Module - 1: Mergers and Acquisitions-

1. meaning, types and motives;

2. merger waves - meaning, classification and reasons;
3. industrial shocks and industrial clustering;
4. theories of corporate mergers - efficiency theories, information and
signaling, agency problems and managerialism etc;
5. measurement of cost and benefits of mergers;
6. sources and measurement of value creation in mergers.

Module - 2: Valuation and Financing of Mergers-

1. Merger Process - Steps involved and characteristics of target companies-
due diligence process - target valuation methods;
2. determination of stock exchange ratio - book value, EPS and MPS
methods -usefulness of P/E ratio;
3. methods of payment, Legal process of mergers in India;
4. merger failures - meaning, reasons and strategies to control merger
failures;
5. methods of analysis of post-merger performance;
6. analysis of merger trends and failures in India.

Module - 3: Market for Corporate Control

1. Meaning, objectives and types of takeovers;
2. open offer v/s tender offer;
3. SEBI’s takeover code – meaning, objectives and broad takeover
guidelines;
4. takeover defenses-need, types and effects of takeover defenses;
5. takeovers in India and defenses employed;
6. financing of takeovers.

Module - 4: Other forms of restructuring:

1. meaning, reasons and significance of corporate restructuring;
2. forms of restructuring -expansion, sell-offs, corporate control and
changes in ownership structure;
3. debt and equity restructuring, exit strategies;
4. sources and measurement of value creation in corporate restructuring;
5. corporate restructuring in India-private and public sector enterprises;
6. effects of restructuring.
 Module - 5: Industrial Sickness –
1. Meaning, causes and symptoms of industrial sickness;
2. magnitude of industrial sickness in India;
3. prediction of industrial sickness - univariate and multivariate methods -
Beaver's study, Altman's Prediction Model, L C Gupta's Model;
4. rehabilitation and revival sick units; sickness in India among SMEs and
manufacturing sector; Indian Bankruptcy Code.

