Research School of Finance, Actuarial Studies and Statistics
PRACTICE FINAL EXAMINATION
Semester X - End of Semester, 20XX
FINM2001 Corporate Finance
Examination/Writing Time Duration:
Reading Time:
180 minutes
15 minutes
Exam Conditions:
Central Examinat

Question: Pre-money and post-money valuations
i
You founded your own firm two years ago. You initially contributed $100,000 of your money and in E
return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to E
angel

FINM2001 Corporate Finance
Capital Structure 1: Additional Practice Questions
Problem 1
Rosie Co and Robert Inc both specialise in the manufacturing of dog toys. The two firms operate in a
perfect capital market and their assets and cash flows are identic

FINM 2001 Corporate Finance Final Exam, Semester 2 2014
THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND APPLIED
STATISTICS
FINM2001
CORPORATE FINANCE
FINAL EXAMINATION
SEMESTER 2, 2014
Study Period: 10 minutes
Writing

FINM 2001 Corporate Finance Mid-Semester Exam, Semester 2 2014
THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND
APPLIED STATISTICS
FINM2001
CORPORATE FINANCE
MID-SEMESTER EXAMINATION
SEMESTER 2, 2014
Study Period: 10 mi

FINM 2001 Corporate Finance Final Exam, Semester 1 2015
THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND APPLIED
STATISTICS
FINM2001
CORPORATE FINANCE
FINAL EXAMINATION
SEMESTER 1, 2015
Study Period: 10 minutes
Writing

SECTION B FREE FORMAT QUESTIONS (60 marks)
Q1. Alex and Kate wish to borrow $80,000, to be repaid over a period of 20 years by
monthly instalments. The interest rate (nominal) is 14.7 % p.a. The first payment is due
at the end of the first month.
(a) Calc

FINM 2001 Corporate Finance Final Exam, Semester 2 2015
THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND APPLIED
STATISTICS
FINM2001
CORPORATE FINANCE
FINAL EXAMINATION
SEMESTER 2, 2015
Study Period: 10 minutes
Writing

THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND APPLIED
STATISTICS
FINM2001
CORPORATE FINANCE
FINAL EXAMINATION
SEMESTER 2, 2014
Study Period: 10 minutes
Writing period: 3 hours
Permitted materials:
Non-programmable ca

FINM 2001 Corporate Finance Mid-Semester Exam, Semester 2 2015
THE AUSTRALIAN NATIONAL UNIVERSITY
RESEARCH SCHOOL OF FINANCE, ACTUARIAL STUDIES AND
APPLIED STATISTICS
FINM2001
CORPORATE FINANCE
MID-SEMESTER EXAMINATION
SEMESTER 2, 2015
Study Period: 10 mi

Corporate Finance 1
cfw_FlNMZ001
Quiz 1a
Stride Ltd, producers of high quality running shoes, have invented a new insole that
maximises shock and impact absorption, and need to purchase a machine, Comfort~X, to
manufacture the insoles. The management have

Corporate Finance
(FINM2001)
Quiz 2a
Name: _
Student Number: _
Tutorial Day/Time: _
Evil Corp is in the process of selling shares of stock in an auction IPO. At the end of the
bidding period, Evil's underwriter has received the following bids:
Price ($)
$

Research School of Finance, Actuarial Studies and Statistics
EXAMINATION
Semester 2 Mid-Semester, 2016
FINM2001 Corporate Finance
Examination/Writing Time Duration:
Reading Time:
90 minutes
15 minutes
Exam Conditions:
Central Examination
Students must ret

Corporate Finance (FINM
2001)
Tutorial Seven Solutions
Question One
Problem 15.1, pg. 534.
Pelamed Pharmaceuticals has EBIT of $325 million in 2006. In addition, Pelamed has
interest expenses of $125 million and a corporate tax rate of 40%.
a.
What is Pel

Corporate Finance (FINM2001)
Tutorial Eight Solutions
Question One
Problem 16.1, pg. 575.
Gladstone Corporation is about to launch a new product. Depending on the success of
the new product, Gladstone may have one of four values next year: $150 million, $

Corporate Finance (FINM2001)
Tutorial Four Solutions
Question One
Problem 25.1, pg. 882.
Suppose an H1200 supercomputer has a cost of $200,000 and will have a residual
market value of $60,000 in five years. The risk-free interest rate is 5% APR with month

