CORPORATE FINANCE 1 MOCK MIDTERM
Section A (Answer ALL questions. Report the correct answer in the answers sheet provided)
1. The following are all properties of the NPV rule, except
a) NPVs are additive
b) Intermediate cash flows are invested at the hurd
BSc (Econ) Examination by course unit
Wednesday 9th May 2012
ECN371
14:30-16:30
Corporate Finance 1
Duration: 2 hours
YOU ARE NOT PERMITTED TO READ THE CONTENTS OF THIS QUESTION PAPER UNTIL
INSTRUCTED TO DO SO BY AN INVIGILATOR.
Answer ALL questions from
Corporate Finance 1 Mock Midterm
1. The following are all properties of the NPV rule, except
a) NPVs are additive
b) Intermediate cash flows are invested at the hurdle rate
c) NPV calculations do not allow for interest rate shifts
d) NPV calculations allo
Corporate Finance 1 Problem Set 6- Solutions
Dia cAssume that the Wilshire 5000 currently has a dividend yield of 2% and that on
average, the dividends of Wilshire 5000 firms have increased by about 7% per year.
If the risk-free interest rate is 4%, what
BSc (Econ) Examination
ECN371 Corporate Finance 1
Date: ?-May-2011. Time: 10:00
Duration: 2 hours
You are not permitted to start reading this question paper
until instructed to do so by an invigilator
Complete all rough workings in the answer book(s) and
ECN371 Corporate Finance 1
Lecture 10: Mergers and Acquisitions
Dr Paola Paiardini
Queen Mary, University of London
20122013
Lecture 10 (2012/2013)
Corporate Finance 1
1 / 33
Readings for Lecture 10
Berk and DeMarzo:
Chapter 28: Mergers and Acquisitions
L
ECN371 Corporate Finance 1
Lecture 9: Real Options
Dr Paola Paiardini
Queen Mary, University of London
20122013
Lecture 9 (2012/2013)
Corporate Finance 1
1 / 15
Readings for Lecture 9
Berk and DeMarzo:
Chapter 22: Real Options
Lecture 9 (2012/2013)
Corpor
ECN371 Corporate Finance 1
Lecture 8: Capital Budgeting and Valuation with
Leverage
Dr Paola Paiardini
Queen Mary, University of London
20122013
Lecture 8 (2012/2013)
Corporate Finance 1
1 / 22
Readings for Lecture 8
Berk and DeMarzo:
Chapter 18: Capital
Corporate Finance I - ECN371
Academic Year 2012/2013
1. General Information
Course structure: 2 hours lecture on Friday 12:00-14:00, Laws 2.10; 1 hour class per week
Lecturer: Dr. Paola Paiardini
Contact details: p.paiardini@qmul.ac.uk
Office: W416
Office
Mid-term exam structure
Please read carefully these guidelines for the mid-term exam.
If something is not clear or you have any doubts please contact me.
VENUE AND DATE:
Friday 14th December 12:00
The venue will be confirmed in the next weeks.
STRUCTURE O
Text
Dr Thomai Filippeli
Lecture 8
chapter 9
The Dividend Discount Model
Applying the Dividend Discount Model
Total Payout and Free Cash Flow
Valuation Models
Valuation Based on Comparable Firms
Information, Competition, and Stock Prices
A One-Year Invest
chapter 6 page 169
Dr Thomai Filippeli
Lecture 7
1.
Bond Cash Flows, Prices and Yields
2.
Dynamic Behavior of Bond Prices
3.
The Yield Curve and Bond Arbitrage
4.
Corporate Bonds
5.
Sovereign Bonds
Bond Terminology
Bond Certificate
States the terms of th
Quantitative Finance
Lecture: Portfolio Theory
Dr. Le Trung Thanh
Vietnamese German University
January 2016
Introduction to Portfolio Theory
Investment in Two Risky Assets
= simple return on asset A
= simple return on asset B
0 = initial wealth
Assumpti
Quantitative Finance
Lecture: Statistical Analysis of an Ecient Portfolio, Beta
Measure, Single Index Model, CAPM Model
Dr. Le Trung Thanh
Vietnamese German University
January 2016
Portfolio Theory with No Short Sales
2 of 151
Ecient Portfolios without Sh
Quantitative Finance
Lecture: Descriptive Statistics, Constant Expected Return
Model, Hypothesis Testing in the CER Model, The Bootstrap,
The Maximum Likelihood Estimation
Dr. Le Trung Thanh
Vietnamese German University
January 2016
Descriptive Statistics
Quantitative Finance
Lecture: Introduction Lecture and Review of Probability,
Statistics
Dr. Le Trung Thanh
Vietnamese German University
January 2016
The Time Value of Money
Future Value
$ invested for years at simple interest rate per year
Compounding
Quantitative Finance
Lecture: Time Series Concepts
Dr. Le Trung Thanh
Vietnamese German University
January 2016
Time Series Processes
Stochastic (Random) Process
cfw_ 1 2 +1 = cfw_
=
sequence of random variables indexed by time
Observed time series of le
Dr Thomai Filippeli
chapter 10
Lecture 5
Theft versus Earthquake Insurance
Risk of these two hazards is similar (1% chance
that the home will be robbed or damaged)
Risks of the individual policies are similar
But are the risks of the portfolios of policie
ECN371 Corporate Finance 1
Lecture 6: Beta Estimation and the Cost of Capital
Dr Paola Paiardini
Queen Mary, University of London
20122013
Lecture 6 (2012/2013)
Corporate Finance 1
1 / 21
Readings for Lecture 6
Berk and DeMarzo:
Chapter 12: Estimating the
CorporateFinance1ProblemSet3Solution
Q1TheDuPontSystemhelpstheanalystseehowthefirm'sdecisionsandactivitiesoverthe
course of an accounting period interact to produce an overall return to the firm's
shareholders. By reviewing the relationships of a series o
Q1
Del Monte Foods
Common Size Balance Sheet
April 29 and 30,
ASSETS
Current Assets
Cash and cash equivalents
Restricted cash
Trade accounts receivable, net of allowance
Inventories
Prepaid expenses and other current assets
Total Current Assets
Property,
Corporate Finance 1
Problem Set 1- Sketch Answers
1. First, the corporation pays taxes. It earned $7.50 per share, but must pay
0.35 $7.50 = $2.63 to the government in corporate taxes.
That leaves $4.87 to distribute. However, you must pay
0.20 $4.87 = $0
Corporate Finance 1 Problem Set 9
1. Suppose that the Widgeon Company must choose between two technologies
for the manufacture of a new product, a Wankel-engined outboard motor:
a) Technology A uses custom-designed machinery to produce the
complex shapes
Corporate Finance 1 Problem Set 8
1. Hot Rocks Corp. has issued long-term bonds with a market value of $50
million and an expected return of 9%. It has 4 million shares outstanding
trading for $10 each. At this price the shares offer an expected return of