Additional questions from week 2-8
Corporate Financial Management
TUTORIAL WEEK 10
(Note: the answers given below are guideline only. Student will not get full mark for the
answers given for all theoretical questions. This is applicable for all week)
1.
U

Expected Return and Risk
Corporate Financial Management
TUTORIAL WEEK 4
1. Under what condition will the population standard deviation of the return to a 2asset portfolio be the weighted average of the two assets standard deviations of
returns? (Hint: Con

The Capital Asset Pricing Model, Bond and Share Valuation
Corporate Financial Management
Tutorial Week 5
1. Consider the following table that provides information on the standard deviation of
returns and the beta of two shares A and B. The beta correspond

Capital Budgeting continued (NPV, IRR etc.)
Corporate Financial Management
TUTORIAL WEEK 7
1.
Calculate the NPV of the following net cash flows if the cost of capital is 10% per
annum. Also calculate the payback period (assuming cash inflows occur evenly

Time Value of Money (Annuity, Annuity Due etc.)
Corporate Financial Management
Tutorial Week 3:
Exercises to be done in Class:
(Be sure to draw timelines when explaining time value of money problems)
1.
An individual is to receive $400 a year at the end o

Cost of Capital (Ch-11)
Corporate Financial Management
TUTORIAL WEEK 8
(Note: the answers given below are guideline only. Student will not get full mark for the
answers given for all theoretical questions. This is applicable for all week)
1.
Why do we use

Capital Budgeting
Corporate Financial Management
TUTORIAL WEEK 6
1.
GJF, Review Question 8-4 (p. 347)
Differentiate between each of the following sets of capital budgeting terms:
(a)
Independent versus mutually exclusive projects.
(b)
Unlimited funds vers

Leverage and Capital Structure
Corporate Financial Management
TUTORIAL WEEK 13
(Note: the answers given below are guideline only. Student will not get full mark for the
answers given for all theoretical questions. This is applicable for all week)
1.
GJF,

Time Value of Money
Corporate Financial Management
Tutorial Week 2:
Exercises to be done in Class:
It is expected that students will need some prompting to get to the solutions. Tutors should
avoid wasting time if students have no idea as to how to procee

Mergers and acquisitions
Corporate Financial Management
TUTORIAL WEEK 14
1.
Briefly describe the following types of mergers: i) horizontal, ii) vertical, iii) congeneric
and iv) conglomerate.
Answer:
i)
A horizontal merger is the merger of two firms in th