DATED: 19-Jan-2015
Current Papers of MSBA 1st Semester Mid-Term Examinations
SOLUTION OF THESE QEUSTIONS ARE GIVEN AT THE END OF THIS FILE
Corporate Finance (FIN722)
Paper-[1]
Q-1: Calculate return on asset ratio (SOLVED)
Q-2: Expected return and variance of stock under each state of economy (SOLVED)
Q-3: calculate dividend price in today's value (SOLVED)
Paper-[2]
Q-1: Calculate PV (SOLVED)
Q-2: Calculate discounted payback period (SOLVED)
Q-3: Calculate variance(SOLVED)
Q-4: Calculate today’s price of bond (SOLVED)
Paper- [3]
Q-1: Calculate present value (SOLVED)
Q-2: Calculate discounted pay back (SOLVED)
Q-3: Find out today’s price of stock when dividend 8 and forecasted price 80 per share and return 12 percent(SOLVED)
Q-4: Find out variance and squared deviation(SOLVED)
Paper-[4]
Q-1: Profit margin 28% and asset turnover ratio 1.7 times for 2011 find
a) ROA for 2011
b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if
the ROA is not changed. (SOLVED)
Q2: Year CF
0 100,000
1 40,000
2 30,000
3 25,000
4 25,000
5 25,000
if the rate of return is 10%
a) Find the discounted payback period
b) if the company targeted discount payback period is 4 years then company should accept the project or not give logical reason? (SOLVED)
Q-3: From the bond valuation, find the intrinsic value of the bond and the effective annual rate EAR. i forgot the figures .
Q-4: Company A Company B
Variable cost 60% of sales 50% of sales
Fixed cost 45000 95000
Interest expense 30000 20000
if sales revenues are 300,000 .
a) Find the DOL
b) of which company DOL is high and why? (SOLVED)
Suggested Answer by a student
i discounted back the CF and find the 4.026 DPBP which is 2 cents more than the targeted DPBP of the company so i think company should not accept that project i don't find NPV there as time is too short
Paper-[5]
Q-1: Arslan received a total of PKR 1,000,000 at the end of 7th Year at 8% a. Find the amount of investment he made. (SOLVED)
b. Find the actual discounted rate.
c. I forgot the third question
Q-2: A scenario was given with Equity PKR 400,000 & Debt. 600,000
a. Find WACC if tax? Interest on debt ? cost of capital?
b. Find WACC if equity goes to PKR 500,000 & debt remains the same (SOLVED)
Q-3: Two Projects summary given for Starlet Corporation
a. Find NPV of both projects
b. Suggest which project should be accepted and give logical reasoning.(SOLVED)
Q-4: Three Projects summary given with PKR 700,000 Capital Rationing. first project with PKR 300,000 investment, second with PKR 200,000 investment & third with PKR 400,000 investment.
a. Find NPV of all three projects at different (given) discount rates.
b. Rank the projects based on NPV
c. which of the projects should be choose based on their NPV rankings(SOLVED)
Paper-[6]
Q-1: Find Asset turn ratio(SOLVED)
Q-2: Find NPV of two projects and chose the best(SOLVED)
Q-3: Find Expected return and variance return if secured probability
Boom 25% 0.55
recession 12% 0.45(SOLVED)
Q-4: Find WACC?(SOLVED)
Paper-[7]
I do not remember the figures exactly .But that all the necessary data was given and we had to calculate NPV of three projects that were and tell which one should be undertaken and why?
Secondly we had to calculate the IRR of two projects and recommend which project to choose.
Thirdly,to calculate the present value of a company's dividend
Another to calculate the total interest enjoyed by a person who will enjoy Rs.1000000 at the end of 7 years period at an interest rate of 7%.It had 3 parts .a)calculate present value,b) calculate the total interest and c) ??? dont remember... (SOLVED)
Paper-[8]
Q-1: You have to purchase a car which will cost us 800,000
Option 1= Down Payment 200,000 today and rest of money after 4 years
Option 2= Whole amount of 500,000 if you will pay today then get a discount of 50,000.
• Interest rate is 10% at present.
