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- 1. Izl/IB.A22 USN Second Semester MBA Degree Examination, Dec.2013 /Jan.2ol4 Quantitative Methods - ll Time: 3 hrs. Note: i) a. b. 0.) (.) 39 c. G9 7r) -bo .Q .=N tili::l6:^X#:',::;;:;::;{"mQNo ? o g t 3. Use of statisticsl tables permitted. o I '; Max. Marks:100 to 6' I Hbo Yc) ot: -O ?a a , ,. ,. , , ,, l)a--, (03 Marks) What is degeneracy of transportation problem? Write the dual of the following LPP. Maximize Z:3xr 1- 4xz + 7xz Subject to, X1 * X2 + x3 < 10 4xt *xz-xr > 15 (07 Marks) xr i,x: * xt : 7 ; X1 , X2 ) 0, x3 unrestricted. A stockiest of a partictrlar commodity makes a profit of '30 on each sale made within the same week of purchase; otherwise he incurs a loss of,30 on each item. The data on the past data are given below: 8 9 10 11 No. of items sold within the same week 5 6 7 0 0 9 t2 24 9 6 Frequency (i) Find o t fhe onfimrrm memher of items the stoc kiest sl roulc buy every week in order to maximize the profit. (10 Marks) (ii) Calculate the expected value of perfect information. o() B's stratesv -v a6 br oi o: 4 lr= G; ^.= =9 >(i coo 6= go tr> :o o- rJ< -i 6i () o z H o A's strategy c. bz dt 8 5 -7 dz 3o 6ir ag (03 Marks) (07 Marks) Define Operations Research. hi Solve the following game usrng graptuca us 50tr -6 6 bt 4 ,,,,b3 9 A company manufactures 30 units/day. The sale of these items depends upon demand which has the f,otrlowing distribution. Sales (units.; Probability 27 28 29 30 0.10 0.15 0.20 0.35 0.15 0.0s 31 kn ffi; i 'r> t4 rl. )Z production cost and sale price of each unit are '40 and ' 50 respectively. The product is to be disposed off at a loss of ' 15 per unit. There is a penalty of ' 5 per unit if the demand is not met using the following random numbers, estimate the total profit/loss for the company for the next 10 days. 10, 99, 65, 99,95, 01, 79, ll, 16,20 If the company decides to produce 29 units per day, what is the advantage or disadvantage (lo Marks) of the company? 1 of3
- 2. IziMBA22 a. b. c. What is the redundant constraint? (03 Marks) Explain the steps followed in solving the operations research problems. (07 Marks) A tlpist at an office receives, on an average 22 letters per day of typing. The typist works 8 hours a day and it takes on an average 20 minutes to type a letter. The company has determined that the cost of a letter waiting to be mailed (opportunity cost) is 80 paise per hour and the equipment operating cost plus salary of the typist will be 40 per day. (i) What is the tlpists utilization rate? (ii) What is the average number of letters waiting to be typed? is the average waiting time needed to have a letter typed? (iv) What is the total cost of waiting letters to be mailed? (iii) What (10 Marks) 4 a. Give a general structure of queuing system and explain. Illustrate some queuing situations. b. Find the sequence that minimizes the total elapsed time required to complete the following (05 Marks) jobs on machines Mr, 42 and M: in the order M, B C D E F A Job 2 5 1 J 7 8 Mr (05 Marks) Mz 5 2 8 7 6 9 6 l0 9 Consider the following game and solve by algebraic method. Player B Plaver a. b. c. 4 M: c. J A a 1 J 1 2 6 7 (10 Marks) 4 1 What are the steps/phases in simulation? Explain. (05 Marks) Explainthe op€rating characteristics of queuing system. (05 Marks) aouvllres wnlull ists oI A small proi conslsls of seven activities which are grven below: Duration Activity Ootimistic Pessimistic Immediate Predecessor Most Likelv a 7 1 J A 14 A 2 B 6 a 1 J J A J C 22 B.C 4 10 D 1 E 7 J 15 B F 5 2 14 D,E G 4 4 4 D (D Draw the network, number of nodes, find the critical path, expected project (ii) completion time and the next most critical path. What project duration will have 95o/o confidence of 2 of3 competition? (10 Marks)
