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.
Using diagram describe non-diversifiable and diversifiable risk.
2.
Homework 3
This week, students whose surnames start with the letters A-H should hand in the
following set (Homework Week12 set 1) of exercises to the tutors.
(due in week 12 during usual tutorial time.)
Homework week12 set 1
Question 1.
Does following the
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 the same line of business.
ii)
A vertical merger involves
SAMPLE FINAL EXAMINATION
Unit Name:
Corporate Financial Management
Unit Number:
200488
Time Allowed:
3 hours including 10 minutes reading time.
Number of Questions:
5 (Parts), all of which are to be answered.
Lecturer's Name:
John Ablett
(Solutions at Bac
CFM NOTES
EXPECTED RETURN & RISK:
Risk is the probability of earning a return less than the expected return.
Return is the financial outcome of an investment.
n
Expected return=E(R)= Ri Pi R1P1 R2P2 R3P3 . Rn Pn
i 1
n
Variance= = Ri E (R ) Pi
2
2
i 1
R1
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 of each year for the next ten years.
If the rate
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: Consider the formula for the
ASSESSMENT 2: REPORT
CHOSEN COMPANY: Virgin Australia Holdings Ltd
a) Collect the market price index (All Ordinaries), Share price for a company (as per
instructions given in page 2) and display the data for two sub-periods separately in a
table.
(2 marks
Corporate Financial Management
TUTORIAL WEEK 8
(Capital Budgeting and Basic Cash Management)
For detail IRR calculation, please lecture note.
1.
Calculate the NPV of the following net cash flows if the cost of capital is 10% per
annum. Also calculate the
Corporate Financial Management
TUTORIAL WEEK 6
1.
Text book (GJF) question 6-25 (page 294): Basic bond valuation
Complex System has an outstanding issue of $1000 per-value bonds with a 12%
coupon interest rate. The issue pays interest annually and has 16
Corporate Financial Management
TUTORIAL WEEK 10
(Capital Budgeting and Basic Cash Management)
For detail IRR calculation, please lecture note.
1.
The Noslan Plumbing Company is considering expanding its operations by
purchasing a truck specially outfitted
Corporate Financial Management
TUTORIAL WEEK 7
Q1:
If the dividends yield for year one is expected to be 5% based on the current price of
$25, what will the year four dividend be if dividends grow at a constant 6%?
Answer1:
D1 5% of $25=0.05 25=1.25
D 4 D
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 corresponds to the b in the
security market line (SML) of the capita
Corporate Financial Management
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 proceed, i.e. help should be given in
such
Corporate Financial Management
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 proceed, i.e. help should be given in
such
200488 CORPORATE FINANCIAL MANAGEMENT
WEEK 4
THE CAPITAL ASSET PRICING MODEL (CAPM)
Q. What return is required to compensate for a given
amount of risk?
(As we have noted previously, the only relevant risk is
systematic risk, so risk here means systematic
200488 CORPORATE FINANCIAL MANAGEMENT
WEEK 6
INTRODUCTION TO CAPITAL BUDGETING
Chapter 8 and 9
Questions to be considered:
What are the relevant cash flows in capital budgeting?
What are conventional and non-conventional projects?
What is meant by the pay
200488 CORPORATE FINANCIAL MANAGEMENT
WEEK 7
CAPITAL BUDGETING CONTINUED
BASIC CASH MANAGEMENT
Questions to be considered:
What is the annualized net present value (ANPV)
method of project evaluation?
What is meant by sensitivity analysis and simulati
Final examination (a note):
1. Date of the final exam: 3 November (please check your exam timetable), 2016 at
8:30am for 3 hours. Students are advised to check their own timetable and room
number.
2. Students are advised to cover week 3 to 14 lecture mate
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 14
(i.e. answers due in week commencing 25 May 2015)
Read text chapter 26, then do the following:
Chapter 26
RQ6 (NOTE: this question involves a LEAP YEAR)
Net profit aft
200109 Corporate Accounting Systems
Homework Questions for Tutorial in Teaching Week 14
(i.e. answers due in week commencing 25 May 2015)
Read text chapter 26, then do the following:
Chapter 26
RQ6, RQ7, RQ10, RQ12, and the three SQ questions below
SQ26.1
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 9
(i.e. answers due in week commencing 20 April 2015)
Read text chapter 29, then do the following:
Chapter 29
RQ4
We adjust NCIs share of the subsidiarys profit in the cu
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 2
(i.e. answers due in week commencing 2 March 2015)
[NOTE: Questions from the Textbook chapters are referred to as either RQ = Review Questions or
CQ = Challenging Quest
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 10
(i.e. answers due in week commencing 27 April 2015)
Review text chapters 27 to 29, then do the following:
Chapter 28
CQ13 [NOTE: Only prepare the consolidation journal
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 3
(i.e. answers due in week commencing 9 March 2015)
Read the second half of text chapter 18 (from pg 640) and then do the following:
Chapter 18
RQ7
If an entity has gene
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 6
(i.e. answers due in week commencing 30 March 2015)
Read text chapter 28, then do the following:
Chapter 28
RQ5
There would be no effect on the amount of goodwill recog
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 4
(i.e. answers due in week commencing 16 March 2015)
Read the text chapter 27 (to pg 893) and section 27.10 on pages 902-904, then do the following:
Chapter 27
RQ13
When
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 12
(i.e. answers due in week commencing 11 May 2015)
Read text chapter 19, then do the following:
Chapter 19
RQ2
Operating
(a) Dividends received*
(c) Interest paid
(f) B
200109 Corporate Accounting Systems
Homework Solutions for Tutorial in Teaching Week 13
(i.e. answers due in week commencing 18 May 2015)
Read text chapters 24 and 25, then do the following:
Chapter 24
RQ1
The benefits (advantages) of providing segmental
200109 Corporate Accounting Systems
Homework Questions for Tutorial in Teaching Week 2
[NOTE: Questions from the Textbook chapters are referred to as either RQ = Review Questions or
CQ = Challenging Questions. Further questions not in the textbook are sho