| Category |
Assignment |
Subject |
Management |
| University |
Universiti Tun Abdul Razak |
Module Title |
GFIN5113 Financial Management & Economics |
Set A: Financial Management (GFIN5113)
Total Marks: 50 | Duration: 1–2 hours
Questions
- Explain the concept of Time Value of Money (TVM) and demonstrate it using an example involving compound interest. (6 marks)
- Given the following data, calculate the Net Present Value (NPV) of a project with an initial investment of RM50,000 and expected cash inflows of RM15,000 annually for 5 years. Use a discount rate of 10%. (8 marks)
- Critically evaluate the Modigliani-Miller theorem on capital structure in the presence of taxes. (7 marks)
- Calculate the Weighted Average Cost of Capital (WACC) for a firm with the following data:
Equity = RM300,000, Cost of equity = 12%
Debt = RM200,000, Cost of debt = 6%
Corporate tax rate = 25% (7 marks)
- Differentiate between systematic and unsystematic risk in portfolio theory. Provide examples and implications for diversification. (6 marks)
- Discuss two key strategies for managing working capital in a manufacturing firm. (6 marks)
- Briefly explain how Islamic Finance principles can be integrated into corporate financial decision-making. (4 marks)
Set B (Second): Financial Management (GFIN5113)
Total Marks: 50 | Duration: 1-2 hours
Questions
- Explain how annuities work and distinguish between ordinary annuities and annuities due with examples. (6 marks)
- Calculate the value of a bond with a face value of RM1,000, a 5% coupon rate (annual), 4 years to maturity, and a market rate of 6%. (8 marks)
- Critically discuss the trade-off theory in capital structure decisions and how it applies to real firms. (7 marks)
- A company is considering two investment projects. Project A has a Payback Period of 2.5 years and an IRR of 14%, Project B has a Payback Period of 3.5 years and an IRR of 16%. Which project should be selected and why? (7 marks)
- Discuss the key components of the cash conversion cycle and their importance in working capital management.
- Compare and contrast the dividend irrelevance theory and the bird-in-hand theory.
- Describe two derivative instruments used in risk management and provide one example each.
