Business Valuation — DU B.Com. (Hons.) Previous Year Question Papers

Jnique Paper Code . 2413080019 Vame of the Paper : Business Valuation Type of the Paper : DSE Semester VII Instruction for Candidates: 3. All parts of a question to be attempted together. 1. a) Explain the fundamental nature of business valuation as a process. Discuss the core elements that analyze and reconcile, regardless of •the assét being valued. b) "Valuation is not a precise science but a professional judgment exercised within a framework of inherent constraints and subjective variables." Critically analyze this statement. (9) Or a) Valuation principles are foundational axioms that guide the application of methodologies, rather than formulas to be directly computed. Their correct interpretation determines whether a valuation is theoretically fundamentally flawed." b) Explain the purpose of valuation standards in the Indian and international contexts. Discuss the key objectives of Indian Valuation Standards (IVS highlighting any similarities or differences in their aims for promoting consistency, transparency, reliability in valuation practices. 2. a) Explain the three primary approaches to valuation (income, market, and asset-based) with one key model under each. Provide a brief description, formula (where applicable), and a suitable scenario for using each model in business valuation b) Explain the discounted cash flow (DCF) analysis method, including its key formula and steps Naulied in similing the intingic value of a fins. sonie the oprarable trainion me and yas company ) Explain the Dividend Discount Model (DDM) for valuing equity shares, including its underlyin ssumptions and the Gordon Growth Model formula. Describe the Net Asset Value method of share valuatior outlining the steps to compute NAV with adjustments for fair value of assets and liabilities. application and limitations b) Explairi the meaning of goodwill as an intangible asset and describe any two methods (such as average profit method or super profit method) for its valuation, with relevant formulas. (9) Or a) Valuation of micro, small, and medium enterprises (MSMEs): "Discuss the challenges and suitable approaches for valuing micro, small, and medium enterprises (MSMEs) (9) b) Distinguish between the pricing and valuation of futures contracts versus forward ,contracts, highlighting the role of daily mark-to-market settlement (9 ) 4. a) Explain the significance ofnon-financial considerations in business valuations, providing at least four key examples such as employee matters, customer relationships, brand reputation, and personal goodwill. Illustrate how each factor impacts the overall valuation process with a hypothetical business scenario (9) b) Explain the ke strategic plarming roles and functions of top-level management in Human Resource Management, such as policy fomulation, and ensuring organizational welfare. Illustrate with examples of how these managers like CEOs or Board of Directors align HR strategies with overall business goals. (9)