Mgt201 Mid Term Current Paper (Dec 2010)
Sunday, December 05, 2010 Posted In .Midterm Dec 2010 Edit Thisthere was 32 Q
2 Q for marks
&
2 for 5 Marks
Q1:Define EPS approach? (3 Marks)
Q2:-what are securities? (3 Marks)
Q3:-Calculation wala Q yad nahi.........
Q4:-Define the Market Risk and Diversifiable risk? & why risk occurs? ( 5 marks)
Q:1 How should investors interpret price-earnings ratios ?(3)
Q:2what are the problems in capital rationing?( 3 )
Q:3 what is bond ? explains its exemples? (5 )
Q:2what are the problems in capital rationing?( 3 )
Q:3 what is bond ? explains its exemples? (5 )
18MCQ's two Q of 5marks and two Q of 3marks
why bonds exhibit interest rate of risk? 3
how price risk and return calculated give its formula? 3
types of shares in market? 5
aik yaad nahi
10 mcq's in 2papers me se thy..
Define interest rate risk and investment risk ? 3 Marks
Why we don't invest in highest returns investments? 3 marks
There are two stocks in the portfolio of Mr. N, Stock A and Stock B. the information of this portfolio is as follows: 5 Marks
Common stock Expected rate of return Standard deviation
Stock A 15% 10%
Stock B 20% 15%
Calculate the expected rate of return on this portfolio assuming that Stock A consists of 75% of the total funds invested in the stocks and the remainder in Stock B.
Risk and expected rate of return explain briefly? 5 Marks
2-which of the following slect the combination of investments proposals that will provide greatest increase in the value of the firm within the budget ceiling constraint?
3-a five year ordinary annuity has periodic cash flows of Rs:100 each year if the interest rate is 8 percent ,the present value of this annuity is closest to which of the following ?
4- which of the following is equall to the average text rate ?
5-which type of the responsibilities are primarily assigned to controller and treasurer respectively?
6-who determinces the market price of a share of common stock ?
LONG QUESTIONS:
1-A stock is expected to pay a dividend of Rs:0.75 at the end of the year. The required rate of return is Ks+10.5% and the expected constant growth rate is g=6.4%.what is the stock's current price?
2- there are some risks(unique risk) that we can diversity but some of the risk(market risk) are not diversifiable .explain both types of risk?
3-hammad inc is considering two alternative mutually exclusive projects both projects require an initial investment of Rs:10000 and are typical average risk projects for the firm Project A has an expected life of 2 year with after –taz cash inflow of Rs:6000. and 8000 at the end of year 1 AND 2 respectively?