TRƯỜNG ĐẠI HỌC NGOẠI NGỮ - TIN HỌC ĐỀ THI KẾT THÚC HỌC PHẦN

THÀNH PHỐ HỒ CHÍ MINH BẬC ĐẠI HỌC / CAO ĐẲNG – HỆ CHÍNH QUY
KHOA QUẢN TRỊ KINH DOANH Học kỳ 1 Năm học 2024 – 2025
_________ Khóa 2022
ĐỀ CHÍNH THỨC
(Đề có 5 trang) Môn: TÀI CHÍNH DOANH NGHIỆP
Thi theo hình thức tiểu luận

INSTRUCTIONS
1. Read the instructions carefully.
2. This assignment will be performed in group of 3 or less.
3. Read the question and then its requirement.
4. For all question, only handwritten answer is acceptable.
First: Solve all questions by hand, scan it, and convert into PDF. Upload the PDF on the
Moodle. Word files or any other format, versions will not be acceptable. Deadline is WEEK
13th
Second: Bring the handwritten answer, go to Hoc Mon Campus and sign the name
5. Do not copy or share your solution with anyone. Don’t use more than 10 words per
sentence, please use formular and number.
6. Do not wait for the last minute, submit the assignment well before the deadline.
7. The submission file name will be “your name and group members”. For example: Nguyen
A T-Nguyen A B-Nguyen C-D
8. Late submissions are not allowed.
9. You will be awarded “ZERO” marks if you fail to submit the assignment within the
deadline.
10. Make sure you upload the correct file.
11. Once submitted, no changes/ resubmissions are allowed.
PART A: THERE ARE TEN (10) QUESTIONS, CHOOSE 7 OUT OF 10
(50 MARKS)

1. Suppose that you are interested in buying the stock of a company that has a policy of
paying a $6 per share dividend every year. Assuming no changes in the firm’s
policies, what is the value of a share of stock if the required rate of return is 11
percent?
(7 marks)
2. A share of common stock currently sells for $110. Current dividends are $8 per share,
and are expected to grow at 6 percent per year indefinitely. What is the rate of return
required by investors in the stock?
(7 marks)
3. The Phoenix bond has a current price of $800, a maturity value of $1,000, and
matures in 5 years. If interest is paid semi-annually and the bond is priced to yield
8%, what is the bond's annual coupon rate?
(7 marks)
4. The Yellow Grass bond has an 8% coupon rate (semi-annual interest), a maturity
value of $1,000, matures in 5 years, and a current price of $1,200. What is the
company's current yield and yield-to-maturity (YTM)?
(7 marks)
5. Your company has an opportunity to invest in a project that is expected to result in
after- tax cash flows of $8,000 the first year, $10,000 the second year, $13,000 the
third year, $8,000 the fourth year, $20,000 the fifth year, and $26,000 the sixth year.
The project would cost the firm $59,000. If the firm's cost of capital is 13%, what is
the internal rate of return for the project?
(8 marks)
6. On January 2, 2009, Sanchez paid $18,000 for 900 shares of common stock in Aztec
Corporation. Sanchez received an $.80 per share dividend on the stock at the end of
each year for 4 years. At the end of 4 years, he sold the stock for $22,500. Sanchez
has a goal of earning a minimum return of 12% on all of his investments. Did he earn
a 12% return on the stock?
(8 marks)
7. You are managing a portfolio of 10 stocks that are held in equal dollar amounts. The
current beta of the portfolio is 1.8, and the beta of Stock A is 2.0. If Stock A is sold
and the proceeds are used to purchase a replacement stock, what does the beta of the
replacement stock have to be lowered the portfolio beta to 1.7?
(7 marks)
8. Consider the information below for Platinum Investment Fund, with a total
investment of 4 million. The market required rate of return is 12 percent, and the risk-
free rate is 6 percent. What is its required rate of return?

Stock Amount ($) Beta

I 400,000 1.2

II 600,000 -0.4

III 1,000,000 1.5

IV 2,000,000 0.8
 (7 marks)
9. Stock A has a beta of 1.2, Stock B has a beta of 0.6, the expected rate of return on an
average stock is 12 percent, and the risk-free rate of return is 7%. What is the
difference between the required return on the riskier stock and that on the less risky
stock?
(7 marks)
10. Determine the net present value, internal rate of return and the profitability index for a
project that costs $253,494.00 and is expected to yield after-tax cash flows of $29,000
per year for the first ten years, $37,000 per year for the next ten years, and $50,000
per year for the following ten years. Your firm's cost of capital is 12.00%.
(8 marks)

PART B: THERE ARE EIGHT (8) QUESTIONS, 5 MARKS EACH

QUESTION, CHOOSE 4 OUT OF 8 (20 MARKS)

