Tutorial 6
PQ29.2
With the purchase method, the assets of the combined firm will be the book value of Firm X, the
acquiring company, plus the market value of Firm Y, the target company, so:
Assets fro
FIN 322 Tutorial Solutions Week 3
Chapter 7
Questions and Problems
17. a. The basecase NPV is:
NPV = $1,350,000 + $315,000(PVIFA16%,10)
NPV = $172,466.66
b.
We would abandon the project if the cash f
Tutorial 3
CP14.10
a) If the market is not weak form efficient, then this information could be acted on and
a profit earned from following the price trend. Under (2), (3), and (4), this
information is
FIN 322 Tutorial Solutions Week 4
Chapter 11
Questions and Problems
8. a. To find the expected return of the portfolio, we need to find the return of the
portfolio in each state of the economy. This p
Tutorial 5
Concept Questions
21.4.
Comment on the following remarks:
a.
Leasing reduces risk and can reduce a firm's cost of capital.
Leasing is a form of secured borrowing. It reduces a firms cost of
Advance Corporate Finance Weekly Practice Questions (Solution Set)
Week 01: Chapter 5, 6 & 7
1. The possibility that more than one discount rate will make the NPV of an investment equal
to zero is cal
Solutions to Tutorial week 2:
CQ5.4; QP5.12; QP5.16; QP6.10; QP6.14; QP6.18
Note: You might see small differences for some solutions, it is because Im
using excel spread sheet and PVIFA formula to do
2. Which one of the following statements concerning net present value (NPV) is correct?
A. An investment should be accepted if, and only if, the NPV is exactly equal to zero.
B. An investment should b
FIN 322 Tutorial Solutions Week 6
Chapter 16
Questions and Problems
EBIT and Leverage Money, Inc., has no debt outstanding and a total market value of $275,000.
Earnings before interest and taxes, EBI
Advance Corporate Finance Weekly Practice Questions (Solution Set)
Week 03: Chapter 13, 14 & 16
1. The weighted average of the firm's costs of equity, preferred stock, and after tax debt is
the:
A. re
Advance Corporate Finance Weekly Practice Questions (Solution Set)
Week 02: Chapter 10, 11 & 12
1. The average compound return earned per year over a multiyear period is called the _
average return.
Introduction
In this report, the companies that have been chosen to analyse are CB Industrial
Product Holding Bhd, DKLS Industries Bhd, AWC Bhd, Esthetics International
Group Bhd and Lion Forest Indus
Fin 322 Group assignment semester JUL 2017 (25%)
Maximum of 5 students form one group . The group is required to identify 2
companies listed in Bursa Malaysia that are either making losses or having
a
FIN322 Lecture 4
Capital Structure
Lecture 4 Capital Structure
Basic concepts
A few important points that are relevant to our discussion:
Shareholders are the owners of a firm
Managers are agents
Collinearity
Collinearity occurs when two predictor variables (e.g., x1 and x2) in a
multiple regression have a nonzero correlation. Multicollinearity occurs
when more than two predictor variables (e
Introduction
In this report, the companies that we have been chosen to analysis are Apollo Food Holdings
Bhd and Hwa Tai Industries Bhd. This report will analyse the Z score of these companies in
five
Based on the data of Hwa Tai Industries BHD, it can be seen that the Zscore is
fluctuating from year 2011 to year 2015. In year 2011 to year 2013, the Z Score has
increased sharply from 1.0547 to 1.9
Based on the data of Hwa Tai Industries BHD, it can be seen that the Zscore is fluctuating from year 2011 to year 2015. In year 2011, Hwa Tai
Industries BHD has the lowest Zscore which is only 1.0546
Introduction
In this report, the companies that we have been chosen to analysis are
Apollo Food Holdings Bhd and Hwa Tai Industries Bhd. This report will
analyse the Z score of these companies in five
Chapter 16 Balanced scorecard
 Quality as a competitive tool
 Bringing a quality focus to the BSC
 Costs of quality
 Techniques for identifying and analysing quality problems
 Time as a competiti
Chapter 2 an introduction to cost terms and inventory costing
Required for exam:

a cost object and distinguish between direct costs and indirect costs, variable costs
and fixed costs
calculate incom
SAVING FOR COLLEGE
INTEREST RATES
ON POSITIVE BALANCE
ON NEGATIVE BALANCE
ANNUAL DEPOSIT
ANNUAL COLLEGE FEES
8%
10%
4000
20000
BALANCE
BEFORE
DEPOSIT/WITHD DEPOSIT/
BIRTHDAY RAWAL
WITHDRAWAL TOTAL
10
LECTURE 1: CAPITAL BUDGETING
Process of deciding whether to undertake an investment
FINANCIAL CONCEPTS DISCUSSED
NPVPAYBACK METHOD, DISCOUNTED PAYBACK METHOD, PROFITABILITY INDEX
IRR
PROJECT RANKING
Additional exercises on Lease
Question 1
a.
b.
The return of a project depends on the risk of the project. Since the lease payments are
affected by the riskiness of the lessee, the lessee's cost of de
Chapter 7
Q3
Investors hold diversified portfolios in order to reduce risk, that is, to lower the
variance of the portfolio, which is considered a measure of risk of the portfolio. A
diversified portf
Final Exam Revision
ADVANCE CORPORATE FINANCE
Disclaimers
The attached slides are based on the
revision notes provided by Dr Pan
These slides have been reproduced here by
courtesy of one of your stude
Additional exercises on M&M theory
Question 1
a.
EBITall equit y =
RB =
$30,000
12%
Under Plan A
Debt =
$49,500
Interest payment = $49,500 x 12%
=
$5,940
NI (net income) =
$24,060
No. of shares
=
3,30
Other additional exercises
Question 1
We can use the BlackScholes model to value the equity of a firm.
S
E
r
T
=
=
=
=
=
ln( S / E ) + (r + 0.5 2 )T
d1 =
T
d1
d
$54,400 ( use asset value as the stoc