University of Leicester
MSc Fin MN7541 SFM D/L OCT 2018
October Examinations 2018
DO NOT OPEN THE QUESTION PAPER UNTIL INSTRUCTED TO DO SO BY THE CHIEF INVIGILATOR Department
SCHOOL OF BUSINESS
Module Code MN7541 Module
Title MSc FINANCE Strategic Financial Management
2. Question 2
a) Illustrate the fundamental techniques of environmental analysis that you have studied in this module. Make sure you discuss in detail strengths and vulnerabilities of each technique. (15%)
b) In the context of existing models of strategic analysis, analyze the so called "portfolio analysis" and "SWOT analysis". (15%) (Total 30%)
Consider the following investment appraisal techniques. - Payback; - Accounting rate of return (ARR); - Net present value (NPV); - Internal rate of return (IRR); - Real options.
Analyze in detail each of these techniques, also providing a brief comparison between them. Why are discounted cash flow (DCF) techniques considered as better than earnings-based techniques? (30%) (Total 30%)
4. Question 4
a) Introduce the notion of "synergy" within acquisition strategy. Then, discuss, with the help of numerical examples, why synergies are so important for mergers and acquisitions processes. (15%)
b) Discuss in detail the fundamental motivations that induce two companies to merge. Make sure you distinguish between sensible reasons and dubious reasons. 5%) (Total
e) Explain by means of concrete examples the difference between a "sunk cost" and an "opportunity cost".
Recently Asked Questions
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