FIN101

Q1) You own 5,000 shares Split. The shares are currently selling for $75. If the company has just announced a 4-for-1 stock split, How many shares will you own after the split?

a.10,000 b. 20,000 c. 15,000 d. 5,000

Q2)

You would like to own shares that have a record date on Thursday 22 March 2020. What is the last date that you can purchase the share and still receive the dividend?

	a.	22 march
	b.	20 march
	c.	19 march
	d.	21 march

Q3)

Sohas company is taking a project that will produce $2,800,000 of revenue per year. Cash expenses will be $400,000, and depreciation expenses will be $250,000 per year. The firm is in the 40 percent marginal tax rate. If the firms capital expenditures will be $420,000 and the additional working capital $350,000.

	a.	$680,000
	b.	$520,000
	c.	$700,000
	d.	$770,000

What is cost of equity capital of a firm if the market risk premium is 8%, the risk-free rate return is 5.4% and a beta of 1.2?

	a.	14.5%
	b.	12.5%
	c.	13.5%
	d.	15%

Q4 )

What is cost of equity capital of a firm if the market risk premium is 8%, the risk-free rate return is 5.4% and a beta of 1.2?

	a.	14.5%
	b.	12.5%
	c.	13.5%
	d.	15%