• Which option is better? (SOLVED)
Q-2: Find Discounted Payback period, Data was given (very easy) (SOLVED)
Q-3: Calculate expected return and variance of stock under each state of economy and comment on result analytically
Boom 25% return, Recession 12% return
Probability is .55 and .45 respectively.(SOLVED)
Q-4: it was about Share value for today (i didn't remember value (SOLVED)
Paper-[9]
1- Return on asset ratio (SOLVED)
2- intrinsic value of bond, effective annual yield on bond (SOLVED)
3- WACC and analysis(SOLVED)
4- expected return & variance of stock(SOLVED)
Paper-[10]
Q. No: 1 Present Value of Share(SOLVED)
Q. No: 2 NPV Mutually Exclusive Projects(SOLVED)
Q. No: 3 NPV Ranking(SOLVED)
Q. No: 4 PV of a future amount, Interest Amount and Compound Interest portion(SOLVED)
Paper-[11]
1. PV of a future cashflow(SOLVED)
2.To find out price of a share(SOLVED)
3.Discounted payback period(SOLVED)
4.Expected return & variance(SOLVED)
Paper-[12]
1. ranking of 3 projects on the basis of NPV(SOLVED)
2. Intrinsic value of bond(SOLVED)
3. Discounted pay back period(SOLVED)
4. PV and compound interest find out(SOLVED)
Paper-[13]
Q # 01
Calculate PV
Year 1 10,000
Year 2 20,000
Year 3 30,000
Rate @ 10 %(SOLVED)
Q # 02
Calculate IRR
Initial Investment 35,000 Initial Investment 40,000
NPV 10,000 Rate 10% NPV 15,000 Rate 15%
NPV 5,000 Rate 5% NPV 10,000 Rate 10%
Year 8 Year 6(SOLVED)
Q # 03
Calculate Variance & Cmnt
BOOM
Return 25%
Probablity 0.55
Recession
Return 16%
Probablity 0.45
Calculate Variance(SOLVED)
Q # 04
Calulate Share Price
Dividend 8, Rate 12%, Present feasible Price 80
(b) If calculated price is higher/lower than stated; cmnt(SOLVED)
Paper-[14]
today was my corporate finance paper
q1: Q-1: Profit margin 28% and asset turnover ratio 1.7 times for 2011 find
a) ROA for 2011
b) if the profit margin decreases from 28% to 22% what will be the asset turnover ratio if
the ROA is not changed.(SOLVED)
q2: to find portfolio expected return and portfilio beta of four stocks
stock Investment expected return beta
A 50000 .12 1.4
B 30000 ... .9
C 40000 ''' 1.2
D 20000 .... .7(SOLVED)
Q3: a) Present price of stock nikalne the and given data was
Divedend = 12
Forcasted price of stock = 80
expected return = 12%
b) if calculated price is less than the actual market value then whether the actual return rate will be higher or lower? (SOLVED)
q4: it was about WACC. (SOLVED)
Advance Financial Accounting (FIN711)
Paper-[1]
Q-1: Asset Valuation
Q-2: Subscription (Very Complex Question)
Q-3: Income Statement
Q-4: Net Worth Calculation
Paper-[2]
Q-1: Stock Sheet at HO of a Branch with Different Values of Inventories
Q-2: Hypothetical Income Statement of a Company
Q-3: Profit Calculation, Given Values are Opening and Ending Capital, Liabilities and Assets, (with Missing Figures of Liabilities and Capital)
Q-4: Branch Debtors Missing Figure
Paper-[3]
Q-1: Fixed Asset account banana tha
Opening and closing balance of asset given
sale proceeed given
asset purchased given
other increase in asset given
depreciation given
Q-2: Transfers from alfa, beta and gamma department are given
transfer from alfa to beta and gamma
transfer from beta to alfa and gamma
transfer from gamma to alfa and beta
find out total amount of transfer of any two department
Q-3: Branch account banana tha... taary azar aany lagy itna ookha tha...
unrealized profit of opening stock
unrealized profit of closing stock
goods perished
opening net worth
closing net worth
investment
Q-4: prepare income statement
sale 450
CGS 60% of sale
operating profit 20% of sale
financial charges % after charge
tax % after charge
is me % pata nahi kia thi mera ye question aadha reh gia due to time shorttttttttt..
Paper-[4]
Q-1.Fixed Asset valuation
Sale proceed, opening value of asset, loss, depreciation were given.
Q-2. Hypothetical income statement of company with any figures. (Income statement as function of expenses)
Q-3. Same as posted by Mehboob hassan bhai.
Alpha, Beta & Gamma departments. Transfer b/w any 2 departments.
Q-4. Branch Accounts.
Goods in Transit accounts from branch & in branch.
Paper-[5]
Q-1 . Was related to the Preparation of asset account .... Entries were given .... U need to creat a t account to show changes in net value of assets during the year.
Q-2. Preparation of income statement thee.... Financial charges n tax expenses ki tricky calculation thee... Remaining entries were hell simple....
Q-3. Was related to departmental accounts.... Calculation of COGS and GP rate wre required....
Q-4 was related to prepration of branch stock a/c ... Again t a/c was required for calculation of balancing fig....
Paper-[6]
Q1: (a) Cash book of a retailer is showing rent received at Rs. 30,000 for a portion of his shop for the year ended September 30, 2013. Determine, his rental income in this regard during the year, using the following information: (2.5 Marks)
Deferred rental incomeAccrued rental income / Oct. 01, 2012
Rs.
