Corporate and business Finance Test with Answers

 Corporate Financial Test with Answers Composition

SECTION A - BRIEF ANSWER QUESTIONS

Total for Section A – 20 signifies

(4 queries x a few marks each)

ANSWER ALL QUESTIONS

DISCUSS COMPLETELY THE QUALITY OF EACH IN THE FOLLOWING CLAIMS.

1 . " Agency complications arise in the event that managers produce decisions that benefit themselves at the expenditure of the business's shareholders. ”

2 .

" If the current stock price were greater than P 0

Div you + P 1

(1 + 3rd there�s r e )

we would anticipate investors to rush in and buy that, driving in the stock's value. ”

Company Finance

=

Page a couple of of twelve

3.

some.

Corporate Fund

Page a few of twelve

SECTION N – CALCULATIONS QUESTIONS

Total for Section B – 20 marks

ANSWER ALL QUESTIONS AND SHOW ALL WORKINGS

Question 1

Business Finance

(Total: 10 marks)

Page some of 10

Corporate Fund

Page a few of twelve

Corporate Financial

Page 6th of twelve

Question a couple of

Corporate Financial

(Total: 10 marks)

Site 7 of 10

Company Finance

Page 8 of 10

Company Finance

Site 9 of 10

FORMULAE SHEET

T

NPV sama dengan ∑

t =0

FV = P(1 + r )

capital t

T

PHOTOVOLTAIC =

(1 + ur )t

capital t =0

ri =

1 − (1 + l ) 

PV sama dengan C 

r

+C

1 − (1 + rd )

B = C

rd

−t

F

+

capital t

 (1 + rd )

F

(1 + re )t

P0 =

Div

re

i actually

t

a couple of

2 a couple of

2 a couple of

σ p = x Aσ A + by Bσ N + a couple of x A x B cov(rA, rB )

(

)

~ ~

cov(R, R )

~ ~

= corr (R, R ) =

σ σ

~ ~

where cov R A, RB sama dengan ρ A, Bσ Aσ B

and ∴ ρ A, M

A

A

B

B

A

M

ri = r farreneheit + (rm − 3rd there�s r f ) β i

ri rm

cov(~, ~ ) σ i, meters ρ my spouse and i, mσ iσ m ρ i, mσ i

in which β i =

= 2 sama dengan

=

σm

σ 2m

σ meters

σ 2m

r −r 

rp = rf +  m n  σ p

 σm 

RS sama dengan R0 +

B

( R0 − RB )

S

VL = ASSISTE A + TC B

N

S

+ rd ⋅ (1 − τ c ) ⋅

S+B

S+B

or

Divt

Div1

re − g

2

big t

rWACC sama dengan re ⋅

(1 & rd )t

P0 =

∑ ( r − r ) Pr( 3rd there�s r )

we =1

m

1 & APR  − one particular

EAR = 

m 

capital t =1

n

rp = ∑ xi ri = x A rA & x B rB

capital t

C1   one particular + g  

 

PV sama dengan

1 − 

3rd there�s r − g   (1 & r )  

 

P0 sama dengan ∑

to

n

C

r

C

PV = 1

r−g

PV =

t

t =1

 (1 + ur )t − 1

FV = C 

 (1 + r )

r

B=

=0

(1 + IRR )t

and

σi =

− capital t −1

NCFATt

t =1

−t

1 − (1 + ur )

PHOTOVOLTAIC = C 

ur

to

∑ l Pr( l )

 (1 & r ) − 1

FV sama dengan C 

r

t

(1 + l )

s

NPV sama dengan ∑

N

NCFATt

intended for re > g

rWACC = lso are ⋅

W

S

& rd ⋅ (1 − τ c ) ⋅

V

Versus