Help me to do a managerial finance online exam right now.

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timer Asked: Apr 28th, 2020

Question Description

Help me to do a managerial finance online exam right now.

The exam will begin immediately

You will have 100mins to answer questions

40 multiple choice and 10 true or false

I have attached some sample questions

You need to promise the accurate rate is above 60 percent

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FINAL LECTURE 1 FIN 921 Managerial Finance 2020 TRI 1 – FIN 921 - Dr MARIA KIM Week 10 THANK YOU! THANK YOU FOR YOUR HARD WORK, AND I WISH YOU ALL THE BEST!!! 2 2020 TRI 1 – FIN 921 - Dr MARIA KIM DESPITE THE DIFFICULT SITUATION, YOU’VE DONE A GREAT JOB SO FAR, EVERYONE! WHAT WE LEARNT FROM LAST LECTURE  Capital structure: What is capital structure?  The effect of Financial Leverage  Three 2020 TRI 1 – FIN 921 - Dr MARIA KIM  cases Capital structure irrelevance under perfect capital market  M&M Proposition I  M&M Proposition II 2. The impact of taxes on capital structure choice 3. Tradeoff between tax savings and bankruptcy costs 1.  Optimal capital structure 3 THIS LECTURE COVERS About final exam (Don’t miss it!)  Revision  Time to say GOODBYE~  2020 TRI 1 – FIN 921 - Dr MARIA KIM  4 PART 1 – FINAL EXAM 2020 TRI 1 – FIN 921 - Dr MARIA KIM Essentials of corporate finance Ross et al. 4th edition 5 FINAL EXAM TIMETABLE & FORMAT 2020 TRI 1 – FIN 921 - Dr MARIA KIM Trimester 1, 2020  Time: Wed, 29/APR/2020, 10:30 – 12:30 Sydney time (8:30 – 10:30 in China)  Online Moodle Exam (same as midterm exam)  Study Lecture slides, textbook and tutorial questions.  Mock-up practice questions available on the Moodle (from 20th April) 6  Prepare for the UOW approved calculator.  Make sure your calculator is working well.  FINAL EXAM DESIGN       40 Multiple choice questions and 10 True or False questions to be answered on the Moodle (each 2 marks) Exam duration: 2 hours You need a firm understanding of concepts and theory to carry out the relevant calculation. It covers all chapters from week 1 to week 10. About 20 questions up to midterm exam topics, and 30 questions for the remaining topics. Please download and prepare for the Final Exam Formula sheet during your exam. This exam is worth 50% of the subject mark. You must obtain at least 50% in this exam, otherwise you will get TF. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  7 PART 2 – REVIEW 2020 TRI 1 – FIN 921 - Dr MARIA KIM 8 QUIZ ● A. B. C. D. E. $58 913 $61 246 $61 487 $63 909 $64 128 2020 TRI 1 – FIN 921 - Dr MARIA KIM The Plaza Cafe has an operating cash flow of $78 460, a depreciation expense of $8 960, and taxes paid of $21 590. A partial listing of its balance sheet accounts has a beginning balance with current assets of $141 680, net fixed assets of $687 810, current liabilities of $87 340 and long‐term debt of $267 000. Also, the balance sheet account has an ending balance with current assets of $138 509, net fixed assets of $703 411, current liabilities of $91 516, and long‐term debt of $248 000. What is the cash flow from assets? 9 QUIZ ● B. C. D. E. $201 516.38; $201 516.38 $209 092.54; $201 516.38 $209 092.54; $119 959.94 $209 092.54; $209 092.52 $221 408.97; $119 949.94 2020 TRI 1 – FIN 921 - Dr MARIA KIM A. You have $5000 you want to invest for the next 45 years. You are offered an investment plan that will pay you 6% per year for the next 15 years and 10% per year for the last 30 years. How much will you have at the end of the 45 years? How much will you have if the investment plan pays you 10% per year for the first 15 years and 6% per year for the next 30 years? 10 QUIZ Which of the following is True? A. The price of a coupon bond is equal to the present value of all future coupons. The interest rate on a bond is positively related to the price of the bond. Interest rate risk increases with the size of the coupon. The real rate of interest affects both the level and shape of the yield curve. Interest rate risk increases with the term to maturity. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 11 QUIZ ● 11.81% B. ‐10.57% C. ‐43.04% D. 10.57% E. ‐11.81% A. 2020 TRI 1 – FIN 921 - Dr MARIA KIM A company issues a 10‐year bond at par with a coupon rate of 6% paid semi‐annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%. What was the percentage change in the price of the bond over the past two years? 12 QUIZ ● $17.71 B. $18.97 C. $20.50 D. $21.08 E. $21.69 A. 2020 TRI 1 – FIN 921 - Dr MARIA KIM A firm expects to increase its annual dividend by 20% per year for the next two years and by 15% per year for the following two years. After that, the company plans to pay a constant annual dividend of $3.00 per share. The last dividend paid was $1.00 per share. What is the current value of this stock if the required rate of return is 12%? 13 QUIZ Which one of the following statements is correct? A. If the IRR exceeds the required return, the profitability index will be less than 1.0. The profitability index will be greater than 1.0 when the net present value is negative. When the internal rate of return is greater than the required return, the net present value is positive. Projects with conventional cash flows have multiple internal rates of return. If two projects are mutually exclusive, you should select the 14 project with the shortest payback period. