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

MONASH UNIVERSITY LIBRARY
i IN M “NH iii“ ll
004089499
OFFICE USE orig
- was I
Monash University
Semester Two Examinations 2001
Faculty of Business and Economics
Department of Accounting and Finance
EXAM CODES: AFF9250
TITLE OF PAPER: FINANCIAL MANAGEMENT

BFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 03 (TEACHING WEEK THREE)
FINANCIAL MATHEMATICS II
IMPORTANT: You are required to attempt all tutorial questions on your own prior to attending class.
Question One
Assume that it is presently July 1, 2009, and you

OFFICE USE ONLY
Monash University
Semester One Examination 2014
Faculty of Business and Economics
Department of Banking and Finance
EXAM CODES:
BFF2341
TITLE OF PAPER:
INTERNATIONAL FINANCIAL MANAGEMENT
EXAM DURATION:
3 hours
READING TIME:

WEEK 2 Tutorial Questions: Financial Mathematics
1.
Differentiate between simple and compound interest. What is the difference between the
holding period yield and yield to maturity?
Annuity and Time Value of Money
2.
Find the future value of the followin

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 -

Teaching Week 2
FINANCIAL MATHEMATICS
Part II
Readings:
Chapters 5 & 6
1
Learning Objectives
Evaluate perpetuities.
Distinguish and evaluate different types of annuities.
Applications of Time Value.
2
Perpetuities
3
Perpetuity
A perpetual cash flow st

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 -

BFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 11 (TEACHING WEEK ELEVEN)
COST OF CAPITAL
IMPORTANT: You are required to attempt all tutorial questions on your own prior to attending
class.
Question One
Suppose Massey Ltd has just issued a dividend of $1.56 per

OFFICE USE ONLY
Monash University
Semester Two Examination 2012
Faculty of Business and Economics
Department of Accounting and Finance
EXAM CODES:
AFF2631
TITLE OF PAPER:
FINANCIAL MANAGEMENT
EXAM DURATION:
3 hours
READING TIME:
10 minutes
THIS PAPER IS F

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 04 (TEACHING WEEK FOUR)
CAPITAL BUDGETING I
IMPORTANT: You are required to attempt all tutorial questions on your own prior to attending class.
QUESTION ONE
Taylor Made Inc. is considering two mutually exclusive p

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)
($100,000)
1
60,

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 06 (TEACHING WEEK SIX)
VALUATION OF BONDS AND SHARES
IMPORTANT: You are required to attempt all tutorial questions on your own prior to attending class.
Question One
Several years ago Pies in the Skies Ltd issued

BFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 02 (TEACHING WEEK TWO)
FINANCIAL MATHEMATICS I
IMPORTANT: You are required to attempt all tutorial questions on your own prior to attending class.
Question 1.
Find the missing values in the following table.
Presen

BFF2631
Financial Management
Lecture 9 Market Efficiency
Topic Overview
Notion of an efficient capital market
Different levels of efficiency
Role of information
Prominent anomalies
Fama-French-Carhart Model
Role and the importance of Behavioural Finance
V

BFF2631
Teaching Week 12
Dividend Policy
Readings:
Chapter 17
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 alter

BFF3121: TUTORIAL 12 - PROBLEM 7 : CALCULATIONS USING EXCEL SOFTWARE*
* On behalf of BFF3121 teaching team, unit leader thanks Ms Alpana Trivedi for preparing this spread sheet.
STOCK
A
B
C
D
E
F
G
H
I
J
K
L
M
Year 1
SHARES
PRICE
100000
45.25
225000
25.38

CFA Standards of Practice Handbook:
http:/www.cfainstitute.org/learning/products/publications/ccb/Pages/ccb.v2010.n2.1.aspx#
End-of-Reading Problems and Solutions are all there.
Problem 12
The mosaic theory holds that an analyst (circle the correct answer

BFF3121 INVESTMENTS AND PORTFOLO MANAGEMENT
Teaching Week 12, Lecture 12
12A Fund Management in Practice
12B Overview of the Unit and Perspective on Final
Examination
Copyright NOT FOR RESALE. All materials produced for this course of study are
reproduced

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

AFF2631
FINANCIAL MANAGEMENT
TUTORIAL SET 12 SOLUTIONS
CAPITAL STRUCTURE
Question 1
Stating any necessary assumptions, discuss the implications of the propositions I, II and III of
MM (1958).
1958 Assumptions
Homogeneous Expectations
Homogeneous Business

Teaching Week 4
Capital Budgeting II
The Application of
Project Evaluation Methods
Readings:
Chapter 11
1
Learning Objectives
Explain why incremental after-tax cash flows are relevant in
evaluating a project, and be able to calculate them for
independent

Teaching Week 5
BFF2631
Valuation of Bonds and
Shares
Readings:
Chapters 8 & 9
1
Learning Objectives
Bond concepts and interest rate risk.
Valuation of bonds.
Valuation of shares (cash flow model):
Zero growth cash flow model (constant dividend)
Constant

BFF2631
Teaching Week 6
RISK AND RETURN
Readings:
Chapter 7
1
Learning Objectives
Understand how risk and return are defined & measured.
Understand the importance of covariance between returns on assets in
determining the risk of a portfolio.
Understan

BFF2631
Teaching Week 8
PORTFOLIO THEORY
AND THE CAPM
Readings:
Chapter 7
Learning Objectives
Explain the distinction between systematic and unsystematic risk.
Explain why systematic risk is important to investors
Explain the concept of efficient portf

BFF2631
Teaching Week 10
COST OF CAPITAL
Readings:
Chapter 13
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 cap