MGT201 Current FinalTerm 2nd Paper 26 Feb 2017

MGT201 Current FinalTerm 2nd Paper
MGT201 Current FinalTerm 2nd Paper 

Todays MGT201(Financial management) ppr:
Total 50 questions

Q1. Calculate expected return on stock,if expected return on market portfolio is 14%,beta is 1.3 & risk free tax is 9% (3 marks)

Q2. What is reinvestment plans? What are its advantages for firm & investors? (3 marks)

Q3. Calculate avg. collection period of a firm, if firm makes all sales on credit out of which 60% of sales on 30 days &remaining on 60 days (3 marks)

Q4. Suppose ABC decides to issue preferred stock of face value rs.12, fixed dividend of Rs.3.5 per shares, lawyers and stock brokers commission will cost Rs.2 per share. Calculate net proceeds & cost of capital. (3 marks)

Q5. Calculate portfolio beta if investment is make in 4 assets. It consist of beta coefficient of -0.3, -0.9 , 1.0 & 1.5 ( 3 marks)

Q6. Find the expected theoretical fair price of stock B consisting of KSE index 100 by using Gordon- SML equation (5 marks)

Q7. Cost of equity (5 marks)

Q8. Value of 2 portfolios was given and we have to find the expected return of both portfolios and mention which portfolio is better for investment (5 marks)

Q9. Find out the ROE (5 marks)

Q10. Can firm use the comparison between ROE & RE( required rate of return on equity) to decide the dividend payout? (5 marks)

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