FINS1613 past papers (1 Viewer)

[4025808]

Yeh, cos you need the right growth to get the right price. :x

Far out I keep stumbling on every single question. stuck on Q15 and Q16 so I moved onto the next few. May need your help if you don't mind though.

 

[APCSfan]

Far out I keep stumbling on every single question. stuck on Q15 and Q16 so I moved onto the next few. May need your help if you don't mind though.

Q15) DIV(0) = $0.40
EPS = $2
ROE = 0.3

Now, g = (1- payout)*ROE
==> g = (1 - 0.4/2)*0.3 (payout ratio is just the fraction of dividends you pay from your earnings, ie dps/eps)
====> = 0.24

Q16)
Price of div = [DIV(0)*(1+g)]/(1+ks) + .... (You know the div price formula)
===> = 0.4(1.24)/1.15 + 0.4(1.24)^2/1.15^2 + [0.4(1.24)^2(1.08)/0.15-0.08]/1.15^2 <-- lol soz this is a bit messy but yh.. the formula itself is messy. the last bit is just: [DIV(2)(1+g)/(ks-g)]/(1+ks)^2

eventually you'll get C: $8.07

 

[4025808]

Q15) DIV(0) = $0.40
EPS = $2
ROE = 0.3

Now, g = (1- payout)*ROE
==> g = (1 - 0.4/2)*0.3 (payout ratio is just the fraction of dividends you pay from your earnings, ie dps/eps)
====> = 0.24

Q16)
Price of div = [DIV(0)*(1+g)]/(1+ks) + .... (You know the div price formula)
===> = 0.4(1.24)/1.15 + 0.4(1.24)^2/1.15^2 + [0.4(1.24)^2(1.08)/0.15-0.08]/1.15^2 <-- lol soz this is a bit messy but yh.. the formula itself is messy. the last bit is just: [DIV(2)(1+g)/(ks-g)]/(1+ks)^2

eventually you'll get C: $8.07

holy crap i forgot that formula. QQ why can't they just give us a formula sheet =_=

Thanks for that though (Y)

 

[APCSfan]

np lol, gonna sleep, freekin test is too early, gl!

 

[4025808]

Anyone know how to do these Qs:

Q41
Q47

Properly? Coz I seem to get somewhere close to the correct answer but it's probs not the right working out.

 

[DforDANNY]

Q47) You're better off not abandoning the project because the PV cash flows if the tech fails is still more than the PV of the abandonment option, so the value of abandonment is 0
Q41) I was guessing this was M&M w/o taxes and bankruptcy costs - capital structure doesn't affect value of the firm.

 

[bladeys]

lol

 

[t00l]

lol

 

[halapenyo]

fuck

 

[Tortilla]

?

 

[annarh-saur]

That exam was hard.

 

[Tortilla]

was ok

 

[Omnipotence]

haha so many repeated past paper questions

 

[Tortilla]

from about 40ish it got hard,

 

[halapenyo]

what was the answer to the second question. the one with constant and non constant dividend growth? i swear i saw that in a past paper.

 

[4025808]

du mahhhh

 

[d3st1nyLiang]

can anyone offer advice or have any useful resources for management LOL?

and goodluck for those doing it tomorrow

 

[Omnipotence]

can anyone offer advice or have any useful resources for management LOL?

and goodluck for those doing it tomorrow

nope im screwed

 

[d3st1nyLiang]

I just started...lol

 

[michaeljennings]

can anyone offer advice or have any useful resources for management LOL?

and goodluck for those doing it tomorrow

hah no point bro, just bullshit everything. Its as though they randomly generate your final mark anyway hah