Exam Details
| Subject | international finance | |
| Paper | ||
| Exam / Course | mba | |
| Department | ||
| Organization | solapur university | |
| Position | ||
| Exam Date | May, 2017 | |
| City, State | maharashtra, solapur |
Question Paper
M.B.A. (Part II) (Semester IV) Examination, 2017
Group B Financial Management (Paper
INTERNATIONAL FINANCE
Day and Date Saturday, 27-5-2017 Total Marks 70
Time 10.30 a.m. to 1.30 p.m.
Instructions Q. No. 1 is compulsory.
Attempt any two questions from Q. No. 2 to Q. No. 4.
Attempt any two questions from Q. No. 5 to Q. No. 7.
Figures to the right indicate full marks.
1. XYZ MNC is faced with a problem to choose between the following 2 option
Continue to export every year 2,00,000 units of a product at a unit price of
USD 80; its variable cost per unit is 45.
Install a manufacturing unit to produce 5,00,000 units in the country X-the
destination for export.
Setting up of manufacturing plant will involve
Investment Outlay of 50 million
Expected life 5 years
Salvage Value $10 Million.
The MNC follows SLM depreciation. To support additional level of activity,
investment will require working capital of 5 Million.
Since the cost of production are lower in the Country the variable cost of
production and sales would be lower i.e. 20 per unit. Additional fixed costs
per annum are estimated at 2 million. Further, the forecasted selling price is
lower, i.e. 70 per unit to sell 5,00,000 units. The MNC is subject to 40% tax
rate and its cost of capital is 15%.
Assuming that there will be no variation in the exchange rate between the two
countries and all profits can be repatriated, advise the MNC regarding financial
viability of the proposal.
2. Attempt (any
International Banking.
NASDAQ.
At two foreign exchange centers, the following Rs.-USD rates are quoted
London Rs. 47.5730 47.6100
Tokyo Rs. 47.6350 47.6675. Find out arbitrage possibilities for an arbitrageur
who has Rs. 100 million.
3. Attempt (any
If the current exchange rate between the US Dollar and French Franc is FFR
5.0150/USD and interest for the period of one year are and 8.5%
FFR respectively, determine the expected exchange rate after one year.
ECGC.
Country Risk Analysis.
4. Define Globalization. Explain the various financial sector reform's in India.
5. Convert the following rates into outright rates and indicate their spread.
Spot 1 Month 3 Month 6 Month
Rs./USD 35.6300/25 20/35 25/35 30/40
Rs./Euro 55.2200/35 40/30 50/35 55/42
Rs./DM 23.9000/30 30/25 40/60 45/65
6. Explain the characteristics of International Business and Importance of
International Finance.
7. Explain the Purchasing Power Parity and Interest Rate Parity theories of Exchange
Rate Behavior.
Group B Financial Management (Paper
INTERNATIONAL FINANCE
Day and Date Saturday, 27-5-2017 Total Marks 70
Time 10.30 a.m. to 1.30 p.m.
Instructions Q. No. 1 is compulsory.
Attempt any two questions from Q. No. 2 to Q. No. 4.
Attempt any two questions from Q. No. 5 to Q. No. 7.
Figures to the right indicate full marks.
1. XYZ MNC is faced with a problem to choose between the following 2 option
Continue to export every year 2,00,000 units of a product at a unit price of
USD 80; its variable cost per unit is 45.
Install a manufacturing unit to produce 5,00,000 units in the country X-the
destination for export.
Setting up of manufacturing plant will involve
Investment Outlay of 50 million
Expected life 5 years
Salvage Value $10 Million.
The MNC follows SLM depreciation. To support additional level of activity,
investment will require working capital of 5 Million.
Since the cost of production are lower in the Country the variable cost of
production and sales would be lower i.e. 20 per unit. Additional fixed costs
per annum are estimated at 2 million. Further, the forecasted selling price is
lower, i.e. 70 per unit to sell 5,00,000 units. The MNC is subject to 40% tax
rate and its cost of capital is 15%.
Assuming that there will be no variation in the exchange rate between the two
countries and all profits can be repatriated, advise the MNC regarding financial
viability of the proposal.