- 3. I2M.BA22 / 6 a. Find the initial feasible solution of the following transportation problem by least cost (05 Marks) method. Sunnliers Wz Wr 60 56 140 Fz Wr 48 45 55 53 260 F: 50 65 60 360 220 F1 Fa b. A small maintenance 52 64 55 Demand 200 320 250 project consists of following jobs whose precedence relations identified with their nodes numbers: Activity Duration (days) 1-2 2 1-3 4 1-4 2-5 3-5 4-6 5-6 3 6 5 Required: (i) Draw project network. (ii1 Find the critical path and total project duration. (iiil Find the earliest and latest start time and earliest and latest finish time. (iv) Find total floal. lree float and independent float. 7a. b. (15 Marks) There are 4 plants with capacity I00, 150,204,50 units and 4 warehouses with demand 50, 150, 100, 100. The marketing manager is assigning new MBA graduate joined to use TPM model. Without altering the data is it possible to apply transportation model? Why? A social entrepreneur is tretplng 2 persons who are pfaying a game. Player *J'i,Xll-il " are under assumption that the loss of one person will be a benef,it to social entrepreneur? How do you convince the player? (05 Marks) Three operators are to be assigned to three machines based on the operational time. Supervisor suggest to use OR techniques, whereas operator wants experience base. Who is d. (05 Marks) correct? Why? Customers in a bank always complaint about delay in service extended. Bank manager has a problem of resource for appointing more employees. IF you are consultant, how do you (05 Marks) suggest an optimal solution? Assume you have inherited - 100000 fiom your father in law that can be invested in a combination of only two stock portfolios, with the maximum investment allowed in either portfolio set at'75000. The first portfolio has an average return of 70Yo, whereas the second has 20Yo, in terms of risk factors associated with these portfolios, the first has a rating of 4 (on a scale from 0 to 10), and the second has 9. Since you want to maximize your return, you will not accept an average rate ofreturn below l2oh or a risk factor above 6. Hence, you then face the important question, how much you invest in each portfolio. You are required to: (i) Formulate this as a linear programming problem. (ii) Solve i ical method. -;;: * Marks)
- 4. 12MBA25 USN Second Semester MBA Degree Examination, Dec.2013/Jan.20l4 Financial Management Max. Marks:100 Note: 1. Answer any TI{REEfull questionsfrom Q.No.l to 6. 2. Q.No.7 and Q.No.8 ure compulsory. 3. Use of time value tubles is permitted. Time: 3 hrs. " d o o , 1 a. b. o E o F Mention any three factors influencing capital data: Sales (100000 units) -:n =a .r! .= : ' 2,00,000 an Yo oE -.(l) o> ?a a= (03 Marks) (07 Marks) From the following:inf,ormation you are required to estimate the net working capital: Cost per unit (') 400 Raw materials ,, 150 Direct labor Overhead (excluding deprbciation) 300 850 Additio nal information: Selling price : ' 1000 per unit Output: 52000 unit P.A. Raw materials stock: Average 4 weeks Work-in-progress : Average 2 weeks ,r3i [Assume 50% completion stage with full material consumption] : Average 4 weeks Finished goods in stock Credit allowed to debtors : Average 4 weeks Credit allowed to cieditors: Average 8 weeks /ir oO a0i ,G E(! -ol OE sor Assume that production is sustained at an even pace during the 52 weeks of the year. sales are on credit basis. State any other assumption you might have lrads while . i.e 9i; ll All ,?fillllfl;, t<) l,r= €i !o 5.e a >'h :, Variable cost per unit: '0.70 Interest chargei: ' 15000 Fixedcost:-65000 c. ' Calculate operating leverage, financial leverage and composite leverage from the following oX =: structure. ..... bo -- a- What are the 3 functions of financial management? (03 Marks) o= b. Explain the factors affecting dividend policy of an organization. (07 Marks) c. Consider the cash flows of the following investment decision and rank them on net present ethod. value. Profitabilit index oayback period and accountins rate of return met Cs Cr Cz C: C,{ Investment Co 20000 7000 6000 6000 5000 4000 A 20000 5000 6000 7000 7000 8000 B (10 Marks) The required rate of return is 10%. EO! 90 =6 F> =o ;L (r< - o o Z c.l o E 1 of3
- 5. 12MBA25 3 a. of '400 P.A and fixed operating cost of '5,00,000 per yeal. Show how EBIT would change if the firm sells 1000 units and A firm sells products for ' 1000 P.A. It has variable costs 2000 units. (03 Marks) b. Write a brief note on the Indian financial system, its institutions and markets. (07 Marks) c. An investor hold the following portfolio Aloha Reta 0.6 Beta Investment '300000 1.0 Share 80000 120000 1 ...,'. 1.2 Carrot onthis portfolio, if the risk free is'6% and the expected Wh[i is the expected rate of return ,, , (10 Marks) return on rnarket portfolio rs l5Yo? 4a. What is Red piospective and Green shoe option, b. Explain in brief the,types of Hybrid c. i) ii) iii) 5a. b. o*".]ir_^ ...,,. ,, " " (03 Marks) (07 Marks) ^^^ .,,o.