ACC501-Business Finance Midterm Subjective Paper May-2012

ACC501-Business Finance Midterm Subjective Paper May-2012

• Aslam will receive Rs.30,000 after 5 years at a discount rate of 12 percent what is the present value of this amount to Aslam (3).

• Calculate the price of a share of stock of ABC Corporation if it pay Rs. 21 per share dividend every year the policy continuous indefinitely and required rate of return is 25%(3).

• Shahid is planning to save amount for future suggest him the effective option from the flowing different Bank on saving account

               Bank A = 16.5% compounded quarterly
               Bank A = 16.75% compounded quarterly (5)

• ABC company bound have face value of 8,000 and promised annual coupon of Rs.880 the bound return in 12 years. Determine the current value of bound if present market condition justify a 13% required rate of return is this a premium bound or discreet bound (5).