The Open Polytechnic of New Zealand Trimester 1‚ 2012 71303 Corporate Finance Final Examination Time allowed Three hours‚ plus 10 minutes to read this paper. Instructions 1. 2. 3. 4. Answer all questions. Read each question carefully. Start each question on a new page. Show all of your workings. Mark allocation Question Part A Part B 1. 2. 3. 4. 5. Cost of capital Risk and return Investment timing real option Capital structure Dividend policy 14 12 15 20 15 Total 100 Topic Multiple-choice
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Chapter 9. Risk and resturn: lessons from market history Two forms of return on investment in shares: 1. Dividend. When a company is profitable‚ some of the profit is divided amongst the shareholders. This part is the income component of your return. 2. Capital gain/loss. This is the initial worth of the equity minus the end-of-year worth of the equity. This is the second component of your return.(also reffered to a negativ/positive CG) The total monetary return is the sum of the
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ACCG927 CURRENT ISSUES IN ACCOUNTING & Corporate Governance Week 1 Introduction and Overview of Accounting Theories 1 Introduction • • • • • • • • • • About the unit Teaching and learning strategy Assessments In-class essays Essay writing workshop Research essay Turnitin requirements Oral team presentation Required readings Importance of written answers each week 2 The Nature of Accounting & Corporate Governance Theory • What is a theory? Kerlinger‚ 1964: "A set of interrelated
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Assignment on An Appraisal on Dividend Policy and Capital Structure of Fu-Wang Ceramic Industry Ltd. Corporate Finance (FIN-507) Sec-01 Prepared For: Dr. Tanvir Ahmed Chowdhury Department of Business Administration East West University Prepared By: Md. Iftekharul Haque ID: 2009-3-95-052 Shazzad Hossain ID: 2010-2-95-155 Md. Yahyea ID: 2009-1-95-040 Rakesh Mondal ID: 2010-1-95-025 Hasanuzzaman Chowdhuri ID:2009-1-95-095 Submission Date: March 30
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Case 1 – New Heritage Doll Company 1. Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling? Productions was New Heritage´s largest division as measured by total assets‚ and easily its most asset-Intensive. Approximately 75 % of the division´s sales were made to the company´s retailing division‚ with the remaining 25% comprising private label goods manufactured for other firms. The division revenue figures
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Mini Case Chapter 1 a. Why is corporate finance important to all managers? Corporate Finance is the specific area of finance dealing with the financial decisions corporations make‚ and the tools and analysis used to make the decisions. Corporate finance is important to all managers because managers must make very important decisions that will direct the future of their businesses. Most of these decisions will be made‚ based on the analysis of its financial status. Corporate finance provides
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Acknowledgement We would like to acknowledge all the help we have received from our lecturer in collecting the data and using the cases. Besides‚ every member in our group is contributed in completing the report averagely. Abstract: Investment appraisal techniques are adopted to assess whether or not capital expenditure on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain
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manager of PizzaPalace‚ a regional pizza restaurant chain. The company ’s EBIT was $50 million last year and is not expected to grow. The firm is currently financed with all equity‚ and it has 10 million shares outstanding. When you took your corporate finance course‚ your instructor stated that most firms ’ owners would be financially better off if the firms used some debt. When you suggested this to your new boss‚ he encouraged you to pursue the idea. As a first step‚ assume that you obtained
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Investment in Assets and required returns · Cash flow determination · Non-DCF and DCF techniques Case: Investment analysis and Lockheed Tri Star Assignment Questions 1. Compute the payback‚ net present value (NPV)‚ and internal rate of return (IRR) for this machine. Should Rainbow purchase it? Assume that all cash flows (except the initial purchase) occur at the end of the year‚ and do not consider taxes. 2. For a $500 per year additional expenditure‚ Rainbow can get a "Good As New" service
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choice is ultimately a cost/benefit analysis. It requires valuing the project by comparing the payoff to its costs. Problem Value‚ rank and select investment projects Example 1. Project A Required rate year 1: year 2 year 3 year 4 year 5 Initial Cost Project B Project C 7.7% $400 $1‚250 $900.00 $3‚000.00 $1‚000 $5‚045 3% $100.00 $200 $150.00 $100 $50 $490.67 6% $5‚200 $4‚000 $1‚000 $200 $100 $9‚687.23 1 Capital Budgeting Techniques A collection
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