Friday, December 3, 2010

Fin622 Mid Term Current Paper (Dec 2010)

Thanks to those who share papers:

total 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

Another Paper:

differentiate stable dividend policy and the constant dividend policy? 5 marks

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

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