aoa every1 . I attempted my fin622 today which was very easy as per my expectations & m very happy today. All mcq were from past pprs & quiz files.one new mcq which i can recall is as follows:
which company is engaged in pure play in the market?
coca cola
pepsi
shezan
nestle
i selected shezan...plz someone comment whether its right or wrong
Subjective Q were as follows:-
Q1. How PI is used in capital budgeting decisions. 3marks
Q2. A company has 800,000 12% debt financing. Calculate PV of tax benefit if tax rate is 40%. By how much tax benefit would change if tax rate decreases to 30%. 3marks
Q3.how much debt financing should be done for a firm which
1. Pays higher taxes
2. Pays no taxes 5marks
Q4. Stock A & B have beta of 1.5 & 0.75 respectively. Risk free rate is 7% & average return rate is 13%.
By how much required risk of higher risky stock is greater than of lower risky stock? 5marks
