Rana Abubakar Khan

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FIN622 MID TERM PAPER SHARED BY STUDENT

ON JUNE 5, 2017 AT 10:55AM

paper was quit easy

1.Fv of annuity

2. find payback periods for two projects and which one is better option

3.cost of equity cost of debt and WACC increase or decrease...two points were given

4. find new current ratio ,mixed vales were given first find current asset and current liabilities thn put in
current ratio

5.find WACC values were given Beta=1 two rates of market and other forgot , debt equity ratio and tax...

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FIN622 MID TERM PAPER SHARED BY STUDENT

FIN622 MID TERM PAPER SHARED BY STUDENT

FIN-622 current midterm paper 17 dec to 29 dec 2016

fall 2016 current paper

FIN722 ( corporate Finance)
NPV
WACC
YTM
Cash Flow

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FIN622 MID TERM PAPER SHARED BY STUDENT

FIN622 VU CURRENT MIDTERM SPRING 2013 PAPERS

Total questions were 32

28 MCQs and 4 Subjective Questions; of 3,3,5 and 5 marks respectively

MCQs were mostly from the attached file

Subjective Questions were:

1) Interest tax shields are valuable, why don’t all tax paying firms borrow as much as
possible. Marks 5

2) Following table shows the returns on ABC stock 2003-2007. ( Rate of returns were given
for all years and we had to calculate variance). Marks 5

3) In ques no. 3 following data was given: Marks 3

Expected rate of return on market portfolio 14%

T-bills yield 6%

Expected return (investor) 10%

Calculate Beta of stock=?

4) Differentiate b/w systematic and unsystematic risk. Marks 3

FIN622 MID TERM PAPER SHARED BY STUDENT

ON MAY 26, 2013 AT 1:51PM

yesterday was my FIN622 paper

total question 28... 4 question 3 marks n 2 question 2 marks k thy..

5 marks: 1) find accouting profit and Break even? 2 ) Find WACC?

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 3 marks: 1) Find profitability index 2) Find beta equity 3) how fundamental analysis can help investor in
buying decion.

FIN622 MID TERM PAPER SHARED BY STUDENT

ON MAY 29, 2013 AT 7:33PM

Today's FIN622 paper:

27 question
22 mcq's 70% from past papers or 30% new

1. find Beta Portfolio (3 Marks)

2. How Fundamental Analysis helps the firm (3 marks)
3.If a firm face deficiencies then how firm rise there capital in current period (3 Marks)

4.Fix cost xxxx,

Variable cost (75% of sales),
sales xxxxx
profits xxxxx
DOL 03

*if 10% increase the sale what will be the profit?

*its fall in Degree Of Operating Leverage DOL or not?? (ye mje yad nai but kuch aesa hi tha) (5 Marks)

5. Suppose we have two stocks i.e. stock A and stock B. Stock A has beta of 1.5 and stock B has a beta of
0.75.The expected rate of return on average stock is 13% and the risk free rate of return is 7%.By how much
does the required rate on the riskier stock exceeds the required return on the less risky stock. (5 Marks)

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FIN622 MID TERM PAPER SHARED BY STUDENT

ON JANUARY 15, 2015 AT 11:40AM

MCQs were not very difficult but covering all 22 lectures.

2 subjective questions were about gearing beta. Values were given and we are asked to calculate un-gear
beta.

1 question was about break even units and what is the effect of increased fixed cost?

calculate WAAC ? Long term debt, Short term debt and equity were given.

Calculate Portfolio beta? Individual % of Stocks and their betas were given.

I hope this will be helpful for the students of this course.

FIN622 MID TERM PAPER SHARED BY STUDENT

ON JUNE 7, 2014 AT 8:26PM

My todays paper

19 mcqs mostly new, conceptual and numeric's

1.how sunk cost is irrelevant and opportunity cost is relevant.

2. one question in which stocks return and beta was given and a risk free treasury bills return was given in
60:40 ratio.we were asked to calculate portfolio beta and portfolio return also if beta is less than 1 what it
means.

3.values were given and we were asked to write equation of constraint(haven't read about this concept in
handouts)

4.geared beta and ungearing related question

5.stock valuation numeric

6.breakeven point calculation numeric

5
 Good luck for your corporate finance paper.

FIN622 MID TERM PAPER SHARED BY STUDENT

ON JUNE 8, 2014 AT 12:39PM

one question NPV related

2 question about breakeven revenue and CS and Break even unit

2 question beta se related they

tough paper tha.

