Примеры экзаменационных вопросов
Question 1
ALB Co has the following financial objectives:

• to achieve an average earnings growth of at least 6% per annum
• to keep its gearing, measured as [debt / (debt + equity)] by market value, below 35%

In the last three years, ALB Co's operating profit has grown from $4.0 million to $4.6 million, and its profit after tax has grown from $2.3 million to $2.9 million.

ALB Co has 1 million $1 shares in issue, trading at $1.88, and $1,000,000 of bonds, trading at $106 per cent.
Which of the objectives has ALB Co achieved?
1 point
Question 2
BBL Co is based in country G, where the functional currency is the G$.

Some of BBL Co's suppliers are based in the UK, and they invoice BBL Co in British pounds (GBP). Therefore, the directors of BBL Co keep a close eye on the exchange rate between the G$ and the GBP, and they use the interest rate parity theory to estimate the likely future exchange rates.

The current spot rate is G$ / GBP 1.88 (that is G$ 1 = GBP 1.88), and the expected interest rates in the UK and country G respectively are 5% and 8% over the next year.
What is the forecast spot rate in one year's time using the interest rate parity theory and assuming that the current forward rate is the best forecast of the future spot rate?
1 point
Question 3
The share price of Woundale Co rose from $2.00 to $2.30 last year. During the year, the company paid out a dividend of $0.12 per share.
What was the annual return to investors last year?
1 point
Question 4
Q Co is an entity that was set up by the government of Country Q to produce electricity for the country's citizens.

Five years ago it was privatised as the government of Country Q opened up the energy market to competition. The shares of Q co are now owned by both private investors and institutions, and are traded on Country Q's stock market.
What kind of entity is Q Co?
1 point
Question 5
Blunderbuss Co is a listed company with 1 million $1 shares in issue and long term bank borrowings of $5 million. The bank interest rate in the most recent year was 8%, but this is expected to change to 10% for the whole of next year.

The company made an operating profit of $1.84 million last year.
What will be the change in the interest cover of Blunderbuss Co next year, on the assumption that operating profits will stay constant?
1 point
Question 6
Spray Co has a $10 million fixed rate borrowing. It has entered an interest rate swap to swap the interest to a floating rate for a three year period.

The bank has quoted a swap rate of 4.10% for LIBOR, with interest fixing dates on the start date of each year of the swap agreement.

Spray Co's fixed rate of interest is 4.40%.

LIBOR on the start date of year 2 of the three year swap agreement was 4.25%, but this had risen to 4.58% by the end of year 2 (12 months later).
What is the difference in Spray Co's overall net interest paid in the year (year 2 of the swap agreement) as a consequence of using the swap?
1 point
Question 7
A company is evaluating the decision whether to lease an asset or to buy it outright using newly borrowed funds.
Which of the following is the BEST discount rate to use for the evaluation, assuming that the decision has already been taken to acquire the asset?
1 point
Question 8
Chapman Co has just reported a pre-tax profit of $24.29m, and the value of its tangible assets in its statement of financial position is $128.66m.

The average return on assets for companies in the same industry is 10%.

The tax rate is 30% and Chapman Co's cost of capital is 16%.
What is the value of Chapman Co using the CIV (Calculated Intangible Value) approach?
1 point
Question 9
Molier is an unquoted entity with a recently reported after-tax earnings of $3,840,000. It has issued 1 million ordinary shares with nominal value of $0.50 each. A similar listed entity has a P/E ratio of 9.
What is the current value of one ordinary share in Molier using the P/E basis of valuation?
1 point
Question 10
BB is considering a takeover bid for QQ.

BB has prepared a valuation of QQ based on a forecast of cash flows before financing charges, discounted at an appropriate weighted average cost of capital. The valuation is $130 million.

If BB does acquire QQ, QQ's debt of $20 million will become repayable.
If BB wants to make a cash offer, what should the value of the cash offer be in total?
1 point
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