My Todays MGT201 - Financial Management Paper 23questions 18 MCQs 5 Subjectives. Pata nahi kahan se aaya tha :( Bht bura hua mera to :( :( Best of Luck Guys :) :) 1. Financial analyst of ABC Company uses Coefficient of Variation (CV) to make comparison of different investment projects. Which investment project will be selected by the financial manger (with low or high result)? Explain why. (3marks) 2. ABC Company is a toy manufacturer. Currently it has option to work on 60 projects, 20 projects out of these are with positive Net Present Value (NPV). Total cost to implement these 20 projects is Rs. 8 million. But the management of the company has imposed limit of Rs. 5 million for these projects for upcoming year. Company has to forego value-added projects due to this restriction. What type of problem, the company is facing? (3marks) 3. Find the amount to which Rs. 500 will grow under each of the following conditions: 12% compounded annually for 5 years 12% compounded semiannually for 5 years (5marks) 4. Expected return of Mr. Ali’s security A and B are 18% and 22% respectively. He can opt one of the given portfolio. Alternative 1: Weighted average for security A and B are 75% and 25% respectively. Alternative 2: Weighted average for security A and B are 50% and 50% respectively. You are required to specify which alterative will give highest rerun of portfolio. Note: Support your answer with complete working (5marks) 5. ABC Company pays coupon on its bond quarterly; calculate intrinsic value of bond under the following circumstances: A 5 year bond with 13% coupon rate is selling at Rs. 1,220. Face value of the bond is Rs. 1,000. Required rate of return is 16%. (5marks)
Posted on: Fri, 16 Jan 2015 07:21:58 +0000