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● QUIZ Start‐up costs to introduce a new project includes $200 000 to buy new production equipment and $100 000 to fully install and integrate this equipment. The equipment has an economic life of four years and the company will depreciate it for taxation purposes at 10% prime cost per annum. The equipment is expected to have a salvage value of $55 000 after four years of use. The corporate tax rate is 35%. Calculate the tax effect on salvage cash flows at the final (fourth) year of the project. A. No tax effect on cash flows. Decrease of cash flow of $19 250. Increase of cash flow of $43 750. Decrease of cash flow of $43 750. Increase of cash flow of $19 250. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 15 QUIZ The Bondi Pizza Palace is looking at a new pizza oven with an installed cost of $438 000. This cost will be depreciated straight‐line to zero over the project's four‐year life, at the end of which the system can be scrapped for $69 000. The pizza system will save the firm $129 000 per year in pre‐tax operating costs and the system requires an initial investment in net working capital of $29 000, which will be recouped at project end. If the tax rate is 35% and the discount rate is 9%, what is the NPV of this project. A. ‐$6320 $20 560 $14 410 $26 880 ‐$18 870 B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 16 QUIZ Which of the following statements regarding standard deviation is False? A. Standard deviation is a measure of the uncertainty surrounding the future cash flows. Standard deviation is a measure of non‐systematic risk. Standard deviation is a measure of total risk. Standard deviation is the same thing as the squared root of variance. Standard deviation is a measure of volatility of asset returns. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 17 QUIZ The beta of a risk‐free security is ______ and the risk associated with the overall market is referred to as _________ risk. A. 0: diversifiable 1; unsystematic. 0; unsystematic. 1; non‐diversifiable. 0; systematic. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 18 QUIZ Investors who do not have a diversified portfolio of investments face A. Systematic risk Unsystematic risk Systematic risk and unsystematic risk Less risk No risk B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 19 QUIZ Over the past ten years, large‐company stocks have returned 11.2%. The risk premium on these stocks was 4.8% and the inflation rate was 3.7%. What was the risk‐free rate of return? A. 2.7% 6.4% 7.5% 8.5% 10.1% B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM ● 20 QUIZ ● Stock Expected return Beta A 7.7% 0.7 B 13.1% 1.6 C 9% 1.1 D 10.4% 0.4 2020 TRI 1 – FIN 921 - Dr MARIA KIM The risk‐free rate of return is currently 3.5% and the market risk premium is estimated to be 6%. The expected returns and betas of four stocks are as follows. Which of the following is True? A. B. C. D. A and B are fairly priced, C is underpriced and D is overpriced. B and D are fairly priced, A is underpriced and C is overpriced. A and B are fairly priced, C is overpriced and D is underpriced. All stock are fairly priced. 21 QUIZ Which of the following represents the best estimate for a firm’s pre‐tax cost of debt? A. Twice the rate of return currently offered on risk‐free securities The firm’s historical cost of capital The current coupon on the firm’s existing debt The weighted average cost of capital The current yield‐to‐maturity on the firm’s existing debt B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  22 QUIZ All things being equal, which of the following will increase the after‐tax cost of debt for a firm? I. Increase in the yield to maturity of the firm's outstanding debt II. Decrease in the yield to maturity of the firm's outstanding debt III. Increase in the firm's tax rate IV. Decrease in the firm's tax rate A. I only I and III only II and III only II and Iv only I and IV only B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  23 QUIZ Sheldon is trying to decide what cost of capital he should assign to a project. Which one of the following should be his primary consideration in this decision? A. amount of debt used to finance the project use of preferred stock to finance the project mix of funds used to finance the project risk level of the project Length of the project’s life B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  24 QUIZ Piedmont Hotels is an all‐equity firm with 60 000 shares of share outstanding. The share has a beta of 1.27 and a standard deviation of 13.8%. The market risk premium is 9.1% and the risk‐free rate of return is 4.5%. The company is considering a project that it considers riskier than its current operations so it wants to apply an adjustment of 1% to the project's discount rate. What should the firm set as the required rate of return for the project? A. 12.54% 13.92% 15.39% 17.06% 17.33% B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  25 QUIZ Which one of the following is an implication of M&M Proposition II, without taxes? A. A firm's optimal capital structure is 100 per cent debt. WACC is unaffected by the capital structure of a firm. WACC decreases as the debt–equity ratio increases. A firm's capital structure is irrelevant. The risk of equity depends on both the degree of financial leverage and the riskiness of the firm's operations. B. C. D. E. 2020 TRI 1 – FIN 921 - Dr MARIA KIM  26 QUIZ  A. B. C. D. E. $2.25 million $4.50 million $7.50 million $9.00 million $0.675 million 2020 TRI 1 – FIN 921 - Dr MARIA KIM If a firm permanently borrows $25 million at an interest rate of 9%, what is the present value of the interest tax shield? Assume a 30% corporate tax rate. 27 2020 TRI 1 – FIN 921 - Dr MARIA KIM 28 ...
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