F3 무료 덤프문제 온라인 액세스

Which THREE of the following statements are correct in respect of the issuance of debt securities.

• A.Governments are the most frequent issuers of bonds and the proceeds are used to fund government expenditure or service the national debt.
• B.A corporate entity coming to the bond market for the first time will find it easier to issue corporate bonds than to arrange a conventional term loan.
• C.Investors in traded bonds have an ownership (or equity stake) in the company which issued the bonds.
• D.The redemption yield on a corporate bond can be determined by calculating the internal rate of return based on the cash flows arising during the duration of the bond.
• E.A bond issuer must appoint at least one market-maker to ensure that there is a liquid market in its traded bonds.

A company has:
* 10 million $1 ordinary shares in issue
* A current share price of $5.00 a share
* A WACC of 15%
The company holds $10 million in cash. No interest is earned on this cash.
It will invest this in a project with an expected NPV of $4 million.
In a semi-strong efficient stock market, which of the following is the most likely share price immediately after the announcement of the new investment?

• A.$6.40
• B.$5.40
• C.$6.80
• D.$5.30

A company is currently all-equity financed.
The directors are planning to raise long term debt to finance a new project.
The debt:equity ratio after the bond issue would be 40:60 based on estimated market values.
According to Modigliani and Miller's Theory of Capital Structure without tax, the company's cost of equity would:

• A.increase or decrease depending on the bond's coupon rate.
• B.decrease.
• C.stay the same.
• D.increase.

Which THREE of the following are likely to be strategic reasons for a horizontal acquisition?

• A.Reduction of risk by building a larger portfolio
• B.To achieve economies of scale
• C.To secure key parts of the value chain
• D.Acquisition of an undervalued company
• E.Reduction of competition

A company is considering whether to lease or buy an asset.
The following data applies:
* The bank will charge interest at 7.14% per annum
* The asset will cost $1 million
* Tax-allowable depreciation is available on a straight line basis over 5 years
* There is no residual value
* Corporate tax is paid at 30% in the year when the profit is earned
What is the NPV of the buy option?
Give your answer to the nearest $000.