ACF108 Extra Exercises 5
Section 1: MCQs
1). The coupon rate of a bond equals:
A. its yield to maturity.
B. a percentage of its face value.
C. the maturity value.
D. a percentage of its price.
2). Periodic receipts of interest by the bondholder are known
ACF108 Extra Exercises Week 3
Section 1: MCQs
1. What is the market price of a share of stock for a firm with 100,000 shares
outstanding, a book value of equity of $3,000,000, and a market/book ratio of 3.0?
A. $8.57
B. $30.00
C. $90.00
D. $105.00
2. What
The Suggested Answers to ACF108 Extra Exercises 4
Section 1: MCQs
1. C
FV = PV + (PV r t)
($10,000) + [($10,000 .06) 5] = $13,000.00
2. B
$1000.00 (1.07)2 = $1,144.90 after 2 years
$1,144.90 .07 = $80.14
3. C
The investment will again pay $100 plus intere
ACF108 Extra Exercises 4
Section 1: MCQs
1). What is the future value of $10,000 on deposit for 5 years at 6% simple interest?
A. $7,472.58
B. $10,303.62
C. $13,000.00
D. $13,382.26
2). How much interest is earned in just the third year on a $1,000 deposi
ACF108 Extra Exercises Week 2
Section One: MCQs
1). Corporate financing comes ultimately from:
A. savings by households and foreign investors.
B. cash generated from the firm's operations.
C. the financial markets and intermediaries.
D. the issue of share
The Suggested Answers to ACF108 Extra Exercise 3
Section 1: MCQs
1. C
2. D
3. C
4. D
5. B
6. A
7. D
8. D
9. C
10. D
11. A
Section 2: Fill-in-blank-questions
1.
Value added
2.
Profitability
3.
Efficiency
4.
EVA
5.
Working capital
6.
Leverage
7.
Liquidity
8
The Suggested Answers to Extra Exercises 1
Section 1 - MCQs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
D
D
A
A
D
C
C
D
A
A
C
C
A
C
A
C
B
Section 2 Fill in the Blanks
1.
2.
3.
4.
5.
6.
7.
8.
9.
Corporation
Limited
Liability
Separation
Diffe
The Suggested Answer to ACF108 Extra Exercises 5
Section 1: MCQs
1. B
2. C
3. C
4. D
5. D
6. C
7. B
8. C
9. D
10. A
11. C
12. D
Section 2: Fill-in-Blanks Questions
1. Interest
2. Zero-coupon bonds
3. contract
4. Price levels
5. Real interest rate
6. Asked
ACF108 Extra Exercises 6
Section 1: MCQs
1). What dividend yield would be reported in the financial press for a stock that
currently pays a $1 dividend per quarter and the most recent stock price was $40?
A. 2.5%
B. 4.0%
C. 10.0%
D. 15.0%
2). Which of the
Principles of Finance
Problem Set 2: Solutions
Investment Decision Criteria
Q.1:
The present value of the 10-year stream of cash inflows is (using the annuity tables)
170,000 * 5.216 = 886,720.
Thus:
Q.2:
NPV = - 800,000 + 886,720 = + 86,720
To find the
Corporate Finance
Assignment 1
1. Suppose there are no capital market imperfections. A parcel of land costs $500, 000. For
an additional $800, 000 you can build a motel on the property. The land and the motel
should be worth $1, 500, 000 next year. Suppos
Principles of Finance
Problem Set 1
Time Value of Money
Nikos Nomikos
Q.1: What is the present value of an annuity of 100, receivable annually at the year end, for
each of the next 15 years? The interest rate is 10% pa.
Q.2: You would like to have enough
Assignment 1
Answers
1.
