QUESTION 1 [Total 4 marks]
問題1[4分]

(a) Explain what is meant by the market capitalisation of a listed company.
(1 mark)
解釋上市公司的市值是什么意思。（1分）
(b) If a company has 10,000,000 ordinary shares on issue with a current market price of
$1.50 per share, calculate the market capitalisation of the company.(1 mark)
如果一家公司發行的10,000,000股普通股，與目前的市場價格每股1.50美元，該公司的市值計算。（1分）
(c) On the Australian share market, explain briefly why the market capitalisation of most
companies decreased in 2008.(2 marks)
于澳大利亞的市場份額，簡要解釋為什么在2008年大部分的市值公司減少。（2分）

QUESTION 2 [Total 5 marks]
問題2[5分]
http://ukthesis.org/Thesis_Writing/Finance

Consider a share investment which has four possible returns : -5%, -2%, 5%, 10%.
考慮A股投資有四種可能的回報：-5％，-2％，5％，10％。
The probability of each of these returns occurring is respectively : 0.4, 0.1, 0.2, 0.3.
發生這些回報的概率分別為0.4，0.1，0.2，0.3。
(a) What is the expected return for the investment? (2 marks)
什么是預期的投資回報？ （2分）
(b) What is the risk of the investment? (3 marks)
投資的風險是什么？ （3分）

QUESTION 3 [Total 10 marks]
問題3[共10分]

The rate of return for bonds issued by the Australian Commonwealth Government Treasury is given as 5% per annum. The return for the Australian share market is given as 12% per annum. Suppose a listed company has a beta value of 1.5.
由澳大利亞聯邦政府財政部發行的債券的回報率定為每年5％。澳大利亞的市場份額以每年12％的回報。假設一家上市公司的beta值為1.5。
State the risk-free rate of interest. (1 mark)
國家無風險的利率。 （1分）
(a) Calculate the market premium. (1 mark)
計算的市場溢價。 （1分）
(b) Calculate the investors’ required rate of return for the company’s shares.(4 marks)
計算投資者要求公司的股份的回報率。（4分）
(d) Explain how the All Ordinaries Index can be used to estimate the market return of the
Australian share market. (2 marks)
解釋所有普通股指數可以用來估計市場的回報澳大利亞的市場份額。 （2分）
(e) Explain why Australian Commonwealth Government Treasury Bonds are considered to be
risk-free. (2 marks)
解釋為什么澳大利亞聯邦政府國債被認為是無風險。 （2分）

QUESTION 4 [Total 8 marks]
問題4 [共8分]

Consider a corporate bond with a par value of $1,000 that will mature in 10 years. You are given that the investors’ required rate of return is 5% per annum.#p#分頁標題#e#
考慮公司債券，票面價值1000美元，將在10年內到期。您給投資者要求的回報率是每年5％。
(a) Calculate the coupon interest payments and the price of the bond if the coupon
interest rate is 4% per annum, paid annually.(3 marks)
計算的息票利息付款和債券價格，如果優惠券利率為每年4％，每年付息一次。（3分）
(b) Calculate the coupon interest payments and the price of the bond if the coupon
interest rate is 4% per annum, paid half-yearly.(3 marks)
計算的息票利息付款和債券價格，如果優惠券利率為每年4％，每半年支付。（3分）
(c) Explain why there is an inverse relationship between the price and yield for bonds.
(2 marks)
解釋為什么有債券的價格和收益率之間的反比關系。（2分）

QUESTION 5 [Total 4 marks]
問題5[4分]

Welles Ltd wants to sell preference shares at $7 per share. A very similar issue of preference shares having similar risk characteristics already on issue has a price of $3 per share and offers a dividend of $0.15 every year.
威爾斯有限公司希望出售優先股每股7美元。一個非常類似的問題，具有類似信用風險特征已發行的優先股每股3美元的價格，并提供每年0.15美元的股息。
(a) Calculate the investor’s expected rate of return for the current issue of preference
shares.(2 marks)
計算本期優先投資者的預期回報率股份。（2分）
(b) What dividend will Welles Ltd have to offer if the new preference shares to be issued
are going to sell?(2 marks)
什么樣的股息將于威爾斯有限公司所提供的，如果新的優先股將予發行要出售？（2分）

QUESTION 6 [Total 10 marks]
問題6[共10分]

Consider a company with the following capital structure:
考慮以下資本結構的公司：
Market Value Market Yield
市場價值市場回報率
Ordinary shares $2,000,000 16.00%
Preference shares $1,000,000 15.00%
Bonds $2,000,000 12.00%
(a) Calculate the after-tax weighted average cost of capital for the company. Assume a
company tax rate of 30%.(6 marks)
計算的稅后加權平均資本成本為公司。假設一個公司稅率為30％。（6分）
 (b) Using your answer to part (a), if the company had a proposed investment project with an internal rate of return of 15%, would you accept the investment project? Explain
your answer.(2 marks)
使用（a）部分的答案，如果該公司有一個建議的投資項目內部回報率15％，你會接受的投資項目嗎？說明你的答案。（2分）
(c) Explain what is meant by the operating (or business) risk of a company.(1 mark)
解釋何謂操作（或業務）的公司的風險。（1分）
(d) Explain what is meant by the financial risk of a company.(1 mark)#p#分頁標題#e#
解釋，一家公司的財務風險是什么意思。（1分）