FIN622 MID TERM PAPER SHARED BY STUDENT

ON JUNE 10, 2014 AT 1:10PM

my today paper

value are given and we find the ARR

value are given and we find the leverge m& m model

value are given and we find the brekeven unit and accounting profit

value are given and we fine the stock price after 3rd year

value are given and we find the equity beta pur play method...

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FIN622 MID TERM PAPER SHARED BY STUDENT

ON JUNE 11, 2014 AT 7:41PM

my paper

find PI

Find WACC

Find payback period

FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 8, 2012 AT 8:04PM

Total 27 question , 22 Mcqz , 5 descriptive.

Mcqs were mostly from past papers

Q---1 Marks --- 3

Projects Beta Standard deviation

Security X 0.8 0.4
Security Y 2 0.3

1. Which security is defensive and why?

2. Whish security has greater unsystematic risk and why?
3. Which security requires more risk premium and why?

Q---2 Why calculation of common stock is difficult than bonds? Marks --- 3

Q---3 Expected rate of return on market portfolio 14%

T-bills yield 6%

Expected return (investor) 10%

7
 Calculate Beta of stock=? Marks --- 3

Q---4 Interest tax shields are valuable, why don't all taxpaying firms borrow as much as possible.
Marks --- 5

Q---5 Marks --- 5

Projects Initial investment PV of cash flows

W (50000) 65000
1. Calculate
X (100000) 120000 NPV.
Y (85000) 113000 2. Rank
Z (96000) 105000 projects
according to
NPV and calculate total NPV of selected projects.

FIN622 MID TERM PAPER SHARED BY STUDENT

CORPORATE FINANCE (FIN622) MID TERM PAPER FALL 2012 VIRTUAL UNIVERSITY
1
FIN622 Corporate Finance Mid Term paper on 08-12-2012 by Owais Shafique
Total 27 Questions for 41 Marks. Time 60 Minutes There were 21 MCQs, all from past papers. In fact all the short
questions were also from past papers.
1. What is the decision making criteria for NPV? Give reasons? (3 Marks)
2.
2. How does the probability analysis evaluate the financial feasibility of a project? (3 Marks)

3. Why weighted average cost of capital (WACC) should be used as discount rate for Analyzing the financial
viability of a project? (3 Marks)

4. Suppose we have two stocks i.e. stock A and stock B. Stock A has beta of 1.5 and stock B has a beta of 0.75.The
expected rate of return on average stock is 13% and the risk free rate of return is 7%.By how much does the
required rate on the riskier stock exceeds the required return on the less risky stock. (5 Marks)

5. Interest tax shields are valuable, why don't all tax paying firms borrow as much as possible? (5 Marks)

8
FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 9, 2012 AT 8:11PM

Total 27 questions

21 obj

Others were,

1 Q for calculating WACC

1 Q OF NPV

1 Q OF PI

1 Q OF IRR

FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 13, 2012 AT 10:29AM

Q---1 Marks --- 3

Projects Beta Standard deviation

Security X 0.8 0.4
Security Y 2 0.3

1. Which security is defensive and why?

2. Whish security has greater unsystematic risk and why?
3. Which security requires more risk premium and why?

Q---2 Why calculation of common stock is difficult than bonds? Marks --- 3

Q---3 Expected rate of return on market portfolio 14%

T-bills yield 6%

9
 Expected return (investor) 10%

Calculate Beta of stock=? Marks --- 3

Q---4 Interest tax shields are valuable, why don't all taxpaying firms borrow as much as possible.
Marks --- 5

Q---5 Marks --- 5

Projects Initial investment PV of cash flows

W (50000) 65000
1. Calculate
X (100000) 120000 NPV.
Y (85000) 113000 2. Rank
Z (96000) 105000 projects
according to
NPV and calculate total NPV of selected projects.

plz koi in ko solve kr dy

thanks thanks

FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 14, 2012 AT 11:58AM

Answer this question plz

Q---1 Marks --- 3

Projects Beta Standard deviation

Security X 0.8 0.4
Security Y 2 0.3

10
 1. Which security is defensive and why?
2. Whish security has greater unsystematic risk and why?
3. Which security requires more risk premium and why?

