Test Bank for Financial Management Concepts and Applications 1st Edition by Stephen Foerster.

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ISBNg978-1-84808-324-0

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, Aboutgthegpaper i - v
Question
Topic Name Marks PagegNumbers
gnumber

Question Solution
gbank gbank


Section A g FinancialgManagementgFunction
1 10 1g-g1 59g-g59
EPSgandgShareholdergwealthgmaximi
2 JJGgCo 25 1g-g2 60g–g62
sation
3 Multiplegstakeholders 10 2g-g2 63g-g64

Section B g FinancialgManagementgEnvironment
4 Financialgmanagementgenvironment Tagna 25 3g-g3 65g–g66
5 Financialgintermediary 10 4g-g4 67g-g67
6 Rolegofgfinancialgintermediaries APXgCo 25 4g-g5 68g-g70
7 Banksgandgmoneygmarkets 10 5g-g5 71g-g71

Section C g WorkinggCapitalgManagement
8 EOQgandgreceivablesgmanagement AsifcogInc 25 7g-g8 73g–g75
9 FactoringgandgInvoicegdiscounting HudsongLtd 25 8g-g8 76g–g78
Workinggcapitalgmanagementgandgfac
10 AnjogLtd 25 9g-g10 78g–g 80
toring
11 Foreigngreceivablesgmanagement SprintergPlc 25 10g–g11 80g–g81
12 Discountgpolicygforgpromptgpayment AresgLtd 25 11g–g12 82g–g83
13 Earlygsettlementgdiscount PNPgLtd 25 12g–g12 83g–g85
14 Earlygsettlementgdiscount VelmgCo 25 13g–g13 85g–g87
15 CashgbudgetgandgBaumolgmodel ThornegCo 25 14g-g14 88g–g89
16 EOQgandgFactoring FLGgCo 25 14g–g15 90g–g94
17 Overtradinggandgfactoring DoegLtd 25 15g–g16 94g–g97
EOQg&ghedginggforeigngaccountsgpay
17 PKAgCo 25 17g–g17 97g–g100
able
19 EOQgmodel TNGgCo 25 17g–g18 100g–g102

Section D g InvestmentgAppraisal
20 Proposedginvestmentg-gNPVgandgIRR CharmgInc 25 19g–g19 103g–g105
21 Specificginvestmentgdecisiong-gNPV LeamingergInc 25 20g–g20 105g–g108
22 NPVgandgIRR PVgCo 25 21g-g21 108g–g110
23 NPVgandgIRR DuogCo 25 21g-g22 111g–g113
24 Proposedginvestmentg-gNPVgandgIRR ParadisegLtd 25 22g-g23 113g–g115
25 NPVgandgprojectgevaluationgstages BasrilgInc 25 23g–g24 115g–g117
26 Netgpresentgvalue PainlessgCo 25 24g–g24 117g–g118
Bramblingg(Electronic
27 Sensitivityganalysis 25 25g–g25 118g–g120
sgLtd)
28 Sensitivityganalysis UmunatgLtd 25 26g-g26 120g–g122
29 NPVgandgProposedgInvestment SCgCo 25 26g-g27 122g–g124
30 3Financinggcashgflows ASOPgCo 25 27g-g27 125g–g127

, Section E g BusinessgFinance
Financegforgsmallgandgmediumgsized
31 LaviniagproductsgLtd 25 29g-g30 129g–g131
gentities

32 Rightsgissue SmithgLtd 25 30g-g30 131g–g134
Evaluationgofgagnewgfinancialgpropo
33 ArwingLtd 25 31g-g31 134g–g138
sal
34 Sourcesgofgfinance McTeegPlc 25 32g-g33 138g–g141
35 Rightsgissuegofgshares TranscogLtd 25 33g–g33 141g–g143
36 Evaluationgofgsourcesgofgfinance EchogCo 25 33g–g34 143g–g147
37 Sourcesgofgfinance TirwengLtd 25 35g-g35 147g–g150
38 Ratioganalysisgandgsourcesgofgfinanc TFRgLtd 25 36g–g36 150g–g152
e
39 Shortgtermgfinance 10 36g–g36 153g–g153
40 Islamicgfinance 20 36g-g36 154g–g155
41 DividendgPolicy AnafigCo 25 37g-g37 155g–g156

Section F g CostgofgCapital
42 ModiglianigMillerg&gcapitalgstructure NereusgandgJanusgLtd 25 39g–g39 157g–g158
43 Costgofgcapital PiringCo 25 40g–g41 158g–g160
44 ModiglianigMillerg&gcostgofgcapital GurwingLtd 25 41g–g42 161g–g162
45 Capitalgassetgpricinggmodelg(CAPM) RupabgCo 25 42g–g42 162g–g164
46 Costgofgcapital SelwyngLtd 25 42g-g43 164g–g165
Weightedgaveragegcostgofgcapitalg(W
47 PolstrongLtd 25 43g-g43 166g–g168
ACC)
48 Capitalgstructure ReliablegLtd 25 44g-g44 168g–g171
49 Costgofgcapitalgandgdividendgpolicy DDgCo 25 45g-g45 172g-g174

Section G g BusinessgValuations
50 Businessgvaluations GreenwoodgLtd 25 47g–g47 175g–g177
StanzialgIncgandgBess
51 Valuationgmethod 25 48g–g49 177g–g180
erlotgLtd
OaktongIncgandgMalla
52 Businessgvaluation 25 49g-g50 180g–g182
rdgInc
53 Valuationgofgshares SomervillegLtd 25 50g-g51 183g–g184
OlivinegLtdgandgHaliteg
54 Businessgvaluations 25 52g–g53 184g–g186
Ltd
Valuationgofgbusiness/convertiblegb PhobisgCogandgDano
55 25 53g-g53 186g-g189
ond cagCo
56 Valuationgofgconvertiblegdebentures Techfools.com 25 54g-g54 189g–g191