Net Present Value and Question - 5593 Words

SEAT NUMBER: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦ ROOM: .†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. FAMILY NAME.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.....†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. This question paper must be returned. Candidates are not permitted to remove any part of it from the examination room. OTHER NAMES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.. STUDENT NUMBER†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. SESSION 2 EXAMINATIONS NOVEMBER 2012 Unit Code and Name: AFIN252, Applied Financial Analysis and Management Time Allowed: 3 hours plus 10 minutes reading time. Total Number of Questions: 50 Multiple Choice Questions plus 8 full response questions. Instructions: 1. PART A (30 marks): There are 50 multiple choice questions. Answers to these must be recorded on a red-coloured General Purpose Answer Sheet which will be marked by a computer. Please make sure your name is on this sheet. 2.†¦show more content†¦Question 6 Coolibah Holdings Limited is expected to pay dividends of $1.13 every six months for the next three years. If the current price of Coolibah stock is $22.40, and Coolibah s equity cost of capital is 16%, what price would you expect Coolibah s shares to sell for at the end of three years? A) $26.74 B) $28.82 C) $29.36 D) $31.36 E) $34.96 4(41) Question 7 Ascension Limited will pay a dividend of $1.80 per share one year from today and a dividend of $2.40 per share two years from today. It is expected that Ascension s share price will be $44 per share immediately after the second dividend payment. If Ascension has an equity cost of capital of 8%, what is the maximum price that a prudent investor would be willing to pay for an Ascension Limited share today? A) $39.27 B) $40.22 C) $41.45 D) $42.40 Question 8 Which of the following statements is FALSE? A) As firms mature, their earnings exceed their investment needs and they begin to pay dividends. B) Total return equals earnings multiplied by the dividend payout rate. C) Cutting the firm s dividend to increase investment will raise the share price if, and only if, the new investments have a positive net present value (NPV). D) We cannot use the constant dividend growth model to value the shares of a firm with rapid or changing growth. 5(41) Question 9 Bandicoot Enterprises just announced that it plans to cut its dividend (in one yearShow MoreRelatedCaladonia Products Integrative Problem1382 Words   |  6 Pagesseveral mutually exclusive projects (Keown, Martin, Perry, Scott, 2005). The lack of experience on the assistants part has also lead to the CEO requesting not only that the assistant provide a recommendation but also to respond to a number of questions aimed at judging the assistants understanding of the capital budgeting process (Keown, Martin, Perry, Scott, 2005). Financial Assistants Assignment The financial assistant received the important assignment by memorandum from the CEORead MoreCase02 Piedmont1133 Words   |  5 Pagesthis question. The answers for this question assume a useful life of 5 years. Using a discount rate of 8 percent, the net present value of all benefits is $1,732,836.16; the net present value of all costs is $1,640,384.79; the overall net present value is $92,451.36, and the project breaks even in approximately 3.84 years. Using a 10 percent discount rate, the net present value of all benefits is $1,645,201.46; the net present value of all costs is $1,576,173.19; the overall net present value is $69Read MoreNet Present Value and Net Cash Flow1220 Words   |  5 PagesCHAPTER 26 NAME 10-MINUTE QUIZ A SECTION #___________________ Indicate the best answer for each question in the space provided. 1 Which of the following is not a capital budgeting decision? a Whether to acquire a subsidiary company. b Whether to expand a product line. c Whether to fill a special order. d Whether to purchase a fleet of trucks. 2 Which of the following is an example of a nonfinancial consideration in capital budgeting? a Will an investment generate adequate cash flows to promptlyRead MoreFinc600 Week 2 Practice Quiz737 Words   |  3 Pagescom/shop/finc600-week-2-practice-quiz/ Corporate Finance Week 2 Practice Quiz Question 1 of 15 If the Wall Street Journal Quotation for a company has the following values close: 55.14; Net chg: = + 1.04; then the closing price for the stock for the previous trading day was? A. $56.18 B. $54.10 C. $55.66 D. None of the above. Feedback: Previous closing = todays closing net chg. = 55.14 - 1.04 = $54.10 Question 2 of 15 The value of a common stock today depends on: A. Number of sharesRead MoreEssay about Rock Creek Golf Club1510 Words   |  7 PagesCase 27-2: Rock Creek Golf Club Submitted by: Adam Kessler Submitted to: Dr. Alan Czyzewski Submitted for: MBA 613 Submitted on: Wednesday, 4/11/12 Question 1 An amortization table has been completed regarding the potential loan that RCGC would need to obtain in order to fund the purchase of 40 gasoline-powered golf carts. 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Firms and organizations, investors and capitalists use this concept in particular for them to decide what to accomplish with their money and ho w to achieve their goals. They give money today in order to receive money in the future. Companies