Based on the provided syllabus and question papers, here is a breakdown of the
questions by module and section.
[Link]. DEGREE EXAMINATION MAY 2017
Section A
* 1. (a) What is asset sale? - Module 4: Other forms of Restructuring
* 1. (b) Mention the advantages of leveraged recapitalization. - Module 4:
Other forms of Restructuring
* 1. (c) Give meaning of DVRs. - Module 4: Other forms of Restructuring
* 1. (d) Differentiate between operating and financial mergers. - Module 1:
Mergers and Acquisitions
* 1. (e) What is free cash flow? - Module 2: Valuation and Financing of
Mergers
* 1. (f) State how mergers create financial synergies? - Module 1: Mergers and
Acquisitions
* 1. (g) What is horizon value? - Module 2: Valuation and Financing of
Mergers
* 1. (h) State why hostile takeovers are difficult in India. - Module 3: Market
for Corporate Control
* 1. (i) What do you mean by Packman defence? - Module 3: Market for
Corporate Control
* 1. (j) Define industrial sickness. - Module 5: Industrial Sickness
Section B
* 2. What are the various of equity restructuring? Explain. - Module 4: Other
forms of Restructuring
 * 3. 'Debt capacity of the combined firm can be greater than the sum of the two
firms' capacities before their merger'. Explain with suitable example. - Module
2: Valuation and Financing of Mergers
* 4. A firm after intensive exercise of restructuring is able to improve its cash
flows... Find the value generated by the firm's decision to restructure. - Module
4: Other forms of Restructuring
* 5. Slow Ltd. Proposes to acquire the business of Fast Ltd... determine the
value payable by Slow Ltd. to Fast Ltd's shareholders. - Module 2: Valuation
and Financing of Mergers
* 6. Compute from the following information the five the most powerful ratios
for predicting industrial sickness as per William H Beaver's study. - Module 5:
Industrial Sickness
Section C
* 7. Explain various reasons for merger failure and steps to be taken to prevent
merger failures. - Module 2: Valuation and Financing of Mergers
* 8. What is takeover code? Explain its salient regulations relating to offer size,
offer period, offer price and offer withdrawal. - Module 3: Market for Corporate
Control
* 9. You have been provided the following financial data of two companies...
What will be the EPS subsequent to merger? What is the change in EPS...?
Determine the market value... Ascertain the profits accruing to shareholders... -
Module 2: Valuation and Financing of Mergers
* 10. Tiger Ltd wants to acquire Leopard Ltd... Make a report to the Board of
the company advising them about the financial feasibility of this acquisition. -
Module 2: Valuation and Financing of Mergers
* 11. Unlucky Ltd's financial information for the last two years have been
extracted... Using Altman's MDA approach, comment on the financial health of
Unlucky Ltd. - Module 5: Industrial Sickness
[Link]. DEGREE EXAMINATION MAY 2018
Section A
* 1. (a) What is meant by portfolio restructuring? - Module 4: Other forms of
Restructuring
* 1. (b) What is market for corporate control? - Module 3: Market for
Corporate Control
* 1. (c) Give meaning of leveraged buyouts. - Module 4: Other forms of
Restructuring
* 1. (d) What is meant by merger wave? How do you identify merger waves? -
Module 1: Mergers and Acquisitions
* 1. (e) State the effects of using EPS based swap ratio in mergers. - Module 2:
Valuation and Financing of Mergers
* 1. (f) State how sale of crown jewels acts as defensive mechanism. - Module
3: Market for Corporate Control
* 1. (g) What are staggered boards? - Module 3: Market for Corporate Control
* 1. (h) State the duties of directors in hostile takeover attempts. - Module 3:
Market for Corporate Control
* 1. (i) Define incipient sickness. Distinguish it from sickness firmly
established. - Module 5: Industrial Sickness
* 1. (j) What is zone of ignorance as per Altman's Discriminant Model? -
Module 5: Industrial Sickness
Section B
* 2. Examine how spin offs, split-offs, divestitures and equity carve outs
strategies help firms to restructure their business activities. - Module 4: Other
forms of Restructuring
* 3. What are the objectives of SEBI's Takeover Code? Explain various
takeover code violations in India. - Module 3: Market for Corporate Control
* 4. Fisher Ltd. is in deep financial crisis... compute the changes in debt-equity
ratio and interest coverage ratio of the company. - Module 4: Other forms of
Restructuring
* 5. Shekar Ltd. is determined to report earnings per share of Rs. 8.00 per
share... ascertain exchange ratio. - Module 2: Valuation and Financing of
Mergers
* 6. The following information is available in respect of two industries... Find
the HH Index and comment on the market concentration in each industry. -
Module 1: Mergers and Acquisitions
Section C
 * 7. Compare and contrast dividend and free cash flow based valuation
approaches in target firms' valuation. - Module 2: Valuation and Financing of
Mergers
* 8. Explain why hostile takeovers have been relatively uncommon in India.
Critically examine their necessity in today's corporate world. - Module 3:
