Fin622 Mid Term Current Paper (Dec 2010)
Friday, December 03, 2010 Posted In .Midterm Dec 2010 Edit Thistotal quiez=32
mcq =28
2 question =3 numbers
2 question = 5 number
Q suppose we have two stocks i.e. stock A and stock B.stock A has beta of 1.5 and stock B has a beta of 0.75.The expected rate of return on average stock is 13% and the risk free rate of return is 7%.By how much does the required rate on the riskier stock exceeds the required return on the less risky stock. (5)
Q Why weighted average cost of capital of a levered firm is lesser than that of an Un-levered firm? Explain briefly? (3)
yeh 2 subjective quiez hain
what are gear and un gear beta describe the difference? 3
Break-even analysis and sensitivity analysis explain it.marks 3
Why capital rationing makes hurdle for business to invest in optimum investment? 5