Finance
MBA, 2od Semestei, l', Mid_i;;Examinati
course code: FrN-5207; course Title: Financial on,20l7
Engineering and Derivatives
Time:50 Minute
Manks: l0
marks' Answer anv 2 (two)quesrions.
Hilffi#lh"T"*"Hff"hTjlTl Maintain the sequence of answer

1' A' what is a forward contract? Describe

the payoffs from forward contracts
with graph.
B. Present graphically net profit per
share from

D Purchasing a contract consisting of 100 Beximco

April call options with a strike price of
$25 and

ii) Pruchasing a contract consisting of 100 Beximco April put options with a strike price of
$18.50.

-.2- A- Describe dilfferent types of traders

invorve in the derivative markets.
B. Differentiate between forward and
futures contracts.

onth and 30-month zero rates are respectively,

with continuous compounding. If the
face value
L30months and pays a coupon of 4yoper
semi-annually, han calculate the price annum
of the bond.
 Jagannath Universify
Department of Finance
MBA, 2nd Semest er, Znd Mid-Term Examinati on, 2017
Course Code: FfN{-5207; Course Title: Financial Engineering and Derivatives

Time: 40 Nlinutes Manks: 10

[lnstructions: All questions contain equal marks. Answer any I (one) questions. Maintain the sequence of answer
for all parts of each question you answer.]

l. Kwhatis a short selling? How an arbitrager can gain over short selling and doing a forward
contract? Give an example. (4+6)

a 6month long forward contract on a stock when the stock price is Tk. 40. We
/ /Consider
1, assume that the risk free rate of interest compounded continuously is 7Yo per annum. We
also assume that dividends-qf_Tk"2.5J., share is expected after 3months, 6months and
gmonths. If the delivery price oI-tna'contract. is Tk. 30 then calculate the value of the
forn'ard contract.

2. A. &'hat is _SWAP? Describe the mechanjsqo,LSWAP with an example. (4+6)

/'
,4. Consider the following inforrration of two company:

Company Rupees Dollars

1 C-Company
I

D-Company LI.I%
I

Now-, design a swap that will net a bark 50 basis points per annum. And also make the swap
equally attractive for both the company.