FIN622 - Corporate Finance Final term
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FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:11 pm
today was my paper of fin 622 the paper was neutral .
Total 69 questions
64 MCQS
and 5 long questions mcqs are mostly from the past papers while long questions ere mostly theory related no numerical .
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Total 69 questions
64 MCQS
and 5 long questions mcqs are mostly from the past papers while long questions ere mostly theory related no numerical .
[You must be registered and logged in to see this link.]
kamran- Monstars
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Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:12 pm
my today ppr of fin-622 subjective here....
1. Give at least three reasons of merger failure and explain each of them briefly.3 marks
2. If a firm is facing cash flow problems, what steps would you suggest to the firm to overcome its cash flow problems?5 marks
3. How a firm can create a hedge against interest rate risk? Explain briefly. 5 marks
4. 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
5. Differentiate between the Forward Contract and Currency Future. 5 marks
plz must read ppt slides n lectures.....
1. Give at least three reasons of merger failure and explain each of them briefly.3 marks
2. If a firm is facing cash flow problems, what steps would you suggest to the firm to overcome its cash flow problems?5 marks
3. How a firm can create a hedge against interest rate risk? Explain briefly. 5 marks
4. 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
5. Differentiate between the Forward Contract and Currency Future. 5 marks
plz must read ppt slides n lectures.....
kamran- Monstars
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Age : 37
Re: FIN622 - Corporate Finance Final term
by winnersgroup Tue Feb 15, 2011 3:12 pm
Today i give fin622 paper it was not so easy most mcqs were from past paper but subjective was very tough.here are some subjective question
1:Analyze credit policies and explain these
Policy collection
credit period
discount
credit standarlization.
2:what is meant by payoff ?
3:If american exporter sold goods to pakistani importer and pakistani importer promised to american that he will pay amount after 3 month.then what will be the currency risk or currency effect will be made for american exporter?
4:How a firm can create a money market hedge against transaction exposure,when the firm has to make a payment at some future date?
aur financial feasibility se relative koi question aye the sorry i forget.
1:Analyze credit policies and explain these
Policy collection
credit period
discount
credit standarlization.
2:what is meant by payoff ?
3:If american exporter sold goods to pakistani importer and pakistani importer promised to american that he will pay amount after 3 month.then what will be the currency risk or currency effect will be made for american exporter?
4:How a firm can create a money market hedge against transaction exposure,when the firm has to make a payment at some future date?
aur financial feasibility se relative koi question aye the sorry i forget.
winnersgroup- Fire Breathing Bluebirds
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Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:13 pm
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)
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)
kamran- Monstars
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Posts : 301
Join date : 2011-02-11
Age : 37
Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:13 pm
Describe briefly anti-takeover tools used by target firms to terminate the predator’s attack. 3
A firm is facing cash shortage. Firm can get short term loan from bank annual interest on bank loan is 18% and also firm can delay payment to supplier which terms 2/10 net 60. in your opinion what firm should do? 3
What is mean by long position and short position of foreign currency traders in the currency market? 5
. 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
How a firm can create a hedge against interest rate risk? Explain briefly. 5 marks
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
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A firm is facing cash shortage. Firm can get short term loan from bank annual interest on bank loan is 18% and also firm can delay payment to supplier which terms 2/10 net 60. in your opinion what firm should do? 3
What is mean by long position and short position of foreign currency traders in the currency market? 5
. 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
How a firm can create a hedge against interest rate risk? Explain briefly. 5 marks
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
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kamran- Monstars
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Age : 37
Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:14 pm
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
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
Please Check This Solution…. Time was short…. Jo zehen mein aya Kar aya…
Face Value = 1000
Coupon Rate = 14%
Years to Maturity = 5 years
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
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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
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
Please Check This Solution…. Time was short…. Jo zehen mein aya Kar aya…
Face Value = 1000
Coupon Rate = 14%
Years to Maturity = 5 years
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
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kamran- Monstars
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Age : 37
Re: FIN622 - Corporate Finance Final term
by winnersgroup Tue Feb 15, 2011 3:15 pm
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)
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)
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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)
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)
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Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:15 pm
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kamran- Monstars
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Re: FIN622 - Corporate Finance Final term
by kamran Tue Feb 15, 2011 3:16 pm
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)
[You must be registered and logged in to see this link.]
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)
[You must be registered and logged in to see this link.]
kamran- Monstars
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waqas- Monstars
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Age : 38
Re: FIN622 - Corporate Finance Final term
by waqas Thu Feb 17, 2011 11:10 am
*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)*
> *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)*
> 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)*
> *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)*
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Re: FIN622 - Corporate Finance Final term
by Asad Fri Feb 18, 2011 2:31 pm
hy fellows.
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yesterday was my paper of corporate finance.muje 2 new questions ae jo k .
muje WACC ka question aya tha.k wacc asset base valuation q use krta hai.book value q ni use krta debt to equity ratio men.explain kren
n miller model k baray mne ik question tha
baqi saray inhi current questions mne se hi repeated questions the
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[You must be registered and logged in to see this link.]
yesterday was my paper of corporate finance.muje 2 new questions ae jo k .
muje WACC ka question aya tha.k wacc asset base valuation q use krta hai.book value q ni use krta debt to equity ratio men.explain kren
n miller model k baray mne ik question tha
baqi saray inhi current questions mne se hi repeated questions the
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Re: FIN622 - Corporate Finance Final term
by Asad Fri Feb 18, 2011 2:32 pm
Aoa . I attempted my fin622 ppr today. 50% mcq were new for me. Subjective were as follows:-
Q1. Explain three sources of synergies. 3marks
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Q2.Explain features of currency options. 3marks
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Q3. Explain features of forward rate agreements. 3marks
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Q4. Explain what is the margin in a call & put option. 5marks
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Q5. Find NPV from given data using 10% interest rate.
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years
Cash flow
1
1000
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2
1000
3
(2000)
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4
3000
Q6. Explain how EOQ model is beneficial for a company in relation to minimizing its inventory costs. 5marks
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Q1. Explain three sources of synergies. 3marks
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Q2.Explain features of currency options. 3marks
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Q3. Explain features of forward rate agreements. 3marks
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Q4. Explain what is the margin in a call & put option. 5marks
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Q5. Find NPV from given data using 10% interest rate.
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years
Cash flow
1
1000
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2
1000
3
(2000)
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4
3000
Q6. Explain how EOQ model is beneficial for a company in relation to minimizing its inventory costs. 5marks
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Asad- Deep Bench
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Re: FIN622 - Corporate Finance Final term
by Asad Fri Feb 18, 2011 3:12 pm
Questions:
1: In terms of annual interest cost, would it be better for the company to forego a 1/10 net 20 Cash discount or 2/10 net 30 discounts (Assume 360 days / year).
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2: Why exchange rates fluctuate between currencies, explain
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3: What are the costs associated with the grant of credit?
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4: Short and long term position in Currency future?
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5: What are the reasons of high P/E ratio?
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6: Firm increase dividend next year to Rs 5 per share. Price of stock is Rs 105, expected rate of return is 10%. Calculate current price of stock?
1: In terms of annual interest cost, would it be better for the company to forego a 1/10 net 20 Cash discount or 2/10 net 30 discounts (Assume 360 days / year).
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2: Why exchange rates fluctuate between currencies, explain
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3: What are the costs associated with the grant of credit?
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4: Short and long term position in Currency future?
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5: What are the reasons of high P/E ratio?
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6: Firm increase dividend next year to Rs 5 per share. Price of stock is Rs 105, expected rate of return is 10%. Calculate current price of stock?
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