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Mid Semester Exam

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TO BE RETURNED AT THE END OF THE EXAMINATION THIS PAPER MUST NOT BE REMOVED FROM THE EXAM CENTRE SURNAME: FIRST NAME: _______________________ _______________________

STUDENT NUMBER: _______________________ _____________________________________________________________________

MID SEMESTER EXAMINATIONS SAMPLE 2
SUBJECT NAME SUBJECT NO. DAY/DATE TIME ALLOWED : : : : Corporate Finance 25765 Thursday, September 26, 2013 1.5 Hours plus 10 Min. reading time 6:00 PM – 7:40 PM
Section B B B Q. 1 2 3 Marks /9 /10.5 /10.5 /30

Section B Total

START/END TIME :

 Please mark your section below with an X.
 Papers without a marked section will not be returned in class. Mon 6 pm Tue 12 pm Thu 12 pm Thu 3 pm Tue 6 pm Thu 6 pm

INSTRUCTIONS
     Attempt all questions. Total marks 60 (Part A: 30 (12× 2.5) marks | Part B: 30 marks). This is a closed book exam. A formulae sheet is attached at pp. 11-13. A rough work page is at p. 14. Section A: Answer part A on the computer scanning sheet. Section B: Answer part B in the space provided below each question.

CF | 25765

SAMPLE 2

SECTION A:

12

MULTIPLE CHOICE QUESTIONS (30 marks)

Choose the best answer among the choices provided. 1. Based on the period of 1926 through 2008, _____ have tended to outperform other securities over the long-term. (A) U.S. Treasury bills (B) large company stocks (C) long-term corporate bonds (D) small company stocks (E) long-term government bonds

2. An analysis of what happens to the estimate of the net present value when you examine a number of different likely situations is called _____ analysis. (A) forecasting (B) scenario (C) sensitivity (D) simulation (E) break-even

3. Which of the following should be included in the analysis of a project?

I. sunk costs II. opportunity costs III. erosion costs IV. incremental costs

(A) I and II only (B)

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