MGT201 Current FinalTerm Paper 20 August 2016

MGT201 Current FinalTerm Paper 20 August 2016

Total questions = 55

MCQs 1- 46 (1 mark each) i don't know whether they were from past papers or not as i didn't do any past paper..mostly conceptual and theoretical few were calculations of cost of debt or WACC or annuity etc.

Question 47 - 50 ( 3 marks)

- Briefly explain coefficient of variance.

- Calculation of CCF(constant cash flow) using annuity formula

- Why dividend payments are not considered tax deductible

- Calculation of WACC for 100% leveraged firm

- Calculation of Beta portfolio for 3 equal investments, Alpha, beta and Lemda (beta coefficients were given for all 3 investments)
Question 51 - 55 ( 5 marks)

- Calculation of WACC in 2 cases (i) debt (ii) without debt

- Calculation of annuity in 2 cases (i) ordinary annuity (ii) annuity due

- 4 weaknesses of Capital structure mathematical model

- NI approach to calculate WACC

- Calculation of portfolio return using formula for 2 stocks (pg # 116)

Another Paper  :

46 MCQs, mostly logical and random, less from past papers

9 subjective (4 of 3 marks) and (5 of 5 marks)
Question of 5 marks:

1. Why firm offer repurchasing of stock, and what are the advantages?

2. Equity 65%, Debt 35%, after tax cost of debt 9%, expected dividend 3 per share, constant growth rate 6%, market price of share Rs. 30, Calculate cost of equity and WACC?

3. Equity 70,000, Debt 30,000, Cost of equity 13%, before tax cost of debt 10%, Tax 35%, calculated WACC?

4. ROR 15%, dividend Rs. 4, stock value for constant growth rate a) 5%, b) 10%, c) 12%, calculate stock value?

5. Portfolio risk page # 93 example, values was different only?

Question of 3 marks:

1. Calculate Time Interest Earned, values was given.

2. Calculate Fixed cost & Breakeven units? Page # 132

3. Expected Return of portfolio, page# 92, values was changed.

4. Calculate required ROR for common stock, page # 81, values were given

Another Paper  20 august 2016

total 46 MCQs and 9 subjective questions.

MCQs were not very difficult.some were from past papers.

1)why tax shield is always there for debt financing rather in the equity financing.give logical reasons?3marks

2)calculate expected ROR? same question as in Lecture 19 page 86?3mark

3)ROE=? rd=15% Tc=30%   3mark

4)calculate market value of commen equity under NOI approach? 3mark

NI=10,000Rs    Debt=7000Rs firm's overall capitalization rate=15%

5)What is annual operating break even point in no of units and in rupees sales? data was given?(Lecture 31 page 133) 5marks

6)XYZ company's commen stock pays DIVI of 2.40 per share this year.the company expects that its earning and Dividend will grow at the rate of 5% per year for foreseeable future. 5 MARKS
a) in order to have 56Rs per share price what is ROR?
b)if company has dividend growth at 10% then what ROR is required for 56Rs per share?

7)Find Risk of market using CML = ? given data was   (5MARKS)
risk free return= 10%      <r>=18%    risk of portfolio=5%     expected portfolio return=12%

8) Find WACC ? 5 Marks

9) 5 step process in finding WACC? 5marks.

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