Name: ID No:
Allocated Tutors name:
AFF2631 FINANCIAL MANAGEMENT
MID SEMESTER TEST PAPER TEST ONE
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of three sections printed on a total of eleven (11) pages. Answer all questions.
Section A -

Name: ID No:
Allocated Tutors name:
AFF2631 FINANCIAL MANAGEMENT
2013 MID SEMESTER TEST PAPER TEST TWO
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of two sections printed on a total of ten (10) pages. Answer all questions.
Section A -

AFF2631 Financial Management
FORMULA SHEET
Financial Mathematics
Capital Budgeting
1+k = (1+Pe)(1+r)
Annuity due value = Ordinary annuity
value (1+i)
Valuation of Stocks and Bonds
Interpolation Formula
= A1/(A1 A2)
i = i1 + (i2 i1)
Page 1 of 6
AFF2631 Fi

Name: ID No:
Allocated Tutors name:
AFF2631 FINANCIAL MANAGEMENT
2013 MID SEMESTER TEST PAPER TEST ONE
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of two sections printed on a total of ten (10) pages. Answer all questions.
Section A -

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 05 (TEACHING WEEK FIVE)
CAPITAL BUDGETING II
QUESTION ONE
Billy was asked to choose between the following mutually exclusive projects:
Expected Net Cash Flows
Year
Project S
Project L
0
($100,000)

Name: ID No:
Allocated Tutors name:
AFF2631 FINANCIAL MANAGEMENT
MID SEMESTER TEST PAPER TEST TWO
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of three sections printed on a total of eleven (11) pages. Answer all questions.
Section A -

Name: ID No:
Tutor:. Tute: Day. Time .
AFF2631 FINANCIAL MANAGEMENT
MID SEMESTER TEST PAPER TEST TWO
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of three sections printed on a total of ten (10) pages. Answer all questions.
Section A -

BFF2631 FINANCIAL MANAGEMENT
Formula Sheet
Financial Mathematics
FVn PV(1 i) n
PV FVn /(1 i) n
i m
EAR 1 1
m
i
FVn PV 1
m
PV
Valuation of Shares and Bonds
PB
Pps
m
n
P0
FVn
m
n
i
1
m
1
1
n
1 i
C
i
Fn
n
1 i
D1
k ps
D 1 g
D1
0
R g
R g
Capital

Name: ID No:
Allocated Tutors name:
AFF2631 FINANCIAL MANAGEMENT
MID SEMESTER TEST PAPER TEST ONE
Total 100 Marks
Time: 1 hour and 30 minutes
This paper consists of three sections printed on a total of eleven (11) pages. Answer all questions.
Section A -

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 3 SOLUTIONS
FINANCIAL MATHEMATICS II
Question One
It is presently July 1, 2013, and you need to raise $10,000 by July 1, 2018. You
can invest money in your bank to earn an 8% return compounded annually.

Teaching Week 12
DividendPolicy
Readings:
Chapter17
Learning Objectives
Understand what dividends are
How they are paid
How companies decide on making
dividend payments
Whether (and when) investors might care
about dividends + what are alternatives.
How d

Question One
AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 04 - SOLUTIONS
CAPITAL BUDGETING I
Taylor Made Ltd is considering two mutually exclusive projects. The projects expected
net cash flows are provided in the table below.
YEAR
PROJECT

BFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 3 SOLUTIONS
FINANCIAL MATHEMATICS II
Question One
It is presently July 1, 2009, and you need to raise $10,000 by July 1, 2014. You
can invest money in your bank to earn an 8% return compounded annually.
(a)
If you

Risk and Return lecture notes
Learning Objectives
Teaching Week 6
Define risk and return and explain how they are measured and calculate returns,
variance and standard deviation
Explain the importance of covariance between returns on assets in determin

Capital Budgeting Part 1 Lecture notes
Learning Objectives
Teaching Week 4
Explain why incremental after-tax cash flows are relevant in evaluating a
project, and be able to calculate them for independent and mutually exclusive
projects.
Discuss the five

TeachingWeek10
EFFICIENTMAR
KET
HYPOTHESIS
1
LearningObjectives
nUnderstandtheconceptofmarket
efficiency.
nDistinguish
between different
levels (forms) of efficiency that
relate to different sets of
information reflected in 2security
Efficient Market Hypo

Lecture Notes Cost of Capital Week 11
Learning Objectives
Teaching Week 9
Understand the term cost of capital.
Determine the cost of debt and equity.
COST OF CAPITAL
Readings:
Chapter 12
Find the weighted average cost of capital.
Understand the pitfal

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 07 - SOLUTIONS
RISK AND RETURN
Question One
a) Total risk can be decomposed into systematic risk and unsystematic risk. Explain each
component of risk, and how each is affected by increasing the number of securiti

Teaching Week 9
COST OF CAPITAL
Readings:
Chapter 12
Learning Objectives
Understand the term cost of capital.
Determine the cost of debt and equity.
Find the weighted average cost of capital.
Understand the pitfalls of the overall cost of capital and
how

Teaching Week 8
PORTFOLIO THEORY
AND THE CAPM
Readings:
Chapter 11
Learning Objectives
n
Explain the distinction between systematic and unsystematic risk.
n
Explain why systematic risk is important to investors
n
Explain the concept of efficient portfolio

CAPM and Portfolio Theory Notes
Learning Objectives
Teaching Week 8
Explain the distinction between systematic and unsystematic risk.
PORTFOLIO THEORY
AND THE CAPM
Readings:
Chapter 11
Explain why systematic risk is important to investors
Explain the c

Week 3 Lecture Notes
Teaching Week 5
How to Value Bonds and Shares
Learning Objectives
Readings:
Chapters 8&9
Valuation of bonds.
Bond concepts and interest rate risks.
Valuation of shares.
1
2
Definition and Features of a Bond
Valuation of Bonds and

2013/5/11
Teaching Week 10
Learning Objectives
EFFICIENT MARKET
HYPOTHESIS
Understand the concept of market efficiency.
Distinguish between different levels (forms)
of efficiency that relate to different sets of
information reflected in security prices.
R

Learning Objectives
PART I
AFF2631
Financial Management
INSTITUTIONAL UNDERSTANDING
Understand some institutional features of dividends and
share repurchases.
Lecture 12 Dividend Policy
[2013 Semester 2]
Understand the tax implications of dividends.
Be fa

Learning Objectives
MM Propositions I, II & III
AFF2631
Financial Management
The benefits and costs of using debt (leverage) with Tax
The risk effect of higher leverage
Lecture 11 Capital Structure
[2013 Semester 2]
Theories of capital structure relating

BFF2631
Financial management
Exam Review
Semester 1, 2015
Review of the unit
Topics
Financial maths (PV, FV, annuity, perpetuity etc.),
valuation of shares and bonds, project NPV
Project evaluation and capital budgeting
Market efficiency and behaviour

BFF2631 Financial management
Teaching Week 3
Capital Budgeting I
Alternative Decision Rules
Readings:
Chapter 10
1
Learning Objectives
Explain the importance of Capital Budgeting
Differentiate between independent & mutually exclusive
projects.
Differen

Formula Sheet
Financial Mathematics
FVn PV(1 i) n
Valuation of Shares and Bonds
PB
PV FVn /(1 i) n
Fn
C
1
1
i 1 i n 1 i n
Pps
P0
i
EAR 1
m
D1
k ps
D 1 g
D1
0
R g
R g
m
1
n
i m
FVn PV 1
m
PV
FVn
mn
i
1 m
Capital Budgeting
n
CFt
t
t0 (1 k)
NPV