FINS1613 past papers (1 Viewer)

[natebrah1]

If anyone is keen, could i grab a hand with Q11, 12,13 and 14 of 2006 paper?

 

[4025808]

yeah, im aiming for like a 35/50 for the exam now, hopefully I can achieve that if they repeat around half of the questions given to us. :/

 

[Omnipotence]

If anyone is keen, could i grab a hand with Q11, 12,13 and 14 of 2006 paper?

11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391
Re = 0.05 + 1.3391(0.06)=0.1303

12) WACC = 0.1075 .:. Accept V, W and X (WACC > IRR) Total value = 3.4 m
Since 50% equity financed; 1.7 m will go towards retained earnings leaving 0.8 m paid out as dividend
Pay out ratio = 0.8/2.5 = 0.32

13) Flotation cost gets subtracted from market price of share, then normal stuff:
0.123 = 0.4(0.11)(1-t)+0.1(1/9)+0.5(14/85)
Solve for t

14) 1.2x0.4 = 0.48
Net income = (2M-5x0.1 - 0.48Mx0.1) x (1-0.4) = 871200
Dividends = 871200 - 0.72M
Ratio = (871200 - 0.72M)/871200 = 0.174

 

[4025808]

11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391
Re = 0.05 + 1.3391(0.06)=0.1303

12) WACC = 0.1075 .:. Accept V, W and X (WACC > IRR) Total value = 3.4 m
Since 50% equity financed; 1.7 m will go towards retained earnings leaving 0.8 m paid out as dividend
Pay out ratio = 0.8/2.5 = 0.32

13) Flotation cost gets subtracted from market price of share, then normal stuff:
0.123 = 0.4(0.11)(1-t)+0.1(1/9)+0.5(14/85)
Solve for t

14) 1.2x0.4 = 0.48
Net income = (2M-5x0.1 - 0.48Mx0.1) x (1-0.4) = 871200
Dividends = 871200 - 0.72M
Ratio = (871200 - 0.72M)/871200 = 0.174

holy shit question 11 was a repeated question from the practice papers :/

Anyway, gonna start the 2006 paper now

 

[natebrah1]

@ Omnipotence thank you, absolute lifesaver!

 

[damok]

anyone for 2009 paper questions lol?

 

[brachester]

holy shit question 11 was a repeated question from the practice papers :/

Anyway, gonna start the 2006 paper now

repeated question as in they copied and paste from the practice question or just similar?

 

[halapenyo]

omnipotence mate impressive work.

 

[DforDANNY]

11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391

I swear I've never seen (Or I don't recall) any material in lectures/textbook about the relationship of the betas between an unlevered firm and the levered firm

 

[halapenyo]

just type it up on the internet.

 

[DforDANNY]

just type it up on the internet.

What I'm trying to say is that I don't think that's going to be in tomorrow's finals given that we (sem2 2012) have never covered such material.

 

[4025808]

repeated question as in they copied and paste from the practice question or just similar?

copy and paste.

_______________________

far out, how does one get Q5 and 6 of the 2006 paper =_=

 

[brachester]

copy and paste.

_______________________

far out, how does one get Q5 and 6 of the 2006 paper =_=

Awesome, this might just be my only chance of passing this course >

 

[4025808]

copy and paste.

_______________________

far out, how does one get Q5 and 6 of the 2006 paper =_=

oh wait nvm i found why for Q6. but for Q5.

As for Q5, for after tax salvage value, do they include the total cost of depreciation (i.e the 1 million dollars been depreciated every year) into finding what the after tax salvage value is?

 

[halapenyo]

What I'm trying to say is that I don't think that's going to be in tomorrow's finals given that we (sem2 2012) have never covered such material.

good point. hopefully it isnt. i saw some other questions in past papers relating to covariance which we havent done.

 

[4025808]

good point. hopefully it isnt. i saw some other questions in past papers relating to covariance which we havent done.

hehehe we covered that in ACTL1001

but if they were to cover covariance, then they'd try as hard to give us formulas for that...

 

[Omnipotence]

hehehe we covered that in ACTL1001

but if they were to cover covariance, then they'd try as hard to give us formulas for that...

yeah they tell you its the variance over the expected return or some shit

 

[Omnipotence]

I swear I've never seen (Or I don't recall) any material in lectures/textbook about the relationship of the betas between an unlevered firm and the levered firm

same with DTL equation no idea what the fuck that was on

 

[4025808]

same with DTL equation no idea what the fuck that was on

Won't be tested on. if it does get tested on then FUARRRRR

 

[4025808]

Btw anyone help me on Q13 of the 2006 S1 paper. I don't seem to be getting any of the answers, which is ironic :/

Are the flotation costs relevant to the question? :O