Market for Corporate Control
* 9. A Ltd is a subsidiary of X Ltd and is acquiring B Ltd which is also a
subsidiary of X Ltd... compute the swap ratio and other financial metrics. -
Module 2: Valuation and Financing of Mergers
* 10. X Ltd faces the risk of takeover... Evaluate the defensive mechanism and
suggest the better alternatives. - Module 3: Market for Corporate Control
* 11. You are provided the following data relating to two textile firms...
Calculate the best financial ratios developed by Charles Merwin and William
Beaver in identifying the sick firms. - Module 5: Industrial Sickness
[Link]. DEGREE EXAMINATION, MAY/JUNE 2019
Section A
* 1. (a) What is meant by divestiture? - Module 4: Other forms of Restructuring
* 1. (b) Differentiate between equity shares with voting and differential-voting
rights. - Module 4: Other forms of Restructuring
* 1. (c) Give meaning of portfolio restructuring. - Module 4: Other forms of
Restructuring
* 1. (d) What is a cross-border merger? How is it different from international
merger? - Module 1: Mergers and Acquisitions
* 1. (e) Indicate potential areas of synergy gains in merger. - Module 1:
Mergers and Acquisitions
* 1. (f) Indicate the relationship between Hubris Hypothesis and Winner's
Curse Hypothesis. - Module 1: Mergers and Acquisitions
* 1. (g) What is meant by equivalent EPS? - Module 2: Valuation and Financing
of Mergers
* 1. (h) What is friendly takeover? - Module 3: Market for Corporate Control
* 1. (i) State meaning of sickness as per RBI and ICICI. - Module 5: Industrial
Sickness
* 1. (j) Give meaning of misclassification error. - Module 5: Industrial Sickness
Section B
* 2. Explain anti-takeover amendments used for prevention of hostile takeover
attempts. - Module 3: Market for Corporate Control
* 3. Discuss the L.C. Gupta Model of predicting industrial sickness in India. -
Module 5: Industrial Sickness
* 4. E Ltd plans to acquire F Ltd... What is the true cost of the merger from the
point of view of E Ltd? - Module 2: Valuation and Financing of Mergers
* 5. Shivshanker Ltd has the following capital structure... Calculate the interest
coverage ratio before and after restructuring. - Module 4: Other forms of
Restructuring
* 6. Not-so-Lucky Ltd provides the following balance sheet... Use Altman's
discriminant function. - Module 5: Industrial Sickness
Section C (3 × 15 = 45 marks)
7. Discuss the various forms of restructuring assets and ownership of
companies. - Module 4: Other forms of restructuring
8. Explain relative merits and demerits of different methods of determining
share exchange ratio in corporate mergers. - Module 2: Valuation and Financing
of Mergers
9. The following is the balance sheet of X Ltd as on 31st March, 2018... -
Module 4: Other forms of restructuring
10. You are required to: (a) Show the impact of financial restructuring on the
company's activeness... (b) Prepare the fresh Balance Sheet after the
restructuring is completed... - Module 4: Other forms of restructuring
11. The following information is available in respect of A Ltd, B Ltd and C
Ltd... (a) Calculate the pre-merger market values of each company. (b) A Ltd
wants to use its stock for acquisition of the companies on the basis of market
prices... (c) Should A Ltd acquire only B Ltd or C Ltd or both B and C Ltd? -
Module 2: Valuation and Financing of Mergers
[Link]. DEGREE EXAMINATION, SEPTEMBER 2022
Section A
* 1. (a) How mergers create synergy value? - Module 1: Mergers and
Acquisitions
* 1. (b) What are upstream and downstream mergers? Give examples. - Module
1: Mergers and Acquisitions
* 1. (c) Recently SBI subsidiary banks were merged with SBI. Name all of
them. - Module 1: Mergers and Acquisitions
* 1. (d) Give meaning and reasons for industry clustering of mergers. - Module
1: Mergers and Acquisitions
* 1. (e) State how 'inefficient management' theory is an explanation for
conglomerate mergers. - Module 1: Mergers and Acquisitions
* 1. (f) Which exchange ratio keeps EPS unchanged? - Module 2: Valuation
and Financing of Mergers
* 1. (g) What are spin offs? State recent examples. - Module 4: Other forms of
Restructuring
* 1. (h) Give meaning and forms of equity restructuring. - Module 4: Other
forms of Restructuring
* 1. (i) Why do firm issue 'Equity shares without voting rights'? - Module 4:
Other forms of Restructuring
* 1. (j) Give meaning of MBO. - Module 4: Other forms of Restructuring
Section B
* 2. Explain the concept of 'industrial shocks'. What are industrial shocks that
trigger merger waves? - Module 1: Mergers and Acquisitions
* 3. Give meaning of the diligence in mergers. Bring out its importance. -
Module 2: Valuation and Financing of Mergers
* 4. Narayan Ltd. is intending to acquire Krishna Ltd... What is the present EPS
of both the companies? - Module 2: Valuation and Financing of Mergers
* 5. Dwaraka Ltd. was referred to NCLT... Find new debt-equity ratio. -
Module 4: Other forms of Restructuring
Section C
* 7. List out all motives for corporate mergers. Which motive should prevail in
mergers and explain in detail? - Module 1: Mergers and Acquisitions
