Business Valuation — DU B.A. (Hons.) Business Economics (BBE) Previous Year Question Papers

Type of the Paper Business Valuation Instruction for Candidates: 3. All parts of a question to be attempted together. 1) a) Explain the need for valuation in business decision-making. Discuss the key issues and problems that arise during the valuation process with suitable examples. (9) b) Distinguish between different types of values such as market value, fair value, investment value, and liquidation value. Explain how they relate to each other. (9) OR a) State and explain the fundamental principles of valuation. How do these principles guide a valuer in practice? b) Compare Indian Valuation Standards with Intemational Valuation Standards. Why harmonization of standards important in a globalized economy? .(9) 2) a) Explain Discounted Cash Flow (DCF) analysis in detail. What are its advantages and limitations in valuing a company? b) Differentiate between comparable transaction method and comparable market multiple method. Illustrate with an example how each is applied. (9) a) What is Free Cash Flow to Equity (FCFE) and Dividend Discount Model (DDM)? Explain the situations where each model is most appropriate. (9) b) Discuss the factors that influence the choice of a valuation technique. How does the nature of the business and availability of data affect this choice? (9) 3) .a) Explain the methods used for valuation of property, plant and equipment. What challenges are faced in valuing tangible assets? (9) b) Describe the valuation approaches for intangibles like goodwill, brand, patents, and software. Why is valuing intangibles more complex than tangibles? (9) OR a) Discuss the valuation process for start-ups and SMEs. How does it differ from valuing large, established enterprises? (9) b) Explain how valuation is conducted during mergers & acquisitions and distress sales. Also, briefly explain the valuation of forward contracts and options pricing. (9) 4) a) How does human resource quality impact business valuation? Explain with examples. (9) b) Discuss the role of top and middle-level management in determining firm value. What risks arise from weak governance? (9) b) Why is environmental accountability becoming a key non-financial factor in valuation? Discuss with reference to recent market trends (9) 5. Write Short Notes on any three of the following: (3X6=18 Marks) (a) Principles of Valuation (b) Models of Valuation (c) Valuation of Micro, Small and Medium Enterprises (e) Top and Middle-Level Management