Corporate Finance (FINM2001)
Tutorial One - Solutions
Question One
Problem 4.19, pg. 168.
What is the present value of $4000 paid at the end of each of the next 73 years if the
interest rate is 3% per year?
Solution:
Timeline:
0
1
2
3
73
4,000
4,000
4,000

Corporate Finance (FINM2001)
Tutorial Three - Solutions
Question One
Problem 8.1, pg. 298.
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its
pizza that will be low in cholesterol and contain no trans fats. The fir

Corporate Finance (FINM2001)
Tutorial Two - Solutions
Question One
Problem 7.2, pg. 264.
You are considering investing in a start-up company. The founder asked you for
$290,000 today and you expect to get $1,070,000 in eight years. Given the riskiness of

Tutorial Four - Solutions
Question One
Assuming competitive prices, which of the following is true?
i.
If Stock A has a higher beta than Stock B, then the expected return of Stock
A is higher than the expected return of Stock B.
Assets with negative betas

Week 4 Workshop Question
(2014 S2 Mid-Semester Exam question)
ABC Pty Ltd is currently operating a car renting business. Due to rising petrol prices in recent
years, it is considering the replacement of 10 Ford Falcon with 10 new Honda Civic. Each Ford
Fa

by Roger G. fhhotsort and
joey L. Sindefor: Yale Wieersity. and
. ill-"OFFERINGS joy R. Rider; University ofMt'ehigsm‘
i ._ _ privately held firm or suooessful venture thereis still no persuasive.widelyacoepted.artdtest-
. ospital project raises capital a

Week 11 Workshop Question
(2014 Semester 2 Final Exam Q4) As the CEO of Greymare Bus Lines, you understand the
growing demand for transportation between Sydney and nearby townships. The company has
owned a total of five buses, and you now consider buying

Corporate finance lectures
Lecture 1
Business structures:
- Sole proprietorship: business owned by one person
o Advantages:
Control of business rests with owner
Easy and not expensive to form and dissolve
Not treated as separate entity for tax purposes

Applied Corporate Finance
Quiz 5
SATC, DUFE 2016
1. Suppose the market portfolio has an expected return of 8%, and a volatility of
20%, while Starks stock has a volatility of 18% and the risk free rate is 2%. What
would have to be true for Starks equity c

Applied Corporate Finance
Quiz 4
SATC, DUFE 2016
1. The HNH Corporation will pay a constant dividend of $5 per share, per year, in
perpetuity. Assume all investors pay a 20% tax on dividends and that there is no
capital gains tax. Suppose that other inves

Applied Corporate Finance
Quiz 3
SATC, DUFE 2016
1. Palmed Pharmaceuticals has EBIT of $380 million in 2006. In addition, Palmed
interest expenses of $130 million and a corporate tax rate of 40%. What is
Palmeds 2006 net income?
a.
b.
c.
d.
e.
120 million

Corporate Finance (FINM2001)
Tutorial Five Solutions
Question One
Problem 25.1, pg. 882.
Suppose an H1200 supercomputer has a cost of $200,000 and will have a residual
market value of $60,000 in five years. The risk-free interest rate is 5% APR with
month

Corporate Finance (FINM2001)
Tutorial Seven Questions
Question One
Problem 15.1, pg. 534.
Pelamed Pharmaceuticals has EBIT of $325 million in 2006. In addition, Pelamed has
interest expenses of $125 million and a corporate tax rate of 40%.
a) What is Pela

Lecture week 12
Analysis of Takeovers
1
Learning Objectives
Evaluate suggested reasons for takeovers.
Explain how to estimate the gains and costs of takeovers.
Explain the main differences between cash and shareexchange takeovers.
Outline defense strategi

Formulas
Present value annuity C A( n, i )
Future value annuity
C
1
1
i (1 i ) n
C
[(1 i) n 1]
i
Present value annuity due =
PC
C
1
1
i (1 i )n 1
Effective annual rate =
m
j
1 1
m
Bond price P =
NPV =
T
C
1
FV
1
t
i (1 i ) (1 i )T
CFt
(1 k )
t 1

Week 10
Ch. 12
Q1
What are the potential advantages and disadvantages to a companys
shareholders if the company increases the proportion of debt in its capital
structure?
Q2
Distinguish between business risk, financial risk and default risk.
Q3
a) Outline

Week 3
Ch. 3
Q2
Distinguish between simple interest and compound interest.
Q6
Given a required rate of return, a set of cash inflows can be valued as at any
date, and the later is the valuation date the higher the value. Is this true?
Why, or why not?
Q7