$1, 500, 000
= +$63, 636
1.10
Since the NPV is positive, you would construct the motel. Alternatively, we can compute
the rate of return as follows:
N P V = $1, 300, 000 +
r=
$1, 500, 000
1 = 0.1539 = 15.39%
$1, 300, 000
Since the
MSc Energy, Trade and Finance
Invigilated Exam
22 January 2015
Oil & Energy Transportation & Logistics
Time allowed: 2 hours and 30 min
Notes:
1- This exam paper consists of 6 questions, all of which should be answered
2- Attach the VCF sheet of question
MSc Shipping Trade & Finance
MSc Logistics Trade & Finance
MSc Energy Trade & Finance
SMM557
Full and Part time
Principles of Finance
16 January 2013
?.? ?.?
Candidates should answer ALL questions in PART A (Multiple Choice)
Each question carries 2.5 mark
PRINCIPLES OF FINANCE
ACADEMIC YEAR 2010/11
SAMPLE SORT SOLUTIONS
PART A: MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C
A
A
B
B
B
A
C
B
D
PART B
QUESTION 11
(a)
The value of the contract is $20 million.
(b)
Annual deposits of 6,406.07
(c)
(i) The NPV i
PRINCIPLES OF FINANCE
ACADEMIC YEAR 2012/13
SAMPLE SHORT SOLUTIONS
PART A: MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C
A
B
C
C
C
C
A
B
B
PART B:
QUESTION 11
(a)
The present value of the salary is 1,610,450.62.
(b)
He will be able to repay in 13.72 we
leSession 1:
The Life Cycle of a Field:
12345-
Exploration
Appraisal
Development
Production
Abandonment
* Phase 1: Identify & Quantify Resource & Value Potential
1- acquire acreage
2- analyze the acreage
3- Rationalize acreage portfolio
* Drill
* Phase 2:
The University for business
and the professions
CASS Business School
MSc Shipping Trade & Finance
MSc Logistics Trade & Finance
MSc Energy Trade & Finance
SMM557
Principles of Finance
Full and Part time
xxth January 2011
?.? ?.?
Candidates should answer A
Lecture 6
Due Diligence
What Can & What Does Go Wrong
There are so many ways to lose, but so few ways to win.
Perhaps the best way to achieve victory is to master all
the rules for disaster, and then concentrate on avoiding
them.
Victor Niederhoffer The E
Lecture 5
Hedge Fund Data
Availability, Biases & Statistical
Properties.
There are three kinds of lies: lies, damned lies, and statistics
Mark Twain
1
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
Hedge Fund Data
Issues
Reporting of perform
Lecture 4
Analysis of hedge fund performance,
performance metrics & factor models.
+
Incorporating Hedge Funds into a Traditional
Portfolio.
1
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
Hedge Fund Performance
Absolute Versus Relative Retu
Lecture 3
Hedge Fund Strategies
(cont.)
"I don't think there are that many pure anomalies that can
occur. - Potential Investor
"As long as there continue to be stupid people like you,
we'll make money. - Myron Scholes
LTCM sales pitch
1
Hedge Fund Electiv
Lecture 2
Hedge Fund Strategies
Never invest in an idea you cant illustrate with a crayon
Peter Lynch
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
1
Some Market Perspective
Inflation
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,00
Financial Reporting
Lecture 9 - Exercise P&S
Consolidated financial statements
1.
At January X1, P subscribed 140,400 shares with 1 par value of company S paying
160,000 for the investment. At the acquisition date shareholders funds of S were as
follows (
Financial Reporting
Lecture 9 - Exercise P&S
Consolidated financial statements
X1, P subscribed 140,400 shares with 1 par value of compan
the investment. At the acquisition date shareholders funds o
):
Share capital (156,000 shares, par value 1)
Reserves
Financial Reporting
Lecture 9 - Exercise Gold
Currency translation of foreign operations and consolidation
SOLUTION
1 Translation of financial statements of foreign operation
Balance sheet at 30 June X3
Paris
000
Exchange
rate
Paris
000
Assets
Non-current
Financial Reporting
Lecture 9 - Exercise Pasque
Equity method
At the start of X1, Pasque company purchases 25% of Norinsk company for 37,500. At the
acquisition date, Norinsk shows the following balance sheet:
()
Assets
Assets
Equity
230,000
Share capital