Business Valuation - Buy Online NMIMS MBA Solved Assignments Winter December 2025

 

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Business Valuation

Dec 2025 Examination

 

 

Q1. Mr. Sharma has Rs.80,000 to invest for 3 years. He is choosing between two short- term offers:

- Instrument A (Bank Fixed Deposit): Quoted 5.2% p.a. nominal, compounded quarterly.

- Instrument B (Company Deposit): Simple interest at 6% p.a. for 3 years.

Calculate the Effective Annual Rate (EAR) and maturity value for Instrument A after 3 years. Also compute the maturity value of the Rs.80,000 invested in Instrument B after 3 years. Comment which instrument gives a higher maturity amount for Mr. Sharma and why? (10 Marks)

 

 

Q2(A). ABC Pvt. Ltd., a family-owned business, is considering (a) selling part of the promoters’ stake to raise funds, (b) acquiring a small competitor, and (c) managing a shareholder’s exit. In which of these situations would a company valuation be necessary, and why is it important for each case? (5 Marks)

 

 

Q2 (B). LMN Ltd. reported the following financial information for the year ending March 2024: Revenue of Rs.10,00,000, Cost of Goods Sold of Rs.6,50,000, Operating Expenses of Rs.2,00,000, and Interest & Taxes of Rs.50,000. Calculate Gross Profit Margin Net Profit Margin. Briefly interpret the results. (5 Marks)

 

Dear students, get fully solved assignments by professionals

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