Test Bank for Financial Management: Theory & Practice, 17th Edition by Brigham

,Editionm4,mVersionm1

ISBNm978-1-84808-324-0

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©mGetmThroughmGuidesm2012

, Aboutmthempaper i - v
Question
Topic Name Marks PagemNumbers
mnumber
Question Solution
mbank bank
m



Section A m
FinancialmManagementmFunction
1 10 1m-m1 59m-m59
EPSmandmShareholdermwealt
2 JJGmCo 25 1m-m2 60m–m62
hmmaximisation
3 Multiplemstakeholders 10 2m-m2 63m-m64

Section B m FinancialmManagementmEnvironment
4 Financialmmanagementmenvironment Tagna 25 3m-m3 65m–m66
5 Financialmintermediary 10 4m-m4 67m-m67
6 Rolemofmfinancialmintermediaries APXmCo 25 4m-m5 68m-m70
7 Banksmandmmoneymmarkets 10 5m-m5 71m-m71

Section C m WorkingmCapitalmManagement
8 EOQmandmreceivablesmmanagement AsifcomInc 25 7m-m8 73m–m75
9 FactoringmandmInvoicemdiscounting HudsonmLtd 25 8m-m8 76m–m78
Workingmcapitalmmanagementman
10 AnjomLtd 25 9m-m10 78m–m 80
dmfactoring
11 Foreignmreceivablesmmanagement SprintermPlc 25 10m–m11 80m–m81
12 Discountmpolicymformpromptmpayment AresmLtd 25 11m–m12 82m–m83
13 Earlymsettlementmdiscount PNPmLtd 25 12m–m12 83m–m85
14 Earlymsettlementmdiscount VelmmCo 25 13m–m13 85m–m87
15 CashmbudgetmandmBaumolmmodel ThornemCo 25 14m-m14 88m–m89
16 EOQmandmFactoring FLGmCo 25 14m–m15 90m–m94
17 Overtradingmandmfactoring DoemLtd 25 15m–m16 94m–m97
EOQm&mhedgingmforeignmaccount
17 PKAmCo 25 17m–m17 97m–m100
smpayable
19 EOQmmodel TNGmCo 25 17m–m18 100m–m102

Section D m InvestmentmAppraisal
20 Proposedminvestmentm-mNPVmandmIRR CharmmInc 25 19m–m19 103m–m105
21 Specificminvestmentmdecisionm-mNPV LeamingermInc 25 20m–m20 105m–m108
22 NPVmandmIRR PVmCo 25 21m-m21 108m–m110
23 NPVmandmIRR DuomCo 25 21m-m22 111m–m113
24 Proposedminvestmentm-mNPVmandmIRR ParadisemLtd 25 22m-m23 113m–m115
25 NPVmandmprojectmevaluationmstages BasrilmInc 25 23m–m24 115m–m117
26 Netmpresentmvalue PainlessmCo 25 24m–m24 117m–m118
Bramblingm(Electronic
27 Sensitivitymanalysis 25 25m–m25 118m–m120
smLtd)
28 Sensitivitymanalysis UmunatmLtd 25 26m-m26 120m–m122
29 NPVmandmProposedmInvestment SCmCo 25 26m-m27 122m–m124
30 3Financingmcashmflows ASOPmCo 25 27m-m27 125m–m127

, Section E m
BusinessmFinance
Financemformsmallmandmmediummsiz
31 LaviniamproductsmLtd 25 29m-m30 129m–
edmentities
m131

32 Rightsmissue SmithmLtd 25 30m-m30 131m–
m134

Evaluationmofmamnewmfinancialmpropo
33 ArwinmLtd 25 31m-m31 134m–
sal
m138

34 Sourcesmofmfinance McTeemPlc 25 32m-m33 138m–
m141

35 Rightsmissuemofmshares TranscomLtd 25 33m–m33 141m–
m143

36 Evaluationmofmsourcesmofmfinance EchomCo 25 33m–m34 143m–
m147

37 Sourcesmofmfinance TirwenmLtd 25 35m-m35 147m–
m150

38 Ratiomanalysismandmsourcesmofmfinanc TFRmLtd 25 36m–m36 150m–
e m152

39 Shortmtermmfinance 10 36m–m36 153m–
m153

40 Islamicmfinance 20 36m-m36 154m–
m155

41 DividendmPolicy AnafimCo 25 37m-m37 155m–
m156



Section F m CostmofmCapital
42 ModiglianimMillerm&mcapitalmstructure NereusmandmJanusmLt 25 39m–m39 157m–
d m158

43 Costmofmcapital PirinmCo 25 40m–m41 158m–
m160

44 ModiglianimMillerm&mcostmofmcapital GurwinmLtd 25 41m–m42 161m–
m162

45 Capitalmassetmpricingmmodelm(CAPM) RupabmCo 25 42m–m42 162m–
m164

46 Costmofmcapital SelwynmLtd 25 42m-m43 164m–
m165

Weightedmaveragemcostmofmcapit
47 PolstronmLtd 25 43m-m43 166m–
alm(WACC)
m168

48 Capitalmstructure ReliablemLtd 25 44m-m44 168m–
m171

49 Costmofmcapitalmandmdividendmpolicy DDmCo 25 45m-m45 172m-m174

Section G m BusinessmValuations
50 Businessmvaluations GreenwoodmLtd 25 47m–m47 175m–
m177

StanzialmIncman
51 Valuationmmethod 25 48m–m49 177m–
dmBesserlotmLtd
m180

OaktonmIncman
52 Businessmvaluation 25 49m-m50 180m–
dmMallardmInc
m182

53 Valuationmofmshares SomervillemLtd 25 50m-m51 183m–
m184

OlivinemLtdmandmHalit
54 Businessmvaluations 25 52m–m53 184m–
emLtd
m186

Valuationmofmbusiness/convertiblembo PhobismComan
55 25 53m-m53 186m-m189

nd dmDanocamCo