1000
500 / Sep. 30, 2013
Rs.
700
1500
(b) Cash book of Café Cold is showing payment of Rs. 6,500 against a small advertisement running through a local cable operator for the year ended June 30, 2013. Determine the advertising expense in this regard during the year using the following information: (2.5 Marks)
Prepaid advertisement expenseAccrued advertisement expense / Jul. 01, 2012
Rs.
250
140 / Jun. 30, 2013
Rs.
126
198
Q2: The Secretary of Recreational Society has gathered the following information relating to the members’ subscription for the year ending September, 2014:
Subscription received in 2012-13 in cashUnearned subscription received in 2011-12
Outstanding subscription at the end of 2012-13
Outstanding subscription for 2011-12, still receivable
subscription received for 2013-14
Subscription lost permanently for the year 2012-13
Outstanding subscription as on 1-10-2012 / Rs.
7120
400
880
120
240
48
672
Required:
(a) Determine the amount of subscription to be charged to income and expenditure account for the year 2013-14; & (3 Marks)
(b) Items to be appeared in the society’s balance sheet as of September, 30, 2014. (2 Marks)
Q3: Draw a hypothetical model of any company with your own figures as on 30 September, 2014 (5Marks)
Q4: From the following data relates to Model Branch controlled by Big Head Office through debtors system for the year ended June 30, 2014, prepare a sheet showing the amount of stock as on that date: (5 Marks)
Goods-in-transit on 1-7-2013, from:
H.O to branch
Branch to H.O
H.O sent goods to branch during the year
Branch received goods during the year
Branch returns to H.O
Returns received from branch by H.O during the year
Sales at branch during the year:
Cash
Credit
Sales returns
Stock lost at branch
Profit earned by branch on its sales / Rs.
544
256
128
6288
5984
160
128
4320
2840
40
32
1/5
Production and Operational Management (MGT713)
Paper-[1]
Q-1: Forecasting is the prediction of future demands and it is accompanied with the related planning in order to meet the forecasted demand. The forecasting is believed by some people as related to production department only which is not true.
How will you advocate the above stance stating the importance of forecasting for marketing, finance and management departments?
Q-2: Independent demand is the demand for finished products whereas dependent demand isthe demand for component parts related to that product. State you opinion that forecasting for which type of demand is difficult to be made. Also describe how firms can manage independent demand in an efficient way?
Q-3: Mr. Ali is a operation manager of a crew that installs carpeting, has recorded the crew’s output over the past several weeks, his obtained results are depicted in table below:
Week Crew size Yard installed
1 6 646
2 4 620
3 3 588
4 2 570
Compute labor productivity for each week and draw a general conclusion about crew size and productivity.
Q-4: Despite to the fact that process layout has ability to handle a variety of process requirements, some critiques still don’t support the idea of process layout. Being an analyst of production/operation management how will you support their view of NOT using process layout.
Paper-[2]
Q-1: Difference between Operational and Organizational Strategy, 5 marks
Q-2: Forecasting techniques k bary main ak paragraph dia hoa tha btata tha k yahan operational manager kon si technique use kery ga. Maximin or Laplace find out kerna tha kuch alternatives dye hoe thy
Paper-[3]
Q-1: Operation manager want to forecast the impact of technical changes to the employees.
a) Which method of forecasting he has to use and Why?
b) how to implement that method you suggested?
Q-2: The operations manager of a garments manufacturing Company has the following data of the possible forecasted demands against the different alternatives which are small facility, medium facility and the large facility. Calculate Laplace and Minimax regret
Alternatives Possible - future - demand
Low (Rs.) - Moderate (Rs.) - High
Small: 5,000 7,000 14,000
Medium: 14,000 16,000 27,000
Large: 11,000 16,000 19,000
Q-3: Difference between Organizational strategies from operational strategies. and what will its impact on business if these are aligned in an organization?
Q-4: Standardization is important but some are its critics.
a) What if the standardization is not implementing?
b) Are you agree with standardization or not?
Paper-[4]
Q-1: Does improvement in the quality of a product can differentiate your product from that of your competitors? Explain in detail with logical reasons.
Q-2: It is a concept that forecasting is done by production department and it helps only to this department. Do you agree with this? Explain the importance of forecasting in the marketing, Finance and Management department?
Q-3: Numerical question from Lesson no.6. Calculate Minimax Regret and Laplace of the given data. (I have not done this question)
Q-4: yad nhn but it was from forecasting also.
Paper-[5]
Q1. Define Opration and organizational strategy. Y op strategy need to align with organizational strategy.?
Q2. Question about cpfr.
Q3. Data was given and need to find lalace and minimax regression.