QUESTION 7 [Total 9 marks]
問題7 [共9分]

The dividend payments for a listed company are expected to grow at 4% per year. Suppose the investor’s required rate of return is 10% per annum.
一家上市公司的股息支付，預計每年將增長4％。假設投資者要求的回報率是每年10％。

(a) Calculate the intrinsic value of a share in the company if this year’s dividend (the
current dividend) is $3 per share.(4 marks)
計算在該公司的股份的內在價值，如果今年的股息（目前的股息）為每股3美元。（4分）
(b) Using your answer to part (a), if the market price of a share in the company is $50,
would you buy shares in the company? Explain your answer.(2 marks)
使用（a）部分，如果你的答案在公司的股份的市場價格是50美元，你會購買該公司的股份？解釋你的答案。（2分）
(c) Calculate the intrinsic value of a share in the company if next year’s dividend is $3
per share.(3 marks)
計算的股份在公司的內在價值，如果明年的股息是3美元每股（3分）
BANK 2005: Study Period 2, 2010 Deferred and Supplementary Examination Page 5
2005年銀行：研究期間，2010年遞延補考5

QUESTION 8 [Total 32 marks]
問題8[共32分]

Consider two mutually exclusive investment projects, project A and project B. You are given project A has an expected life of 3 years and project B has an expected life of 9 years. Project A has expected future net cash flows in each of years 1-3 of $12,590. Project B has expected future net cash flows in each of years 1-9 of $6,625. The initial investment required for each project is $20,000. Assume a required rate of return of 15% per annum for each project.
考慮兩個互斥的投資項目，項目A和項目B項目有一個預期壽命為3年，項目B，有9年的預期壽命。項目已預期未來凈現金流量在年1-312590美元。項目B預計未來凈現金流量在1-9每個年6625美元的。每個項目所需的初始投資為20,000元。假設每年15％的回報率，每個項目所需。
(a) What is meant by the payback period of an investment project? Explain why the
payback period method is used as a risk-screening device in capital budgeting.(3 marks)
(b) Calculate the payback period for project A and for project B.(2 marks)
(c) Calculate the discounted payback period for project A and project B.(8 marks)
(d) Calculate the net present value (NPV) for project A and for project B.(4 marks)
(e) Calculate the internal rate of return (IRR) for project A and for project B.(2 marks)
(f) Is project A an acceptable investment project? Is project B an acceptable investment
project? Explain your answers.(2 marks)
(g) Calculate the equivalent annual annuity (EAA) for project A and for project B.#p#分頁標題#e#
(4 marks)
(h) Which project should be selected? Support your recommendation.(2 marks)
(i) When project risk is incorporated into the discount rate in capital budgeting, does this
increase or decrease the discount rate? Does the net present value increase or decrease
as a result of this? Explain your answers.(4 marks)
(j) Explain what is meant by capital rationing in capital budgeting.(1 mark)
BANK 2005: Study Period 2, 2010 Deferred and Supplementary Examination Page 6

QUESTION 9 [Total 10 marks]
問題9[10分]

Consider a company listed on the Australian share market where the shareholders are fully integrated with Australia’s dividend imputation system. The ordinary share price is currently $2.75 per share and the current fully franked dividend is $0.18 per share. Dividends are expected to grow at a rate of 7% per year. The company is considering a new issue of ordinary shares where 5% issue costs are anticipated. Assume a company tax rate of 30%.
考慮上市公司在澳大利亞的市場份額，股東與澳大利亞的股息歸集系統完全集成。目前普通股股價是每股2.75美元和，目前完全稅務減免股息為每股0.18美元。預期股息以每年7％的速度增長。該公司正在考慮發行新普通股，其中5％的發行成本預計。假定公司所得稅稅率為30％。
(a) What is the main advantage for shareholders of a dividend imputation system compared to a classical taxation system?(2 marks)
相比，一個經典的稅制為股東的股息歸集抵免制的主要優點是什么？（2分）
(b) Explain what is meant by a fully franked dividend.(1 mark)
解釋完全稅務減免股息是什么意思（1分）
(c) Is the company in this question a taxation category 1 or taxation category 2 company?
Explain your answer.(2 marks)
公司在這個問題上一個稅務類別1或稅項2類公司？解釋你的答案。（2分）
(c) Calculate the company’s cost of capital for the new issue of ordinary shares.(4 marks)
計算該公司的新發行普通股的資本成本（4分）
(e) Explain why it is cheaper for a company to raise equity finance using retained earnings rather than a new share issue.(1 mark)
解釋為什么它是便宜的公司使用留存收益，而不是一個新的股票發行籌集股本融資（1分）。

QUESTION 10 [Total 8 marks]
問題10 [共8分]

Suppose $1,000 is invested at the end of each year in perpetuity. The interest rate is 10% per year.
假設投資額為1,000元在如履薄冰每年年底。利率為每年10％。

(a) Calculate the present value (PV) of the investment to the nearest cent after : (i) 1 year
(ii) 10 years (iii) 50 years (iv) 100 years.(4 marks)
(b) Do the present values calculated in (a) appear to be approaching a limiting value as
the number of years increases? If so, what is this value? Explain your answer.(4 marks)#p#分頁標題#e#
1年數年的增加嗎？如果是這樣，這是什么價值？