1. A money manager is holding the following portfolio:

Stock Amount Invested ($) Beta

1 300,000 0.6
2 300,000 1.0
3 500,000 1.4
4 500,000 1.8

The risk-free rate is 6 percent and the portfolio’s required rate of return is 12.5
percent. The manager would like to sell all of her holdings of Stock 1 and use
the proceeds to purchase more shares of Stock 4. What would be the portfolio’s
required rate of return following this change?
(5 marks)
2. You are currently evaluating two investment opportunities with the following
probability of annual returns:

Asset A Asset B
Rate of Return Probability Rate of Return Probability
(%) (%)
10 0.3 5 0.4
15 0.4 15 0.2
20 0.3 25 0.4

If you are a risk-averse type of person, which asset will you choose? Why?
(5 marks)
3. Merdeka Bhd. can purchase equipment on sale for $4,300. The asset has a three- year
life, will produce a cash flow of $1,200 in the first and second year, and $3,000 in the
third year. The cost of capital is 12%. Calculate the project's internal rate of return
(IRR) and net present value (NPV). Should the project be taken? Explain your
answer.
(5 marks)
4. You are planning to purchase a house with a price of $300,000. You will pay a down
payment of 10% and the remaining will be financed by bank loan. If the bank charges
you interest rate of 10% compounded monthly and the loan period is 30 years, what
will be your monthly installments?
(5 marks)
5. A relatively young firm has capital components valued at book and market and the
market component costs are as follows. No new securities have been issuedb since the
firm was originally capitalized.

Component Market Value Book Value Market Cost

Debt $42,830 $40,000 8.5%
Preferred Stock $10,650 $10,000 10.6%
Common Equity $65,740 $32,000 25.3%

Calculate the firm's capital structures and WACCs based on both book and market
values.
(5 marks)
6. Harum Bhd's bonds are selling with a yield of 9%. The firm plans to sell new bonds to
the general public and will therefore incur flotation costs of 6%. The company's
corporate tax rate is 42%. What is Harum Bhd's cost of debt with respect to the new
bonds?
(5 marks)
7. The Blue Moon's stock is selling for $52. Its last dividend was $4.50, and the firm is
expected to grow at 7% indefinitely. Flotation costs associated with the sale of
common stock are 10% of the proceeds raised. Estimate Blue Moon's cost of equity
from retained earnings and from the sale of new stock.
(5 marks)
8. A portfolio consists of the following four stocks:

Current Expected
Stock Market Value Return
A $180,000 8%
B $145,000 10%
C $452,000 12%
D $223,000 5%
$1,000,000

What is the expected return of the portfolio?

A four-stock portfolio is made up as follows:

Stock Value Beta

A $4,500 .8
B $ 2,900 .6
C $ 6,800 1.3
D $ 1,200 1.8

Calculate the portfolio's beta.

(5 marks)
 PART C: THERE ARE SIX (6) QUESTIONS, 10 MARKS EACH
QUESTION, CHOOSE 3 OUT OF 6 (30 MARKS)

1. Sasha Company has a level-coupon bond with a 9% coupon rate; interest is paid annually.
The bond has 20 years to maturity and a face value of $1,000; similar bonds currently
yield 7%. By prior agreement the company will skip the coupon interest payments in
years 8, 9, and 10. These payments will be repaid, without interest, at maturity. What is
the bond's value?
(10 marks)
2. Mont_Blenk company has issued 20-year bond 5 years ago with a par value of $1,000 and
promised a coupon rate of 5% paid twice a year. If the market interest rate of bonds with
similar risk level with this company’s bond is 6%, what is the current market value of this
bond?
(10 marks)
3. Orakuten Bhd has issued bonds with a par value of $1,000 and a maturity period of three
years. The yearly coupon rate offered is 10%. Global Rating Agency (GRA) has given a
rating of AAA to the bonds of Orakuten Bhd. If the bonds were sold at the price of $980,
what is the yield to maturity (YTM) of the said bond?
(10 marks)
4. Maggie Toys Company reported a debt-to-equity ratio of 1.75 times at the end of 2013. If
the firm’s total assets at year-end were $25 million, how much of their assets are financed
with debt and how much with equity?
(10 marks)
5. Mick’s Tour Service has asked you to help piece together financial information on the
firm for the most current year. Managers give you the following information:

Sales = $4.8 million, Total Debt = $1.5 million, Debt Ratio = 40%, ROE = 18%.

Using this information, calculate Mick’s return on asset (ROA).

(10 marks)
6. The table below shows the first few lines of the amortization schedule for a many-year
loan with monthly repayments at the end of each month (just like the mortgage
spreadsheet we looked at in class). The initial borrowing (t=0) is $400,000. The first
repayment (of $5,175.90) is made at the end of the first month. Please show the
calculation for the remaining column and blank.
(10 marks)

T Beginning End of month Monthly Principal Ending

Principal payment Interest Repaid Principal
0 $400,000.00 $5,175.90 $3,166.67
1 $397,990.76 $5,175.90 $3,150.76
2 $5,175.90 $3,134.73
3 $5,175.90 $3,118.57

THE END