* 8. Describe the following takeover defensive mechanism: a) Golden
parachutes b) Pacman defense c) Fatman strategy d) Staggered boards. - Module
3: Market for Corporate Control
* 9. Tatu Ltd. wants to takeover Mantu Ltd... You are required to calculate... -
Module 2: Valuation and Financing of Mergers
* 10. An asset limited company is going to be demerged... advise the correct
value of the company. - Module 4: Other forms of Restructuring
* 11. Murali Ltd. and Basuri Ltd. are in the same industry... Evaluate the
following under both the alternatives... - Module 2: Valuation and Financing of
Mergers
2023
Section A
* 1. (a) What are mergers and what do they represent? - Module 1: Mergers and
Acquisitions
* 1. (b) State why first merger wave was described as merging for monopolies.
- Module 1: Mergers and Acquisitions
* 1. (c) Give reasons for managerial hubris in merger decisions. - Module 1:
Mergers and Acquisitions
* 1. (d) How P/E ratio exchanged is determined? - Module 2: Valuation and
Financing of Mergers
* 1. (e) Give meaning of Q-theory of mergers. - Module 1: Mergers and
Acquisitions
* 1. (f) How use of short-term debt leads to merge failure? - Module 2:
Valuation and Financing of Mergers
* 1. (g) What is due diligence? - Module 2: Valuation and Financing of Mergers
* 1. (h) State the effect of spin-offs on ownership structure. - Module 4: Other
forms of restructuring
* 1. (i) What is buyback of shares? - Module 4: Other forms of restructuring
* 1. (j) Give meaning of dual-class recapitalization. - Module 4: Other forms of
restructuring
Section B
* 2. "A price rise leads to a decrease in merger activity." Examine the
statement. - Module 1: Mergers and Acquisitions
* 3. Explain the concept and motives of corporate restructuring. - Module 4:
Other forms of restructuring
* 4. Supreme Ltd. is examining super hotels for acquisition... - Module 2:
Valuation and Financing of Mergers
* 5. Good Ltd. is considering merger with Better Ltd... - Module 2: Valuation
and Financing of Mergers
* 6. The market and book values of GH Ltd are as given below... Calculate
Tobin's q ratio... - Module 1: Mergers and Acquisitions
Section C
* 7. Explain various motives of corporate mergers. - Module 1: Mergers and
Acquisitions
* 8. Evaluate the reasons for corporate restructuring. Explain various forms of
restructuring. - Module 4: Other forms of restructuring
* 9. The company did not perform well... Prepare fresh Balance Sheet after the
reconstruction... - Module 4: Other forms of restructuring
* 10. B Ltd. wants to acquire S Ltd. and has offered a swap ratio of 2:3... -
Module 2: Valuation and Financing of Mergers
* 11. X Ltd. a start up entity in Hubli is encountering the threat of takeover...
Prepare post-restructuring Balance Sheet... - Module 3: Market for Corporate
Control
2024
section A
* 1. (a) State the meaning of vertical merger? Distinguish between backward
and forward merger. - Module 1: Mergers and Acquisitions
* 1. (b) Give meaning of Managerialism? - Module 1: Mergers and
Acquisitions
* 1. (c) What is Tobin's q ratio and what it indicates? - Module 1: Mergers and
Acquisitions
* 1. (d) What is acquisition price? - Module 2: Valuation and Financing of
Mergers
* 1. (e) Give meaning of takeover code. - Module 3: Market for Corporate
Control
* 1. (f) What do you mean by sale of crown jewel defense? - Module 3: Market
for Corporate Control
* 1. (g) Differentiate between entry and exit strategies of restructuring. -
Module 4: Other forms of restructuring
* 1. (h) What are shark repellants? - Module 3: Market for Corporate Control
* 1. (i) Give meaning of leveraged recapitalization. - Module 4: Other forms of
restructuring
* 1. (j) Identify the effects of debt restructuring. - Module 4: Other forms of
restructuring
Section B
* 2. What are industrial shocks? Specify examples. - Module 1: Mergers and
Acquisitions
* 3. Explain the importance of due diligence in mergers. - Module 2: Valuation
and Financing of Mergers
* 4. Two companies A Ltd and B Ltd's financial figures are stated below... -
Module 2: Valuation and Financing of Mergers
* 5. Value of Target Company is ₹ 500 million, Value of the acquiring
Company is ₹ 800 million... - Module 2: Valuation and Financing of Mergers
* 6. X Ltd has outstanding debt of ₹ 500 crores carrying 14% interest rate... -
Module 4: Other forms of restructuring
Section C
* 7. What is ownership restructuring? What are the forms of ownership
restructuring? - Module 4: Other forms of restructuring
* 8. Explain effects of MPS based exchange ratio on wealth of shareholders. -
Module 2: Valuation and Financing of Mergers
* 9. Kolkata Ltd and Mumbai Ltd have agreed that Kolkata Ltd will take over
the business of Mumbai Ltd... - Module 2: Valuation and Financing of Mergers
* 10. A Ltd is considering the acquisition of B Ltd with stock. Relevant
financial information is given below... - Module 2: Valuation and Financing of
Mergers
* 11. Highland Company is considering the acquisition of Lowland company in
a stock-for-stock transaction... - Module 2: Valuation and Financing of Mergers