2. Attempt (any
International Banking.
NASDAQ.
At two foreign exchange centers, the following Rs.-USD rates are quoted
London Rs. 47.5730 47.6100
Tokyo Rs. 47.6350 47.6675. Find out arbitrage possibilities for an arbitrageur
who has Rs. 100 million.
3. Attempt (any
If the current exchange rate between the US Dollar and French Franc is FFR
5.0150/USD and interest for the period of one year are and 8.5%
FFR respectively, determine the expected exchange rate after one year.
ECGC.
Country Risk Analysis.
4. Define Globalization. Explain the various financial sector reform's in India.
5. Convert the following rates into outright rates and indicate their spread.
Spot 1 Month 3 Month 6 Month
Rs./USD 35.6300/25 20/35 25/35 30/40
Rs./Euro 55.2200/35 40/30 50/35 55/42
Rs./DM 23.9000/30 30/25 40/60 45/65
6. Explain the characteristics of International Business and Importance of
International Finance.
7. Explain the Purchasing Power Parity and Interest Rate Parity theories of Exchange
Rate Behavior.
Other Question Papers
Subjects
- (paper – x) financial management
- (paper – xi) human resource management
- accounting for management
- accounting for managers
- agricultural marketing
- agricultural production management
- agro-processing industries and rural industrialization
- banking and insurance (paper – xvi)
- brand management and social marketing
- busines ethics
- business ethics (new) (cbcs)
- business ethics (old)
- corporate planning and strategic management (old)
- corporate planning and strategic management(old cbcs)
- day and date : friday, 30-11-2018 total
- economic environment for business
- entrepreneurship development and project management
- excel
- excellence in management
- export policy, procedure and documents (paper – ii)
- financial decision analysis
- financial management
- fundamentals of agriculture and co-operative management
- fundamentals of agriculture and co-operative management (new cbcs)
- global human resource management
- group d – system management (paper – ii)
- human resource initiatives (paper – ii)
- human resource management
- indian financial system
- indian financial system (paper – xix)
- industrial engineering
- industrial relations and labour regulations
- integrated marketing communication and consumer behaviour
- international busines (paper – xiii)
- international business environment (old)
- international business environment (paper – i)
- international finance
- international financial system and markets
- international financial systems and markets
- international logistics
- international marketing
- international trade and agriculture
- international trade procedures and documentation
- international trade procedures and documentations
- investment management
- it for management
- legal aspects of busines
- legal aspects of business
- logistics and supply chain management
- logistics and supply chain management (paper – xx)
- management accounting
- management accounting (paper–xviii)
- management acounting
- management information system
- managerial communication – i
- managerial communication – ii
- managerial economics
- managerial excellence
- marketing management
- marketing management (cbcs)
- operations management
- organisational behaviour
- organizational behaviour
- paper – ix : marketing management
- paper – xii : production and materials management (old)
- paper – xiii : economic environment of busines
- paper – xiv : managerial comunication – ii
- paper – xv : research methodology
- paper – xvi : event management(new)
- paper – xvi : operations management
- paper – xvii : strategic management
- performance management and compensation
- perspectives of management
- principles of management
- product and brand management
- product and brand management (paper – i)
- production and materials management
- production management and operations research (paper – xii)
- programing concepts and advanced
- programming concepts and advanced excel
- project planning and working capital management
- purchasing and inventory management
- purchasing and inventory management (paper – xix)
- quality management
- relational database management system
- research methodology
- research methodology (paper – xv)
- retail and rural marketing
- sales and distribution management (new) paper – xx
- sales and strategic marketing
- sales and strategic marketing (new cbcs)
- sales and strategic marketing (old)
- security and control information system
- skill development (paper – xix)
- statistical methods
- statistics for management
- strategic financial management
- strategic financial management (paper – ii)
- strategic human resource management
- strategic human resource management (old)
- strategic human resource management (paper – xix)
- system management
- system management security and control information system
- systems management
- systems management (paper – i)
- systems management (paper – ii)
- taxation
- training and development
- training and development gr.c : human resource management
- world class manufacturing