FIN2601 Financial Management EXAM PACK 2022.

FIN2601 Financial Management EXAM PACK 2022. Question Answer Explanation 1 4 It is where short-term debt securities are bought and sold 2 3 Unlimited Liability 3 1 Maximizing shareholder wealth 4 3 Different objectives and ownership and control in different hands 5 3 ���������� ൌ ��� � ൌ 75000 0.08 ൌ 6 1 P/Y=1 N = 30*1 PV = 85 000 PMT = -8 273 I/Y = ? 8.99% 7 3 P/Y=1 I/Y =9 PV = 12 000 PMT = -1 500 N = ? 14.77 years 8 3 0 CF0 300 CF1 300 CF2 600 CF3 900 CF4 1200 CF5 8 I/YR SHIFT NPV = ? 2489.51 9 1 HP: P/Y=12 N = 3*12 I/Y = 12 PV = 500 000 PMT = -16 607.15 1 INPUT 2 or 2 INPUT SHIFT AMORT = = = 476 669.62 SHARP: P/Y=12 N = 3*12 I/Y = 12 PV = 500 000 Comp: PMT = -16 607.15 AMRT: 1 down arrow 2 Down arrow= 476 669.62 10 1 P/Y=4 N = 4*6 I/Y = 5 FV = 90 000 PMT = ? -3 238.80 Downloaded by: naidoomellinie | Distribution of this document is illegal S - The study-notes marketplace FIN2601 – Suggested Solution – Oct/Nov 2019 Examination 11 3 P/Y=12 N = 12*2 I/Y = 14 PMT = -950 PV = ? 19 786.36 12 3 Set your calculator to BGN P/Y=1 N = 4 I/Y = 6 PMT = -8 400 FV = ? 38 951.58 13 3 Set your calculator to BGN P/Y=1 N = 4 I/Y = 8 PV = -8 000 FV = ? 10 883.91 14 4 P/Y=2 N = 2*8 I/Y = 6 FV = 83 300 PV = ? 51 909.81 15 4 ������� ������� ������ ൌ ����� �������� ����ℎ���� ��� ��� ��� ൌ ∗ 365 ൌ 95.40 ���� 16 2 Debt Ratio = Total Liabilities / Total Assets Total Asset Turnover = Sales / Total Assets 0.85 = / Total Assets Total Assets = / 0.85 Total Assets = 3 616 470.59 Debt Ratio = 1 643 000 / 3 616 470.59 Debt Ratio = 0.4543 or 45.43% 17 2 18 4 Downloaded by: naidoomellinie | Distribution of this document is illegal S - The study-notes marketplace FIN2601 – Suggested Solution – Oct/Nov 2019 Examination 19 3 �������� ��� �ℎ��� ൌ ��� ������ െ ���������� ��������� �� �� �������� �ℎ���� ��� ൌ 79950 െ 15000 8605 ൌ 7.55 20 3 P/Y = 2 FV = 1 000 I/Y = 4 N = 14*2 PMT = 0 PV = ? -574.37 21 2 P/Y = 1 FV = 1 000 N = 5 PMT = (0.08*1000) = 80 PV = -974.42 I/Y = ? 8.65 22 4 P/Y = 4 FV = 10 000 I/Y = 10 N = 9*4 PV = -9 340 PMT = ? 221.98 ��� ൌ ������ ���� ∗ ��� 221.98 ൌ �� ∗ 10000 �� ൌ 221.98 10000 ൌ 0. ∗ 4 ∗ 100 ൌ �. �% 23 2 IP = F ± k* IP = 8.7 ± 4 = 4.7 24 2 25 1 P/Y = 1 FV = 1 000 I/Y = 6 PV = -1 059.61 PMT = 80 N = ? 3.38 years 26 4 P/Y=4 N = 12*4 I/Y = 13 PMT = 98.50 FV = 1 000 PV= ? -2 593.31 27 2 28 3 Downloaded by: naidoomellinie | Distribution of this document is illegal S - The study-notes marketplace FIN2601 – Suggested Solution – Oct/Nov 2019 Examination 29 2 P/Y = 1 FV = 1 000 I/Y = 9 N = 3 PV = -1 895.68 PMT = ? 443.84 30 1 31 2 r = rf + B (rm ± rf) 14 = rf + 1.45 (11.5 ± rf) 14 = rf + 16.675 - 1.45rf 0.45rf = 2.675 Rf = 5.94% 32 3 ������ ൌ ���ℎ ���� ���� ����������� ൅ ������� ����� െ ������� ����� ������� ����� ������ ൌ 30000 ൅ െ ∗ 100 ൌ ��. �% 33 4 �௣ ൌ ሺ�ଵ ∗ �ଵ ሻ ൅ ሺ�ଶ ∗ �ଶሻ ����ℎ��: �ଵ ൌ 65000 65000 ൅ 35000 ൌ 0.65 ��� �ଶ ൌ 0.35 �௣ ൌ 0.65 ∗ 0.7 ൅ 0.35 ∗ 1.3 ൌ �. ૢ� 34 2 � ൌ �௙ ൅ �ሺ�௠ – �௙ሻ ������ ���� ������� ൌ ሺ12 െ 5.3ሻ ൌ �. �% 35 1 �଴ ൌ � � ൌ 7.50 0.16 ൌ ��. �� 36 4 �଴ ൌ �ሺ1 ൅ �ሻ � െ � ൌ 5.42ሺ1.08ሻ 0.12 െ 0.08 ൌ ���. �� 37 2 �/� ൌ ����� �������� ��� �ℎ��� 11.3 ∗ 25000 ൌ ����� ����� ൌ ��. �� 38 3 39 2 �଴ ൌ �ሺ1 ൅ �ሻ � െ � 90.50 ൌ 8.30ሺ1.05ሻ � െ 0.05 90.5� െ 4.525 ൌ 8.3 90.5� ൌ 12.825 � ൌ ��. ��% Downloaded by: naidoomellinie | Distribution of this document is illegal S - The study-notes marketplace FIN2601 – Suggested Solution – Oct/Nov 2019 Examination 40 2 �଴ ൌ ���ሺ1 ൅ �ሻ ���� െ � ൌ 600 000ሺ1.03ሻ 0.09 െ 0.03 ൌ �� ��� ��� Long Questions Question 1 (23 MARKS).