MU - S2 2003 - Mid Semester Business Finance Exam Solutions

MU - S2 2003 - Mid Semester Business Finance Exam Solutions...

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Page 1 of 5 MONASH UNIVERSITY DEPARTMENT OF ACCOUNTING AND FINANCE AFC2140 BUSINESS FINANCE MID-SEMESTER TEST SECOND SEMESTER 2003 SURNAME (FAMILY NAME)_____________________________________________ GIVEN NAME(S)______________________________________________________ FACULTY AND YEAR__________________________________________________ ID NUMBER__________________________________________________________ TUTOR’S NAME______________________________________________________ TUTORIAL DAY AND TIME______________________________________________ INSTRUCTIONS: TIME ALLOWED: 60 MINUTES WRITING TIME (NIL READING TIME) CALCULATOR WITH NON-ALPHABETIC KEYBOARD ONLY MAY BE USED CLOSED BOOK TEST ANSWER ALL FOUR QUESTIONS (AND IN THE SPACES PROVIDED) A FORMULA SHEET IS INCLUDED AT THE BACK (WHICH CAN BE DETACHED) OFFICE USE ONLY QUESTION MARK 1 2 3 4 TOTAL (OUT OF 60) %
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Page 2 of 5 Question 1 This question consists of nine multiple choice questions. For each multiple choice question, choose the one correct answer from the four alternatives given by clearly circling the correct letter A, B, C, or D. Each multiple choice question carries 3 marks (giving a total of 27 marks for Question 1). The following abbreviations are used in the multiple choice questions: NPV Net Present Value IRR Internal Rate of Return 1. The managers of a firm can maximise shareholder wealth by: B. Accepting all independent investment projects with NPVs greater than their outlay C. Accepting all independent investment projects with NPVs greater than the present value of their future net cash inflows D. Doing all of the above
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MU - S2 2003 - Mid Semester Business Finance Exam Solutions...

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