EFN406: MANAGERIAL FINANCE
2014, 3
Assignment: Part A, Financial Mathematics and Security Valuation
General Information
a) Marks: 10 ten questions each worth one mark. You must have the correct answer
EFN406: MANAGERIAL FINANCE
2016, 1
Outline
You should solve the following ten questions showing your full workings and explanations in brief form.
Each question is worth one mark. You must have the co
0 out of 0 points
This online quiz is an individual assessment. Your answers should be your
own work and should not be the result of work done by others.
Selected
Answer:
Answers:
I UNDERSTAND and AG
EFN406: MANAGERIAL FINANCE
Assignment: Part B, Capital Budgeting
2017 1
_
General Information
1. Marks: 10 - You must have the correct answer and a correct explanation to gain the full marks
allocated
Question 2
In an efficient market the purchase of financial assets would represent a zero NPV
project.
True
False
Question 4
The ratio of earnings per share to share price is called the P/E ratio.
Tru
EFN406: MANAGERIAL FINANCE
2014, 2
Assignment: Part A, Financial Mathematics and Security Valuation
General Information
a) Marks: 10 ten questions each worth one mark. You must have the correct answer
EFN406: MANAGERIAL FINANCE
2017, 1
Assignment: Part A, Financial Mathematics and Security Valuation
Solution
Question 1
Now that they have accumulated a deposit of $60,000, Ed and his partner Susie wi
EFN406: MANAGERIAL FINANCE
Assignment: Part B, Capital Budgeting
Solution
2017 1
_
Answer the two problems below (P1 and P2). Five marks each. Part marks will be allocated,
but if you have the incorre
Question 1
0.5 out of 0.5 points
The constant growth formula breaks down when ke < g.
Selected
Answer:
Answers:
Tru
e
Tru
e
False
Question 2
0.5 out of 0.5 points
There is an inverse relationship bet
Question 2
Calculate the cost of preference capital (kp) for a non-redeemable preference share which has the following:
Price = $16 and a Preference dividend of $1.2 paid every six months. Your answer
A debenture is selling for $106.68. It has a maturity of five years, a face value of $100 and a coupon rate of 5.5% pa.
You are being asked to solve for kd, the implied yield. This can be done by calc
Investment
Debt
Equity
3000000
2000000
1000000
kd
ko
9%
13%
Feasibility
Slavage Value
200000
200000
Cash Flow Table
Year
CF
Part (a)
Loan Repayments
0
-3000000
R
1
900,000
2
950,000
3
800,000
b
c
Inte
A new photocopier costs $16 000. This cost will be depreciated prime cost to zero over 5 years. The new photo
The new photocopier would save us $6 000 per year before taxes and operating costs.
An old
PolyCorp is faced with a choice between two machines. The cash flows are below with a cost of capital of 12
would have to be replaced every four year and machine two would have to be replaced every si
Getting Started
WELCOME TO EFN406
Go to EFN406 Blackboard Site
Note the Unit Menu on the Top Left Side
Of course you
should be
looking at the
relevant
semester
The menu items
are essentially
the same,
EFN406: Managerial Finance
Housekeeping
1
9/4/17
YES
We start working
hard straight away
2
9/4/17
Some House Keeping
Blackboard
Assessment
My Grades
Learning Resources
A Note on Excel
Textbook
Student to complete and attach to the assignment:
Student Name:
Qu Yijie
Assignment Number:
Tutors Name:
Due Date: 31 March 2017
Part A
Title:
Assignment Part A
Day and Time of Class:
DECLARATION: By
A debt that is not due in the coming year is classified as a(n):
Selected
Answer:
d.
non-current liability
Answers:
a.
long-term liability
b.
direct liability
c.
current liability
d.
non-current liab
Question 1
0 out of 0 points
This online quiz is an individual assessment. Your answers should be your own
work and should not be the result of work done by others.
Selected
Answer:
I UNDERSTAND and
1
Module Four
Module 4 Investment Evaluation Techniques
Self-Study Questions for Module Four
Question One:
Project Evaluation Techniques
PolyCorp is considering an investment in plant of $1 million. T
Tutorial 04
Tutorial 4 Questions
Some of the questions ask you to construct a spreadsheet and to produce associated graphs.
Spreadsheet solutions are provided on Blackboard, but remember spreadsheets
Polycorp buys goods on terms 2/10, n/30, what is the nominal annual interest rate implic
Given
Discount Date
Nett Date
Discount %
Invoice Amount
Solution
m
d
Nominal Rate
10
30
2
100
20
2
0.3724
37.24
Workshop One
Financial Maths and Valuation
Question One: Credit Terms
Polycorp buys goods on terms 2/10, n/30, what is the nominal annual interest rate implicit in the
terms offered?
Solution One
d
36
EFN406 Managerial Finance Tutorial 05
Tutorial 5 Questions
TASKS:
1. BF, page 160, Questions 1 to 8, 13 and 14.
2. BF, page 164, Problems 13 and 19.
3. Given below are the cash flows for two mutually
Interest earned on the reinvestment of previous interest payments is known as:
Selected
Answer:
both compound interest and interest
on interest
Answers:
simple interest
both compound interest and int
Question 1
0.5 out of 0.5 points
In Australia the rate for the diminishing value method is _ of the prime
cost for assets acquired after 10 May 2006.
Selected
Answer:
200 percent
Answers:
125 percent
Question 1
0.5 out of 0.5 points
Which of the following is not an example of unsystematic risk?
Selected
Answer:
Changes in the level of interest rates.
Answers:
The development of a new product line
Important Formulas
Opportunity Cost of Missing Discount (nominal)
r
d
365
x
(100 d ) t
Opportunity Cost of Missing Discount (effective)
d
r 1
100 d
365
t
1
Price of a Bank Bill (and specifically a
MODULE 3
Important Formulas
Present Value of a Perpetuity
P
D
ke
D1
ke
P0
Present Value of Constant Growth
P0
D1
ke g
Present Value of a fixed Interest Security
PV
In
FVn
I1
I2
.
2
n
(1 i ) (1 .
BOOK REVIEWS
Communication
Theory
Mindfulness
Ellen J. Langer
Addison-Wesley
Readlng, MA
1989
xiv 234
Hardcover: $16.30; paper $6.88
yond the lab, both in literature and in
daily life, and thereby to