FINS1613 past papers (1 Viewer)

natebrah1

Member
Joined
Oct 22, 2011
Messages
36
Gender
Male
HSC
2011
If anyone is keen, could i grab a hand with Q11, 12,13 and 14 of 2006 paper?
 
Last edited:

4025808

Well-Known Member
Joined
Apr 2, 2009
Messages
4,377
Location
中國農村稻農
Gender
Male
HSC
2011
Uni Grad
2017
yeah, im aiming for like a 35/50 for the exam now, hopefully I can achieve that if they repeat around half of the questions given to us. :/
 

Omnipotence

Kendrick Lamar
Joined
Feb 7, 2009
Messages
5,327
Location
Sydney
Gender
Male
HSC
2011
Uni Grad
2016
If anyone is keen, could i grab a hand with Q11, 12,13 and 14 of 2006 paper?
11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391
Re = 0.05 + 1.3391(0.06)=0.1303

12) WACC = 0.1075 .:. Accept V, W and X (WACC > IRR) Total value = 3.4 m
Since 50% equity financed; 1.7 m will go towards retained earnings leaving 0.8 m paid out as dividend
Pay out ratio = 0.8/2.5 = 0.32

13) Flotation cost gets subtracted from market price of share, then normal stuff:
0.123 = 0.4(0.11)(1-t)+0.1(1/9)+0.5(14/85)
Solve for t

14) 1.2x0.4 = 0.48
Net income = (2M-5x0.1 - 0.48Mx0.1) x (1-0.4) = 871200
Dividends = 871200 - 0.72M
Ratio = (871200 - 0.72M)/871200 = 0.174
 

4025808

Well-Known Member
Joined
Apr 2, 2009
Messages
4,377
Location
中國農村稻農
Gender
Male
HSC
2011
Uni Grad
2017
11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391
Re = 0.05 + 1.3391(0.06)=0.1303

12) WACC = 0.1075 .:. Accept V, W and X (WACC > IRR) Total value = 3.4 m
Since 50% equity financed; 1.7 m will go towards retained earnings leaving 0.8 m paid out as dividend
Pay out ratio = 0.8/2.5 = 0.32

13) Flotation cost gets subtracted from market price of share, then normal stuff:
0.123 = 0.4(0.11)(1-t)+0.1(1/9)+0.5(14/85)
Solve for t

14) 1.2x0.4 = 0.48
Net income = (2M-5x0.1 - 0.48Mx0.1) x (1-0.4) = 871200
Dividends = 871200 - 0.72M
Ratio = (871200 - 0.72M)/871200 = 0.174


holy shit question 11 was a repeated question from the practice papers :/

Anyway, gonna start the 2006 paper now
 

brachester

Member
Joined
Sep 25, 2011
Messages
166
Gender
Male
HSC
2011
holy shit question 11 was a repeated question from the practice papers :/

Anyway, gonna start the 2006 paper now
repeated question as in they copied and paste from the practice question or just similar?
 

DforDANNY

Member
Joined
Jun 10, 2009
Messages
123
Gender
Male
HSC
2011
Uni Grad
2015
11) B (levered) = B (unlevered)(1+(1-t)(D/E))= 0.9565(1+(0.6)(0.4/0.6))=1.3391
I swear I've never seen (Or I don't recall) any material in lectures/textbook about the relationship of the betas between an unlevered firm and the levered firm
 

DforDANNY

Member
Joined
Jun 10, 2009
Messages
123
Gender
Male
HSC
2011
Uni Grad
2015
just type it up on the internet.
What I'm trying to say is that I don't think that's going to be in tomorrow's finals given that we (sem2 2012) have never covered such material.
 

4025808

Well-Known Member
Joined
Apr 2, 2009
Messages
4,377
Location
中國農村稻農
Gender
Male
HSC
2011
Uni Grad
2017
copy and paste.

_______________________

far out, how does one get Q5 and 6 of the 2006 paper =_=
oh wait nvm i found why for Q6. but for Q5.

As for Q5, for after tax salvage value, do they include the total cost of depreciation (i.e the 1 million dollars been depreciated every year) into finding what the after tax salvage value is?
 

halapenyo

Active Member
Joined
Dec 10, 2011
Messages
1,200
Gender
Male
HSC
2011
What I'm trying to say is that I don't think that's going to be in tomorrow's finals given that we (sem2 2012) have never covered such material.
good point. hopefully it isnt. i saw some other questions in past papers relating to covariance which we havent done.
 

4025808

Well-Known Member
Joined
Apr 2, 2009
Messages
4,377
Location
中國農村稻農
Gender
Male
HSC
2011
Uni Grad
2017
good point. hopefully it isnt. i saw some other questions in past papers relating to covariance which we havent done.
hehehe we covered that in ACTL1001 :p

but if they were to cover covariance, then they'd try as hard to give us formulas for that...
 

Omnipotence

Kendrick Lamar
Joined
Feb 7, 2009
Messages
5,327
Location
Sydney
Gender
Male
HSC
2011
Uni Grad
2016
hehehe we covered that in ACTL1001 :p

but if they were to cover covariance, then they'd try as hard to give us formulas for that...
yeah they tell you its the variance over the expected return or some shit
 

Omnipotence

Kendrick Lamar
Joined
Feb 7, 2009
Messages
5,327
Location
Sydney
Gender
Male
HSC
2011
Uni Grad
2016
I swear I've never seen (Or I don't recall) any material in lectures/textbook about the relationship of the betas between an unlevered firm and the levered firm
same with DTL equation no idea what the fuck that was on
 

4025808

Well-Known Member
Joined
Apr 2, 2009
Messages
4,377
Location
中國農村稻農
Gender
Male
HSC
2011
Uni Grad
2017
Btw anyone help me on Q13 of the 2006 S1 paper. I don't seem to be getting any of the answers, which is ironic :/

Are the flotation costs relevant to the question? :O
 
Last edited:

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top