Question 1: Explain what CAPM stands for and how it operates. In your answer discuss the importance and significance of systematic and nonsystematic risks?

Question 2 Describe what capital structure means and explain its different components. In your answer outline the various types of debt and equity and what distinguishes them.

Question 3 Why is bond valuation more straightforward than share valuation. In your answer explain the cash flows associated with each and the methods used to compute the price of each.

Question 4 Define "Financial Value". Explain how this definition leads to the various mathematical methods that are employed to estimate the financial value of investment securities. In your answer you may examine the impact of risk and uncertainty in determining a result.

Question 5 What is the ultimate financial goal of a company? In your answer you may include descriptions of the various possible goals of a company to demonstrate which is the most important.

Question 6 List the various financial performance measures that can be applied to assessing the worth of capital assets. Explain their respective strengths and weaknesses.

Question 7 Outline the strategies available for evaluating the impact of uncertainty on discounted cash flow evaluation of capital budgeting decisions.

Question 8 What is the cost of capital? How is if evaluated? What other considerations need to be considered in its adoption?

Question 9 How are companies floated? Describe the process and various strategies for selling the initial company shares into the market and the various costs and players involved.

Question 10 Shareholders expect companies to distribute their profits through dividends. Is the payment of dividends as simple as this? Describe and evaluate the approaches and considerations that companies take into account before choosing to pay out their profits as dividends to shareholders.

Question 11 Debt is a complex contributor to capital structure. Outline the influence of debt on the financial objectives of the firm with special focus on the propositions of Modigliani and Miller.