MGT-402 Financial Management_Subjective Questions

MGT-402 Financial Management

54 MCQs and 5 Subjective Questions

1. Mergers are beneficial or harmful? 3
2. EBIT of a firm is Rs. 200 and corporate tax rate, Tc is 30 %. If the firm is 100% Equity and rE is 20%. Then calculate WACC. 5
3. Find the beta on a stock given that its expected return is 16% risk free rate is 4%, expected return on Market Portfolio is 12%. 5
4. Risk free Rate is 15% and expected Market Return is 20%. FM Corporation has a bet of 1.9 and Gold Corporation has beta of 1.5. Find Expected Return on FM Corporation and Gold Corporation. 10
5. EBIT of a firm is Rs. 100, Corporate Tax is 35%

· Equity is 100% and rE is 20%

· Debt is 100% and Interest is 10%

Find WACC. 10