[PDF] Advanced Financial Management This question paper must not

I<5H9 %,.B5H>I" O

QsmApAlA

/4537201 ddddd!d" dddd ddd d !d id!d" d!d ddd dd d!d#dddd# kkTr qkkVV eei ei dde =+(±± )1

EqrREqrR

ifi mf rqr ±r=+b b b ae ed ed ed V

VVT) )VT

((11 1

±±Trr

d b PDgr qrgr oo e ±1 gbr e WACCV VVkV VVk e ed ed ed d (±1TT) qrq11+=+ ir) (1+h)

SSxq1thq1thFSxq1tiq1

1-c b --c tti b r EB

4UFOLOJF/3TbJYTBQ/7BbJ/UL/7JbcYT

ANJ/1QBEP0:ENUQJa/UWbOUT/WYOEOTM/SUFJQ

ANJ/5cb/2BQQ/5BYObd/YJQBbOUTaNOW

cPNqdPNqde

Where:

d PPrt a1e 2±rt 1 ae ln(/)( --w5st st dds t 2 21
r

MIRRPV

PVr R In e 1

11±

pcPPe ae±rt

EEsmApAlA

PresentgValuegTable

Present value of 1 i.e. (1 + r)

-n

Where r = discount rate

n = number of periods until payment

Discount rate (r)

Periods

(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

1 0∑990 0∑980 0∑971 0∑962 0∑952 0∑943 0∑935 0∑926 0∑917 0∑909 1

2 0∑980 0∑961 0∑943 0∑925 0∑907 0∑890 0∑873 0∑857 0∑842 0∑826 2

3 0∑971 0∑942 0∑915 0∑889 0∑864 0∑840 0∑816 0∑794 0∑772 0∑751 3

4 0∑961 0∑924 0∑888 0∑855 0∑823 0∑792 0∑763 0∑735 0∑708 0∑683 4

5 0∑951 0∑906 0∑863 0∑822 0∑784 0∑747 0∑713 0∑681 0∑650 0∑621 5

6 0∑942 0∑888 0∑837 0∑790 0∑746 0∑705 0∑666 0∑630 0∑596 0∑564 6

7 0∑933 0∑871 0∑813 0∑760 0∑711 0∑665 0∑623 0∑583 0∑547 0∑513 7

8 0∑923 0∑853 0∑789 0∑731 0∑677 0∑627 0∑582 0∑540 0∑502 0∑467 8

9 0∑914 0∑837 0∑766 0∑703 0∑645 0∑592 0∑544 0∑500 0∑460 0∑424 9

10 0∑905 0∑820 0∑744 0∑676 0∑614 0∑558 0∑508 0∑463 0∑422 0∑386 10

11 0∑896 0∑804 0∑722 0∑650 0∑585 0∑527 0∑475 0∑429 0∑388 0∑350 11

12 0∑887 0∑788 0∑701 0∑625 0∑557 0∑497 0∑444 0∑397 0∑356 0∑319 12

13 0∑879 0∑773 0∑681 0∑601 0∑530 0∑469 0∑415 0∑368 0∑326 0∑290 13

14 0∑870 0∑758 0∑661 0∑577 0∑505 0∑442 0∑388 0∑340 0∑299 0∑263 14

15 0∑861 0∑743 0∑642 0∑555 0∑481 0∑417 0∑362 0∑315 0∑275 0∑239 15

(n) 11% 12% 13 % 14% 15% 16% 17% 18% 19% 20%

1 0∑901 0∑893 0∑885 0∑877 0∑870 0∑862 0∑855 0∑847 0∑840 0∑833 1

2 0∑812 0∑797 0∑783 0∑769 0∑756 0∑743 0∑731 0∑718 0∑706 0∑694 2

3 0∑731 0∑712 0∑693 0∑675 0∑658 0∑641 0∑624 0∑609 0∑593 0∑579 3

4 0∑659 0∑636 0∑613 0∑592 0∑572 0∑552 0∑534 0∑516 0∑499 0∑482 4

5 0∑593 0∑567 0∑543 0∑519 0∑497 0∑476 0∑456 0∑437 0∑419 0∑402 5

6 0∑535 0∑507 0∑480 0∑456 0∑432 0∑410 0∑390 0∑370 0∑352 0∑335 6

7 0∑482 0∑452 0∑425 0∑400 0∑376 0∑354 0∑333 0∑314 0∑296 0∑279 7

8 0∑434 0∑404 0∑376 0∑351 0∑327 0∑305 0∑285 0∑266 0∑249 0∑233 8

9 0∑391 0∑361 0∑333 0∑308 0∑284 0∑263 0∑243 0∑225 0∑209 0∑194 9

10 0∑352 0∑322 0∑295 0∑270 0∑247 0∑227 0∑208 0∑191 0∑176 0∑162 10

11 0∑317 0∑287 0∑261 0∑237 0∑215 0∑195 0∑178 0∑162 0∑148 0∑135 11

12 0∑286 0∑257 0∑231 0∑208 0∑187 0∑168 0∑152 0∑137 0∑124 0∑112 12

13 0∑258 0∑229 0∑204 0∑182 0∑163 0∑145 0∑130 0∑116 0∑104 0∑093 13

14 0∑232 0∑205 0∑181 0∑160 0∑141 0∑125 0∑111 0∑099 0∑088 0∑078 14

15 0∑209 0∑183 0∑160 0∑140 0∑123 0∑108 0∑095 0∑084 0∑074 0∑065 15

EF g gAnnuity Table

Present value of an annuity of 1 i.e.

