Question $1=$ Primarily on CLO $3,$ valued at $20$ marks.

Explain the mechanics of simple and compound interest and how money grows over time. The Time Value of Money.

Determine present and future value of a sum

Define ordinary annuities and calculate its

compound value or future value

Describe the relationship between risk and return

Calculate Yield to Maturity $($YTM$)$

Explain investment diversification, portfolio risk

analysis, and CAPM

Bond valuation calculations

Valuing preferred stock

Valuing common stock

$$ Calculate Stockholder$$s expected rate of return

Question $2=$ Primarily on CLO $4$ & $3,$ valued at $20$ marks.

$$ Determine capital$-$budgeting evaluation criteria $$ Payback, NINV, NPV$,$ PI$,$ IRR $$ for use in capital budgeting decisions$/$project net investment determination

$$ Determine cash flows for use in capital budgeting

$$ Stock price valuation and expected rate of return

Question $3=$ Primarily on CLO $5$ & $3,$ valued at

$20$ marks.

$$ Describe and compute a firm$$s cost of capital including computation of the WACC

$$ Discuss reasons for carrying inventory and how inventory decisions are made$/$Calculate Economic Order Quantity $($EOQ$)$

$$ Investment decisions based on coefficient of variation financial management final exam