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exam july 18.pdfUniversity of Leicester

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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 Managemen



exam july 18.pdf


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%)


3. Question


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

30%)



e) Explain by means of concrete examples the difference between a "sunk cost" and an "opportunity cost". 

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