today’s Paper
Total Questions = 64
Total Marks = 88
Total 1 Mark MCQ = 56
Total 3 Marks Short Questions=4
Total 5 Marks Long Questions =4
What is the difference between Flexible Policy and Restrictive Policy regarding size of investment in current assets while making short-term financial policy?
Differentiate between Systematic Risk and Unsystematic Risk. Which of them can be eliminated by diversification?
Suppose common stocks of a company are currently selling for Rs.30 per share. Stock market analysts estimated a dividend of Rs.2 per share for the next year and it is expected that the dividend will grow by 10% more or less indefinitely. What return does this stock offer?
A bank is offering 12% interest rate compounded quarterly on its saving account. What would be the Effective Annual Rate (EAR) ?
“An investment is acceptable if the IRR exceeds the required return. It should be rejected otherwise.” Explain.
Sumi Inc. has outstanding Rs.1, 000- face –value bond with a 16 percent coupon rate and 6 years remaining until final maturity. Interest payments are made quarterly. What would be the value of this bond if your nominal annual required rate of return is : (i) 13 %, (ii) 19 %.
S&T Company just paid a dividend of Rs.2 per share and has a share price of Rs.30. The dividends are expected to grow @ 10% forever. S&T Company has Rs.75 million in equity and Rs.75 million in debt in its total capital. The tax rate for the firm is 35% and the Cost of debt is 8%. What will be the Weighted Average Cost of Capital (WACC) for S&T Company ?
Total Questions = 64
Total Marks = 88
Total 1 Mark MCQ = 56
Total 3 Marks Short Questions=4
Total 5 Marks Long Questions =4
What is the difference between Flexible Policy and Restrictive Policy regarding size of investment in current assets while making short-term financial policy?
Differentiate between Systematic Risk and Unsystematic Risk. Which of them can be eliminated by diversification?
Suppose common stocks of a company are currently selling for Rs.30 per share. Stock market analysts estimated a dividend of Rs.2 per share for the next year and it is expected that the dividend will grow by 10% more or less indefinitely. What return does this stock offer?
A bank is offering 12% interest rate compounded quarterly on its saving account. What would be the Effective Annual Rate (EAR) ?
“An investment is acceptable if the IRR exceeds the required return. It should be rejected otherwise.” Explain.
Sumi Inc. has outstanding Rs.1, 000- face –value bond with a 16 percent coupon rate and 6 years remaining until final maturity. Interest payments are made quarterly. What would be the value of this bond if your nominal annual required rate of return is : (i) 13 %, (ii) 19 %.
S&T Company just paid a dividend of Rs.2 per share and has a share price of Rs.30. The dividends are expected to grow @ 10% forever. S&T Company has Rs.75 million in equity and Rs.75 million in debt in its total capital. The tax rate for the firm is 35% and the Cost of debt is 8%. What will be the Weighted Average Cost of Capital (WACC) for S&T Company ?
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