2. Financial Managment Model Exam or Assignment.docx -...

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Individual Assignment for MBA Department on the Course of FINANCIAL MANAGMENT MODEL EXAM /ASSIGNMENT P ART I: M ULTIPLE CHOICES (1 point each) Instruction: Read the following questions and choose the right answer from the given alternatives and write the letter of your choice on the space provided _____ 1.The goal of the firm from financial management point of view is: A.To maximize its profit for each yearB.To maximize the wealth of shareholdersC.To satisfy customers profitablyD.To maximize growth in capital _____ 2.the concept that states: “there is goal conflict among managers and owners of corporate firms” is _____ 3.Which one is not a correct match? _____ 4.Meta Company has a Br 1000 par value bond with12% coupon rate of interest outstanding. The bond has 10 years remaining to its maturity date. If interest is paid semi-annually and the required rate of return is 10%, which one of the following statement is correct? _____ 5.If a bond with a par value of Br.6,000 and coupon rate of 8% is traded in the market at a price of Br 5,600. What is the yield to maturity (YTM) at which this price is paid to hold until maturity? A.Between 8% and 9%B.Between 9% and 10%C.Between 10% and 11%D.None of the above _____ 6.A share of perpetual preferred stock pays an annual dividend of $39 per share continuously. If investors require a 12% rate of return, what should be the price of this preferred stock? Given the information below answer question # 7 to 8MAM Company’s Common Stock currently has earning of Br 720 per share and pays an annual dividend of Br 480 per share. The required return on the common stock is 12%._____ 7.If dividends are expected to grow at constant rate of 5% to infinity, present value (price) of the stock is:

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