AFIN858
By Ivy
Week 3 TVM
1. You want to buy an apartment priced at $300,000. You have saved a deposit of $30,000.
The bank has agreed to lend you the $270,000 as a fully amortising loan with a term o
Week 3 CQ's:
5.1a What do we mean by the future value of an investment?
FV refers to the amount of money an investment will grow to over some length of time at some given
interest rate. In other words
AFIN858Financial
ManagementandPolicy
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Sunday, 24 August 2014, 5:31 PM
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Ms. One invests $10,000 today in a managed fund. She expects to earn 8 per cent,
compounded annually, on her money for the next 26 years.
AFIN858
By Ivy
Week 5
1. You are considering two mutually exclusive projects with the following cash flows. Will
your choice between the two projects differ if the required rate of return is 8% rather
AFIN858
By Ivy
Week 3 TVM
1. You want to buy an apartment priced at $300,000. You have saved a deposit of $30,000.
The bank has agreed to lend you the $270,000 as a fully amortising loan with a term o
Question 1
Correct
Mark 1 out of 1
Flag question
Question text
The One Cafe has an operating cash flow of $78,460, a depreciation expense of
$8,960, and taxes paid of $21,590. What is the amount of th
Question 1
Martha receives $100 on the first of each month. Stewart
receives $100 on the last day of each month. Both Martha and
Stewart will receive payments for five years. At an 8 percent
discount
Question 1
The Bell Weather Co. is a new firm in a rapidly growing industry.
The company is planning on increasing its annual dividend by
15% a year for the next four years and then decreasing the
gro
Question 1
Market efficiency says:
Select one:
A. prices may not reflect underlying value.
B. a good financial manager can time stock sales.
C. managers may profitably speculate in foreign currency.
D
AFIN858
By Ivy
Week 7 Risk and return I
1. Select the most correct statement from the following. 'Chartists', also known as 'technical
traders', believe that:
A. markets are weak-form efficient.
B. ma
AFIN858
By Ivy
Week 8 Risk and return II
1. Using the following information and assuming all the bank shares are trading at the same
price, determine which of the following arrangement will reduce the
AFIN858 2017
Week 2 Q&Ps - Suggested Answers and Solutions
CHAPTER 3
6
Short-term solvency ratios
Current ratio for 200X
= (600 + 1950 + 3135)/(1500 +2271) = 1.51 times
Current ratio for 200X+1 = (150
AFIN858 2017
Week 4 Q&Ps - Suggested Answers and
Solutions
CHAPTER 6
1
a It is an inverse relationship.
b The longer the time to maturity, the greater the change in bond values for a given
change in i
0
2008
Sale Price
Units
Sale Revenue
Cost
of Goods Sold
per
unit
Total cost of Good
Sold
Gross Profit
Less: Cannibalization
Premium Product
units(50%)
Basic Product units
Total Cannibalization
Adversi
AFIN858
By Ivy
Week 10 Cost of Capital
1. Should a project be accepted if it offers an annual after-tax cash flow of $1,250,000
indefinitely, costs $10 million, is riskier than the firm's average proj
AFIN858
By Ivy
Week 4 bonds and shares
1. The Lory Company had net earnings of $127,000 this past year. Dividends of $38,100 were
paid. The company's equity was $1,587,500. If Lory has 100,000 shares
AFIN858
By Ivy
Week 1-2
1. Lofty Lights had a 3% profit margin and a 35% dividend payout ratio. The total asset
turnover is 1.25 and the equity multiplier is 1.30. What is the sustainable growth rate?
AFIN858
By Ivy
Week 6 Capital budgeting II
1. Net working capital:
A. can be ignored in project analysis because any expenditure is normally recouped by the
end of the project.
B. requirements general
AFIN858
By Ivy
Week 5 Capital budgeting I
1. You are considering two mutually exclusive projects with the following cash flows. Will
your choice between the two projects differ if the required rate of
AFIN858 2017
Week 2 Q&Ps Suggested Answers and Solutions - Supplement
Q&P 4.17
The EFN could also be worked out as the increase in total assets less the addition to retained
earnings or in formula not
AFIN858 S1 2017
Class Test Information1
Description:
Class Test is an individual 'closed-book' assessment task held during in-class time,
at your timetabled class venue, under invigilated and time-lim
AFIN858 2017
Week 5 Slides 7-49 & 7-50
Slide 7-49 Comprehensive Problem 1 Suggested Answers
Payback period = 4 years.
The project does not pay back on a discounted basis.
NPV = $2 758.72; reject the p
AFIN858 S2 2017
Final Examination Information
The MQU Assessments Policy, Schedule 4 Final Examination Requirements (effective
from S2 2016) states the rules and procedures for examinations including
AFIN858 2017
Final Examination Review Questions & Problems
Topic: Risk and Return - Security Market Line
Suggested Workings and Answers
Problem 1
Page 1 of 3
Problem 2
Page 2 of 3
Problem 3
a.
x = 0.0
AFIN858 2017
Final Examination Review Questions & Problems
Topic: Financial Statements and Long-Term Financial Planning
Suggested Workings and Answers
Problem 1
Page 1 of 2
As a check, notice that cas