Corporate Finance Exam with Answers Posted on May 10‚ 2012 by Sam Corporate Finance‚ Chapters 8‚ 9 & 10. Exam Questions: 1. A project’s opportunity cost of capital is: A. The forgone return from investing in the project. 2. Which of the following statements is correct for a project with a positive NPV? A. The IRR must be greater than 1. 3. What is the NPV of a project that costs $100‚000 and returns $50‚000 annually for 3 years if the opportunity cost of capital is 14%? C. $16‚085
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References: Abdu‚ P.S (2003). "The Cost and Finance of Education in Nigeria "Education Today Quarterly; June‚ Vol. 10 (1); 12 - 16 Adedeji‚ S Adeyemi‚ J.K (1998). “Costs in Education”‚ (pp. .56-67)‚ in M. Nwadiani (ed.)‚ Education management for Sub-Saharan Africa. Benin-City: Nigerian Society
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Subject: Corporate Finance (3 credits) Reference book: 1. Essentials of managerial Finance: Harcourt College 2000 2. Fundamentals of financial management: Mc Graw Hill 2007 Chapter 01: An overview of Finance What is finance? Finance is concerned with decisions about money (cash flows) Finance decisions deal with how money is raised and used Everything else being equal: * More vale is preferred to less * The sooner cash is received the more value it has * Less risky
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Citations: * AusInfo - Department of Finance and Administration (1994)‚ Style Manual for Authors‚ Editors and Printers‚ 5th Edition‚ Australian Government Publishing Service‚ Canberra.
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BUSINESS FINANCE FAO: DIRECTORS‚ NATURALLY FRESH PLC CONTENTS Page(s) 1. Introduction 3 2. Required Rate of Return on Equity 3 3. Beta 3 4. Capital Asset Pricing Model 4 5.1 Limitations of CAPM 4 5.2 The APT Model 4 5.3 The Three-Factor Model 4 5.4 Required Rate of Return using APT or Three-Factor 5 Model 5. Bonds 5 6.5 How bond prices are determined
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There is nothing like optimum capital structure for a firm. The Optimal Capital structure is that Capital Structure at which the weighted Average cost of capital (Ko) is Minimum. It is that combination of Equity and Debt at which the total cost of capital is mini-mum. Trade-off theory argues that there ’s an optimal amount of debt of each firm. At this level of debt‚ firms can take the most advantage of debts. Debts can be tax shield so that they can save money for firms to reinvest in
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The main goal of a finance manager is maximizing of wealth rather than maximizing profit--measuring wealth or value is by cash flows and not accounting profits. This goal must be constantly in mind when making investments‚ financing these investments‚ and funding the company’s day-to-day operations. The total value of the firm can be increased by pushing up the price or market value of the existing shareholders’ ordinary shares. Investors react to poor investment decisions or poor financing decisions
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2008 Public finance Public finance is known as public sector economics or public economics focus on the taxing and spending activities of government and their influence on the allocation of resources and distribution of income. Public finance is the study of the role of the government in the economy. It is the branch of economics which evaluate the government revenue and government expenditure of the public authorities and the modification of one or the other to achieve desirable effects and
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CAPITAL BUDGETING CASE STUDY: Bridgehampton Shores Inn: Mutually Exclusive Project Comparison Finance 203 – Managerial Finance Dr. Anoop Rai Fall 2012 Capital Budgeting Case Study: Bridgehampton Shores Inn: Mutually Exclusive Spa Projects Introduction Bridgehampton Shores is an Inn located on the Eastern Inn of Long Island. It typically caters to families looking to vacation in the area and take advantage of all the East End has
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Finance Writing Assignment Name FIN 302 Instructor December 9‚ 2013 Table of Contents I. CHINA STEPS TOWARD MARKET-BASED INTEREST RATES………………………..3 A. China and Certificates of Deposits……………………………………………………………..3 B. Recent Development……………………………………………………………………………..3 C. Implications……………………………………………………………………………………3-4 D. Comments………………………………………………………………………………………..4 II. FED CLOSES IN ON BOND EXIT…………………………………………………………….5 A. US Bonds…………………………………………………………………………………………
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