FIN 無料問題集「CPA Finance」
A company has convertible loan notes in issue which are due for redemption or conversion in exactly in two years. The interest received on the convertible loan notes is 8% and the investors require a yield of 10%. The convertible loan notes will be converted for 30 shares or redeemed at $105 per $100. The company's shares are currently trading at $3.30 per share.
What is the current market value of the convertible loan notes? (To the nearest $ and ignoring taxation)
What is the current market value of the convertible loan notes? (To the nearest $ and ignoring taxation)
正解：A
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A company has $500,000 available for investment and is considering the following four divisible, but not repeatable, projects to invest in:
Initial outlayNet present valueProfitability Index Project One$300,000$60,0001.20 Project Two$100,000$40,0001.40 Project Three$200,000$50,0001.25
Project Four$150,000$45,0001.30
What is the maximum net present value the company can generate from its investment?
Initial outlayNet present valueProfitability Index Project One$300,000$60,0001.20 Project Two$100,000$40,0001.40 Project Three$200,000$50,0001.25
Project Four$150,000$45,0001.30
What is the maximum net present value the company can generate from its investment?
正解：A
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Arcturus Co has recently purchased goods costing $12,000 from a supplier. The supplier has offered credit terms of 3/15, net 40. If a cash discount is taken, payment will be made on the last possible day. The opportunity cost of funds for Arcturus Co is 30%.
What is the net saving, or net cost, at the normal time of payment of taking a cash discount?
What is the net saving, or net cost, at the normal time of payment of taking a cash discount?
正解：D
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The shares of Derwent Co and Plym Co have beta values of 0*5 and 1*2 respectively.
The expected rate of return for Derwent Co investors is 9% and the expected return to the market is 12%.
Using the Capital Asset Pricing Model, what is the expected rate of return for investors in Plym Co?
The expected rate of return for Derwent Co investors is 9% and the expected return to the market is 12%.
Using the Capital Asset Pricing Model, what is the expected rate of return for investors in Plym Co?
正解：A
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Aralia Co and Corylus Co both pay a constant dividend of $0.30 per share. Aralia Co has a beta of 1.2 and Corylus Co has a beta of 0.9. The market share price of Aralia Co is $3.70 and the market share price of Corylus Co is $3.80.
The market rate of return is 8% and the risk free rate is 5%.
Based on the Capital Asset Pricing Model (CAPM) analysis, which ONE of the following combinations (underpriced/overpriced) concerning the market price of the shares of Aralia Co and Corylus Co is correct?
The market rate of return is 8% and the risk free rate is 5%.
Based on the Capital Asset Pricing Model (CAPM) analysis, which ONE of the following combinations (underpriced/overpriced) concerning the market price of the shares of Aralia Co and Corylus Co is correct?
正解：C
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Napa Co has 100 million $0*25 ordinary shares in issue with a current market value of $1*20 per share. The cost of ordinary shares is estimated at 12%. The company also has $100 million 6% irredeemable loan notes in issue that are currently quoted at $60 per $100 nominal value. The tax rate is 20%.
What is the weighted average cost of capital for Napa Co?
What is the weighted average cost of capital for Napa Co?
正解：A
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