Investment Banking and Financial Services — DU Bachelor of Management Studies Previous Year Question Papers

maintenance expenses will be paid by the company. If the company purchases the machine, the cost of the machine is 73,00,000. The company can borrow this amount at 12% interest and repay the loan in 5 equal annual instalments. The machine will be depreciated on a straight-line basis with no salvage value. Advise the company whether it should lease the machine or purchase it. Also examine the decision if lease payments are made at the end of the year and if they are paid in advance. (b) What are the pros and cons of taking factoring services from any factor? How Factoring is different from Forfaiting? (6 marks) (b) What is securitization? Explain its process and the role of different parties involved in a securitization transaction. (9 marks) (b) Analyze the legal and ethical significance of a prospectus and the consequences of misstatements for directors and promoters. (9 marks) Write Short notes on (Any three of the following) (6x3) 1. Right Issue ii. Operating Lease Features ili. Merger Theories iv. Investment Banking Functions v. Promoter's Contribution