Đề thi cuối kì LTCC 2021 (English ver - TCHE)

FACULTY OF BANKING AND FINANCE FINAL EXAM PAPER PRINCIPLES OF FINANCE (TCHE302) DIVISION : MONEY AND BANKING __________________________________ Phase 2 Semester 2 Academic year: 2020 – 2021 Duration: 50 minutes (not include paper submit time) 1. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant? 2. If the price of underlying asset is predicted to decrease in the future, which option strategy is most profitable? Explain 3. In a Treasury auction of 2.1 billion USD par value 91-day T-Bills, the following were submitted: Bidder Bid Amount Rate A 500 mil. USD 2.2% B 750 mil. USD 2.8% C 1100 mil. USD 2.7% D 900 mil. USD 2.5% E 600 mil. USD 2.4% If only these competitive bids are received, who will receive T-Bills, in what quantity? 4. a. Bond X has a face value of 10,000 USD and matures in 10 years. The bond makes no payments for the first 3 years, then pay 780 USD annually over the last 7 years. Compute the bond’s market price if the market interest rate is 7%/year during the bond life? b. Bank A pays 9% interest, compounded semi-annually on its money market account. The managers of Bank B want its money market account to equal Bank A’s effective annual rate, but interest is to be compounded on a monthly basic. What nominal rate must Bank B set? 5. Refer to the financial statements of Violet Company. a. Calculate: Net Income, current ratio, average collection period, asset turnover ratio, Operating Profit Margin, ROA, b. Break down ROE into its 3 component parts using the Dupont identity c. Why is the Du Pont identity a valuable tool for analyzing the performance of a firm? Income Statement (2019) (Unit: dollar) Sales $2,800,000 Cost of goods sold (COGS) 1,460,000 Selling and Administrative Expenses 750,000 Operating Profit 590,000 Interest Expenses 170,000 Income before tax 420,000 Tax rate 25% ? 1 Net Income ? Balance Sheet (2019) (Unit: dollar) Cash 52,000 Account Payable 180,000 Accounts Receivable 470,000 Short-term Loan 460,000 Inventory 285,000 Total current liabilities 640,000 Total Current Assets 807,000 Bonds payable 847,000 Fixed Assets 2,020,000 Total Liabilities 1,487,000 Equity 1,340,000 Total Liabilities & Equity 2,827,000 Total Assets 2,827,000 --------------------------------------End of test-------------------------------------Note: - This paper contains 35 questions from Section A, 3 question from Section B, 4 pages total - Students must not use any material during the examination. 2 - Invigilators will not provide further explanation. EXAM PAPER APPROVAL HEAD OF DEPARTMENT Invigilator 1 Invigilator 2 Examiner 1 Examiner 2 3