^.,,. . A bank finance a,c4r purchase up to 2,50,000 at lZYt interest per annum, fot a period of 5 yrs. How much equated monthly installments can be fixed in this case? An executive is about to retire at the age of 60. His employer has offered him two post retirement options. (a) 20,00,000 ' lumpsum (b) 2,50,00O'RS for 10 years. Assuming 10oZ interest, which is a better option. Mr. Raja requires ' 10 lakhs aftei'5 years He considers the following 2 options. (a) To invest a single amouff of l0%o rate (b) TO invest annually at a rate of l}Yo (10 Marks) compounded annually. goW r,nu0h he need to invest in both the cases? (05 Marks) What is working capitalmahagement? Explain opeiating cycle. As a financial analybt,of a large electronics compalr, you are required to determine the weighted average Coit of capital of the company using (a) book value weight (b) market vahie weigtrt, f[e following information is available for youf'pe?sua1. The company's present book value capital structure is 8,00,000 ,,.,. ,,,, Debentures (- 100 per debenture) 2,00.000 100 Per share) Prefttence share ' l0-00-0.00 Equity share (' 10 per share) all these securities are traded in the capital market recent prices are: ' ' Debentures, 1 10 per debenture, Preference shares, 120 per share and equity shares ' ' (' ,., '22 per share. Anticipated external financing opportunities are : (i) - 100 per debenture redeemable at par; 10 year maturity, 110% coupon rate, 4 percett flotation cost, sale Price 100. (ii) ' 100 preference share redeemable at par; 10 year maturity, l2o/o dlrdendrate,5o/o ' flotation costs, sale Price 100. (iii) Equity shares :' 2 per share flotation costs, sale price : 22' '2 per share, In addition, the dividend expected on the equity share at the end of the year is the anticipated growth rate in dividends is 7oh and the firm has the practice of paying all its (15 Marks) earnings in the form of dividends. The corporate tax rate is 35 percent. 2 of3
- 6. I I2MBA25 6a. "Retained earnings is a cost free source of fund". Comment. (05 Marks) b. Bring out the difference between mergers and acquisitions. (05 Marks) U. Define derivatives. Explain the different types of derivatives. (10 Marks) . 7"a. MSR Ltd. is in existence for the past 120 years. Majority of its shareholders are in the age group of 70-80, who are very traditional. The finance manager thinks of giving a higher dividend though his ROCE is greater than its cost of capital. Do you agree with him? Marks) b. ABC Ltd. is planning to invest in a project. The manag_er has used_lhe accounting (PAT) from the projected financial statements and calculated NPV and decided information to go ahead with the investment. But the managing director is not convinced about the (05 Marks) decision. Which other tool(s) would the manager use? Why? RDP Ltd. has taken a loan from ICICI for its capital project. While claiming exemption they have taken the entiro equated annual installment as expense. Is this treatment comect? (05 Marks) Justifu. d. NMS Ltd. is worried about a very high level of operating leverage anL-Epla_1ning to reduce the total leverage to the maximum po ss i b le exte nt. H o w can, h.v i$ffiF.ilo,J.*,,u,, ''.^ 4/ /€, , 8 'r.' 69t{TrtAr- -t.' LTBBA&v Case Study: a 7-, 1s, ". // of an old Ojus Enterprises is determining the cash flow for a project involvi machine by a new machine. The old machine bought a lew years ago haST-Uoot value of 400,000 and.it can be sold to realize a post tax salvage value of '500,000. It has a remaining life of five years after which its net salvage value is expected to be - 160000. It is being depreciated annually at a rate of 25 percent under the written down value method. The working capital required for the old machine is '400"000. The new machine costs 1600000. It is expected to fetch a net,salvage of '800000 after 5 years when it will no longer be required. The depreciation rate applicable to it is 25oh under the written down value method. The net working capital required for the ne.w machine is '500000. The new machine is expected to bring a saving of '300,000 annually in manufacturing costs (other than depreciation). The tax rate applicable to the frm is 40oh. Ouestion: Should the old machine be replaced by the new machine (Assuming cost of capital to be 107o) (20 Marks) ***r<{< 3 of3

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