BWFF2043 ADVANCED FINANCIAL MANAGEMENT
MID TERM EXAMINATION SEMESTER 1 2018/2019
MATRIC NO:_________________________________
The financial management concept that explains money today is more valuable than
1.
the same amount of money in a year’s time is called
A. capital budgeting.
B. capital structure.
C. dividend policy.
D. time value of money.
What is the future value of six years ordinary annuity payments of RM500, evaluated
2.
at a 10% interest rate?
A. RM2,500.65
B. RM3,100.50
C. RM3,657.67
D. RM3,857.81
Assuming you are planning to deposit RM12,000 today into an account in SMB. Six
3. years from today, you expect to withdraw RM10,000. If the account pays 5% interest
per year, how much will remain in the account nine years from today?
A. RM5,000.24
B. RM5,500.00
C. RM6,500.56
D. RM7,039.54
There is an opportunity to buy a perpetuity which pays RM2,000 annually with a
4. required rate of return of 15%. You will be indifferent to buying or not buying the
investment if it were offered at a price of
A. RM10,333.33.
B. RM11,333.33.
C. RM12,333.33.
D. RM13,333.33.
1
, BWFF2043 ADVANCED FINANCIAL MANAGEMENT
MID TERM EXAMINATION SEMESTER 1 2018/2019
MATRIC NO:_________________________________
5. All of the following affect the value of a bond except
A. investors’ required rate of return.
B. the recorded value of the firm’s assets.
C. the coupon rate of interest.
D. the maturity date of the bond.
6. Eurobonds are
issued in a country different from the one in whose currency the bond is
A.
denominated.
B. issued only in Europe.
C. the European equivalent of a junk bond.
D. the European equivalent of an investment bond
7. Which of the following is generally not a characteristic of a bond?
A. Voting rights
B. Par value
C. Claims on assets and income
D. Indenture
CLOM firm has an issue of RM1,000 par value bonds with a 9% stated interest rate
outstanding. The issue pays interest annually and has 20 years remaining to its
8.
maturity date. If bonds of similar risk are currently earning 11%, the CLOM bond will
sell for ________ today.
A. RM1,000
B. RM716.67
C. RM840.73
D. RM1,123.33
2
MID TERM EXAMINATION SEMESTER 1 2018/2019
MATRIC NO:_________________________________
The financial management concept that explains money today is more valuable than
1.
the same amount of money in a year’s time is called
A. capital budgeting.
B. capital structure.
C. dividend policy.
D. time value of money.
What is the future value of six years ordinary annuity payments of RM500, evaluated
2.
at a 10% interest rate?
A. RM2,500.65
B. RM3,100.50
C. RM3,657.67
D. RM3,857.81
Assuming you are planning to deposit RM12,000 today into an account in SMB. Six
3. years from today, you expect to withdraw RM10,000. If the account pays 5% interest
per year, how much will remain in the account nine years from today?
A. RM5,000.24
B. RM5,500.00
C. RM6,500.56
D. RM7,039.54
There is an opportunity to buy a perpetuity which pays RM2,000 annually with a
4. required rate of return of 15%. You will be indifferent to buying or not buying the
investment if it were offered at a price of
A. RM10,333.33.
B. RM11,333.33.
C. RM12,333.33.
D. RM13,333.33.
1
, BWFF2043 ADVANCED FINANCIAL MANAGEMENT
MID TERM EXAMINATION SEMESTER 1 2018/2019
MATRIC NO:_________________________________
5. All of the following affect the value of a bond except
A. investors’ required rate of return.
B. the recorded value of the firm’s assets.
C. the coupon rate of interest.
D. the maturity date of the bond.
6. Eurobonds are
issued in a country different from the one in whose currency the bond is
A.
denominated.
B. issued only in Europe.
C. the European equivalent of a junk bond.
D. the European equivalent of an investment bond
7. Which of the following is generally not a characteristic of a bond?
A. Voting rights
B. Par value
C. Claims on assets and income
D. Indenture
CLOM firm has an issue of RM1,000 par value bonds with a 9% stated interest rate
outstanding. The issue pays interest annually and has 20 years remaining to its
8.
maturity date. If bonds of similar risk are currently earning 11%, the CLOM bond will
sell for ________ today.
A. RM1,000
B. RM716.67
C. RM840.73
D. RM1,123.33
2
