Tutorial 1
Question 1 NPV and IRR
Diggers plc is considering the viability of a contract to supply tractors to a new customer for a
5 year period. The company accountant provides you with the followin
Lecture 7
ANSWER SLIDES
Capital Structure 1
FCF (2016/17) ANSWER SLIDES
31
7.1 MM Propositions (Ex. Q7.1)
Total Value of firm = Shares + Debt = 24 + 14 = 38
With no taxes
=
+
+
+
Where =
Feedback on CFFS January 2015 Exam
SCHOOL of ECONOMICS, FINANCE and MANAGEMENT
EXAM FEEDBACK
(INCLUDING ILLUSTRATIVE ANSWERS
FOR NUMERICAL SECTIONS)
Corporate Finance and Financial Statements
January
UNIVERSITY OF BRISTOL
Examination for the Degree of M.Sc. in
Finance and Investment
January 2016
LINKING CODE: ECON-M17 & 234
EXAM PAPER NUMBER ECONM2034J
CORPORATE FINANCE AND FINANCIAL STATEMENTS
(M
FUNDAMENTALS OF CORPORATE FINANCE
GUIDE FOR EXAM PREPARATION FOR 2016/17 COURSE
EXAM FORMAT
This module is 100% assessed by means of a 3-hour examination in January 2017. You will
be required to answe
Feedback on CFFS January 2016 Exam
SCHOOL of ECONOMICS, FINANCE and MANAGEMENT
EXAM FEEDBACK
(INCLUDING ILLUSTRATIVE ANSWERS
FOR NUMERICAL SECTIONS)
Corporate Finance and Financial Statements
January
Feedback on Corporate Finance and Financial Statement Exam (January 2014)
SCHOOL of ECONOMICS, FINANCE and MANAGEMENT
EXAM FEEDBACK
(INCLUDING ILLUSTRATIVE ANSWERS FOR NUMERICAL SECTIONS)
Corporate Fi
UNIVERSITY OF BRISTOL
Examination for the Degree of M.Sc. in
Finance and Investment
January 2015
LINKING CODE: ECON-M17 & 234
EXAM PAPER NUMBER ECONM2034J
CORPORATE FINANCE AND FINANCIAL STATEMENTS
(M
Fundamentals of Corporate Finance
Revision Lecture
Dr Fangming Xu
University of Bristol
December 12, 2016
Dr Fangming Xu (University of Bristol)
Fundamentals of Corporate Finance
December 12, 2016
1 /
Problem Set 1 Answer Key
Corporate Finance
Question 1 [Cash flow calculation and capital budgeting (without uncertainty)]
a) Calculate the depreciation expenses for each year.
500
50
Question 3
3. Duration calculations
A bond with 4 years to maturity has an annual coupon rate of 5% and face value
$1000.Couponsarepaidsemi-annually.Assumethattheyieldcurveisflatandyields
areat9%.
(a)
Lecture 4
Risk and Cost of Capital
Fundamentals of Corporate Finance (2016/17)
76
Learning objectives
Risk of equity capital & beta
Business risk and financial risk
Adjusting betas for leverage
Determ
Lecture 8
Capital Structure 2
Fundamentals of Corporate Finance (2016/17)
186
Learning objectives
Why different capital structures may suit different firms under the
trade-off theory
Capital structu
Exercise Lecture 4
Question 1 Capital structure
Granby Biotech has no debt financing and an asset beta of 0.7. Assume a risk free rate of 5%
and that the CAPM holds and the expected return on the mark
Solutions to Exercise Lecture 1
Question 1 Discount rates and loans
(a)
First, we calculate the outstanding balance of the mortgage. There are 25 12 = 300 months
remaining on the loan, so the timeline
Exercise Lecture 3
Question 1 WACC
Greystoke plc is a geared company. Its directors have asked you to estimate the weighted
average cost of capital (WACC) of the company and have provided you with the
EXERCISE LECTURE &
TUTORIAL QUESTIONS
1
Exercise Lecture 1
Question 1 Discount rates and loans
The mortgage on your house is five years old. It required monthly payments of 1,402, had an
original term
Exercise Lecture 2
Question 1 NPV and sensitivity analysis
Hardy Ltd is considering whether to set up a division to make a new product, the Tess. A
feasibility study recently undertaken (but not yet p
Solutions to Exercise Lecture 2
Question 1 - NPV and sensitivity analysis
(a)
Only incremental costs are included in analysis. Sunk costs are therefore ignored.
Variable cash flows per unit
Selling pr
NOTES, EXAMPLES AND
QUESTIONS TO ACCOMPANY
CLASSES
12
Lecture 1 The Objective in Decision Making
1.1 Maximizing Stock Prices: The Best-Case Scenario
There is a scenario in which managers can concentra
Lecture 6
Payout Policy
Fundamentals of Corporate Finance (2016/17)
134
Learning objectives
Dividends - background information
MM dividend irrelevancy proposition
Dividends versus share issues
Div
Lecture 5
Weighted Average Cost of Capital (WACC) &
Adjusted Present Value (APV)
Fundamentals of Corporate Finance (2016/17)
105
Learning objectives
WACC and APV Introduction
Financing assumptions
Mor
Lecture 2
ANSWER SLIDES
Investment Mathematics &
Net Present Value
FCF (2016/17) ANSWER SLIDES
2
2.1 Return, present value and future value
A project is currently worth 100 and in one years time it wi