FIN622 MID TERM PAPER SHARED BY STUDENT

ON NOVEMBER 27, 2011 AT 7:25AM

MCQS =59 * 1 =59

QSTN OF 3 NO =4 * 3 =12
QSTN OF 5 NO =4 * 5 =20

TOTAL QUIZ = 67 MARKS =91

MOST OF MCQZ FROM PAST PAPERZZ.:

some long qstn

1) Diffrence B/W growth stock and income stock (3 marks)
2) Described the steps in credit management (3 marks)
3)s teps involved in merger and acquision (5 marks)
4) How a hedge could be astablished with currency option (5 marks)

FIN622 MID TERM PAPER SHARED BY STUDENT

ON NOVEMBER 27, 2011 AT 7:25AM

Mostly MCQ from Past Papers. Some were New

4 Question 3 Numbers

1-Describe EAR
2-Short Term Interest Rate is Priced

4 question 5 Numbers
1-Call option & Put Option
2-Numerical calculate years from FV formula
3-EOQ describe

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FIN622 MID TERM PAPER SHARED BY STUDENT

**FIN622 ALL SUBJECTIVE 2011**

image: http://www.vu39.com/forum/images/smilies/happy.gif

1. What are the costs and benefits of holding inventories? 3 Marks

2. How it is decided to exercise an Option Contract or allowed it to lapse? Briefly explain. 3

3. Enlist the anti-takeover measures to be taken by a Target company to resist a takeover bid of the predator
company. 3

4. What is the payoff to buyers and sellers of call and put options? 5

5. The Inventory Manager of a firm has given the following data: 5

Consumption per Period = S = 4000 Units

Economic Order Quantity = EOQ = 80 Units

Lead Time = L = 1 Month

Stock out Acceptance Factor = F = 1.10

Requirement:

Determine the Economic Order Point for the firm.

Solution
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EOP = SL + F *sqrt(S x EOQ x L)

Where

S= Consumption per Period

L= Lead Time

F= Stock out Acceptance Factor

EOQ = Economic Order Quantity

EOP = 4000 x 1+ 1.10 * sqrt(4000 x 80 x 1)

EOP = 4000 + 1.10 * sqrt(320,000)

EOP = 4000 + 1.10 (565.68)

EOP = 4000 + 622.25

EOP = 4622.2.

6. How much should you pay for a bond with Rs.1,000 face value, a 14
percent coupon rate, and five years to maturity if your appropriate
discount rate is 10 percent and interest is paid semiannually? 5

Face Value = 1000

Coupon Rate = 14%

Years to Maturity = 5 years

13
ROR = 10%

Present Value = 140/(1+10%/2)^2 + 140/(1+10%/2)^4 + 140/(1+10%/2)^6 + 140/(1+10%/2)^8 +

140/(1+10%/2)^10 + 1000/(1+10%/2)^10

= 126.98 + 115.178 + 104.47 + 94.76 + 85.95 + 613.91 = 1141.25

7. Enlist the share valuation methods for Mergers & Acquisition. 5

How Short-Term Interest rate future are Priced? Explain With help of
Some Examples? (3 Marks)

Enlist the Anti-Takeover Measure to be taken by a Target Company to

resist a Takeover Bid of the Predator Company.

(3 Marks)

Acquiring Companies often prefer Purchase Mergers to Consolidation

Merger. Why?

14
(3 Marks)

How Forward Rates are Determined in foreign Currency Market?

Explain Briefly.

(5 Marks)

How a Multinational Firm could reduce Political Risk?

(5 Marks)

Differentiate Between the Following Variable of a Credit Policy: (5 Marks)

1) Credit Period

2) Credit Standard

3) Collection Policy

4) Discounts

15
Suppose You Invest Rs 400,000 in Treasury bill and Rs 600,000 in Marketable Portfolio. What is
the Return on your Portfolio, If bills yield 6% and the Expected Return on Market is 14%. What
does return on this Portfolio imply for Expected Return on Individual Stock with Beta of 0.6?

(5 Marks)

Q: Type of merger and how companies reduce risk in merger (3 marks )

Q: Difference between the following : (5 marks )

Credit period

Credit standard

Collection period

Discount

Q: Method of valuation of share in merger & acquisition (5 marks)

Q: Suppose a firm is planning to borrow some amount in a short-term period. How this firm can create a
hedge against rising interest rates? (5 marks)

FIN622 MID TERM PAPER SHARED BY STUDENT

ON NOVEMBER 30, 2011 AT 2:20PM

Today i got these questions in FIN 622 that i remember.

what is capital rationing? and discuss its basic factors. (5)

Diff B/w Geared & Ungeared Beta (3)

Systematic Risk & Un-Systematic Risk (3)

Accounting & Economic Break Even (3 or 1)

16
 And 5marks ka IRR calculate karna tha..

FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 2, 2011 AT 10:21PM

what is capital rationing? and discuss its basic factors. (5)

Diff B/w Geared & Ungeared Beta (3)
Systematic Risk & Un-Systematic Risk (3)
Accounting & Economic Break Even (3 or 1)
And 5marks ka IRR calculate karna tha..

