Distance Learning Centre Ahmadu Bello University Master's in Business Admi 2023 September Semester Examination (WEEKDAY GROUP) Course- BUAD 804 Corporate financial Management INSTRUCTION; Answ: four (4) questions ‘Time allowed: 2 Hours 30 minutes 1, Capital projects are appraised using traditional and discounted cash Mow techniques. What differentiate the traditional and discounted cash flow techniques? Mention any three (3) discounted cash flow techniques. (12.5 marks) 2. Capital structure is believed to affect the market value of a company. ‘Theorist have argued differently on how capital structure affects market value. ‘The net income and net operating income theory are two of such theories. Differentiate between the net income and net operating income theories. (12.5 marks) 3. Mrs Corona needs N2,928,200 to pay for a property in 4 years" time, how much would she invest into a savings deposit account that pays 10% interest compounded annually? (12.8 marks) 4, Shareholders are entitled to return on their investment from the profit made by the company. What is this return? ‘These retums are paid in different forms. Discuss (12.5 marks) 5. The time value of money is the concept that NI you have today is worth more than it would be in the future. Therefore, it is betier to money sooner which can be invested to generate positive return in the future. Discuss some of the rcasons money today is worth more than that in the future, (12.5 marks) 6. What is the specific information that can be generated from cach of the components of corporate financial reports? (12.5 marks)