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MGT201 Current Final Term Fall 2013 Shared by Tariq File 11

Total Questions are 69

4 questions of 5 marks

3 questions consists on 3 marks

and 62 MCQ's


Q# 69 [5]

What is long-term financing ? Explain the factors that can affect the decision of manager while deciding about long term financing?

Q # 68 [5]

You are considering making a very long term interest in the common stock of company ABC. Your required return on the investment (based on risk) is 20% (rce). The present dividend by company ABC is Rs. 4 par value is Rs. 10 Asume growth rate is 10%.
Required:
Determine Dividend yield pricing for common stock under perceptual investment.

Q # 67 [5]

What is the market value of common equity under NOI approach? Assume that the overall capitalization rate is 20% if the firm has an expected net operating income of Rs. 15,000 with Rs. 14,000 of debt (market value)
The firm has an expected net operating income of Rs. 65,000 with Rs. 44,000 of debt (market value)

Q # 65 [3]

What are the effects of leverage on WACC ?

Q # 64 [3]

Explain project financing with the help of an example?

Q # 63 [3]

Firms increases financial risk in two ways. Explain these.


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