FIN622 MID TERM PAPER SHARED BY STUDENT

**FIN622 ALL SUBJECTIVE 2011** [Happy]

1. What are the costs and benefits of holding inventories? 3 Marks

2. How it is decided to exercise an Option Contract or allowed it to lapse? Briefly explain. 3

3. Enlist the anti-takeover measures to be taken by a Target company to resist a takeover bid of the predator
company. 3

4. What is the payoff to buyers and sellers of call and put options? 5

5. The Inventory Manager of a firm has given the following data: 5

Consumption per Period = S = 4000 Units

Economic Order Quantity = EOQ = 80 Units

Lead Time = L = 1 Month

Stock out Acceptance Factor = F = 1.10

17
Requirement:

Determine the Economic Order Point for the firm.

Solution

EOP = SL + F *sqrt(S x EOQ x L)

Where

S= Consumption per Period

L= Lead Time

F= Stock out Acceptance Factor

EOQ = Economic Order Quantity

EOP = 4000 x 1+ 1.10 * sqrt(4000 x 80 x 1)

EOP = 4000 + 1.10 * sqrt(320,000)

EOP = 4000 + 1.10 (565.68)

EOP = 4000 + 622.25

EOP = 4622.2.

6. How much should you pay for a bond with Rs.1,000 face value, a 14 percent coupon rate, and five years to
maturity if your appropriate discount rate is 10 percent and interest is paid semiannually? 5

Face Value = 1000

Coupon Rate = 14%

Years to Maturity = 5 years

18
ROR = 10%

Present Value = 140/(1+10%/2)^2 + 140/(1+10%/2)^4 + 140/(1+10%/2)^6 + 140/(1+10%/2)^8 +

140/(1+10%/2)^10 + 1000/(1+10%/2)^10

= 126.98 + 115.178 + 104.47 + 94.76 + 85.95 + 613.91 = 1141.25

7. Enlist the share valuation methods for Mergers & Acquisition. 5

How Short-Term Interest rate future are Priced? Explain With help of Some Examples? (3 Marks)

Enlist the Anti-Takeover Measure to be taken by a Target Company to resist a Takeover Bid of the Predator
Company.

(3 Marks)

Acquiring Companies often prefer Purchase Mergers to Consolidation Merger. Why?

(3 Marks)

How Forward Rates are Determined in foreign Currency Market? Explain Briefly.

(5 Marks)

19
How a Multinational Firm could reduce Political Risk?

(5 Marks)

Differentiate Between the Following Variable of a Credit Policy: (5 Marks)

1) Credit Period

2) Credit Standard

3) Collection Policy

4) Discounts

Suppose You Invest Rs 400,000 in Treasury bill and Rs 600,000 in Marketable Portfolio. What is the Return on
your Portfolio, If bills yield 6% and the Expected Return on Market is 14%. What does return on this Portfolio
imply for Expected Return on Individual Stock with Beta of 0.6?

(5 Marks)

Q: Type of merger and how companies reduce risk in merger (3 marks )

Q: Difference between the following : (5 marks )

Credit period

Credit standard

Collection period

Discount

Q: Method of valuation of share in merger & acquisition (5 marks)

Q: Suppose a firm is planning to borrow some amount in a short-term period. How this firm can create a hedge
against rising interest rates? (5 marks)

20
FIN622 MID TERM PAPER SHARED BY STUDENT
27-11-2011

Mostly MCQ from Past Papers. Some were New

4 Question 3 Numbers

1-Describe EAR
2-Short Term Interest Rate is Priced

4 question 5 Numbers
1-Call option & Put Option
2-Numerical calculate years from FV formula
3-EOQ describ

FIN622 MID TERM PAPER SHARED BY STUDENT

ON DECEMBER 2, 2011 AT 10:24PM

MCQS =59 * 1 =59

QSTN OF 3 NO =4 * 3 =12
QSTN OF 5 NO =4 * 5 =20

TOTAL QUIZ = 67 MARKS =91

MOST OF MCQZ FROM PAST PAPERZZ.:

some long qstn

1) Diffrence B/W growth stock and income stock (3 marks)
2) Described the steps in credit management (3 marks)
3)s teps involved in merger and acquision (5 marks)

21
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