WhereWrW=WdiscountWrate

WWnW=WnumberWofWperiods

Discount rate (r)

Periods

(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%W

WqWp∑yypW p∑yxpWp∑ywqWp∑yvrW p∑yurWp∑ytsWp∑ysuW p∑yrvWp∑yqwWp∑ypyW q

WrWq∑ywpW q∑ytrWq∑yqsWq∑xxvW q∑xuyWq∑xssWq∑xpxW q∑wxsWq∑wuyWq∑wsvW r

WsWr∑ytqW r∑xxtWr∑xryWr∑wwuW r∑wrsWr∑vwsWr∑vrtW r∑uwwWr∑usqWr∑txwW s

WtWs∑yprW s∑xpxWs∑wqwWs∑vspW s∑utvWs∑tvuWs∑sxwW s∑sqrWs∑rtpWs∑qwpW t

WuWt∑xusW t∑wqsWt∑uxpWt∑turW t∑sryWt∑rqrWt∑qppW s∑yysWs∑xypWs∑wyqW u

WvWu∑wyuW u∑vpqWu∑tqwWu∑rtrW u∑pwvWt∑yqwWt∑wvwW t∑vrsWt∑txvWt∑suuW v

WwWv∑wrxW v∑twrWv∑rspWv∑pprW u∑wxvWu∑uxrWu∑sxyW u∑rpvWu∑pssWt∑xvxW w

WxWw∑vurW w∑sruWw∑prpWv∑wssW v∑tvsWv∑rqpWu∑ywqW u∑wtwWu∑usuWu∑ssuW x

WyWx∑uvvW x∑qvrWw∑wxvWw∑tsuW w∑qpxWv∑xprWv∑uquW v∑rtwWu∑yyuWu∑wuyW y

WqpWy∑twqWx∑yxsWx∑uspWx∑qqqW w∑wrrWw∑svpWw∑prtW v∑wqpWv∑tqxWv∑qtuW qp

WqqWqp∑svxWy∑wxwWy∑rusWx∑wvpW x∑spvWw∑xxwWw∑tyyW w∑qsyWv∑xpuWv∑tyuW qq

WqrWqq∑ruuWqp∑uwuWy∑yutWy∑sxuW x∑xvsWx∑sxtWw∑ytsW w∑usvWw∑qvqWv∑xqtW qr

WqsWqr∑qstWqq∑stxWqp∑vsuWy∑yxvW y∑sytWx∑xusWx∑suxW w∑yptWw∑txwWw∑qpsW qs

WqtWqs∑pptWqr∑qpvWqq∑ryvWqp∑uvsW y∑xyyWy∑ryuWx∑wtuW x∑rttWw∑wxvWw∑svwW qt

WquWqs∑xvuWqr∑xtyWqq∑ysxWqq∑qqxW qp∑sxpWy∑wqrWy∑qpxW x∑uuyWx∑pvqWw∑vpvW qu

(n) 11% 12% 13 % 14% 15% 16% 17% 18% 19% 20%W

WqWp∑ypqW p∑xysWp∑xxuWp∑xwwW p∑xwpWp∑xvrWp∑xuuW p∑xtwWp∑xtpWp∑xssW q

WrWq∑wqsW q∑vypWq∑vvxWq∑vtwW q∑vrvWq∑vpuWq∑uxuW q∑uvvWq∑utwWq∑urxW r

WsWr∑tttW r∑tprWr∑svqWr∑srrW r∑rxsWr∑rtvWr∑rqpW r∑qwtWr∑qtpWr∑qpvW s

WtWs∑qprW s∑pswWr∑ywtWr∑yqtW r∑xuuWr∑wyxWr∑wtsW r∑vypWr∑vsyWr∑uxyW t

WuWs∑vyvW s∑vpuWs∑uqwWs∑tssW s∑surWs∑rwtWs∑qyyW s∑qrwWs∑puxWr∑yyqW u

WvWt∑rsqW t∑qqqWs∑yyxWs∑xxyW s∑wxtWs∑vxuWs∑uxyW s∑tyxWs∑tqpWs∑srvW v

WwWt∑wqrW t∑uvtWt∑trsWt∑rxxW t∑qvpWt∑psyWs∑yrrW s∑xqrWs∑wpvWs∑vpuW w

WxWu∑qtvW t∑yvxWt∑wyyWt∑vsyW t∑txwWt∑sttWt∑rpwW t∑pwxWs∑yutWs∑xswW x

WyWu∑uswW u∑srxWu∑qsrWt∑ytvW t∑wwrWt∑vpwWt∑tuqW t∑spsWt∑qvsWt∑psqW y

WqpWu∑xxyWu∑vupWu∑trvWu∑rqvW u∑pqyWt∑xssWt∑vuyW t∑tytWt∑ssyWt∑qyrW qp

WqqWv∑rpwWu∑ysxWu∑vxwWu∑tusW u∑rstWu∑pryWt∑xsvW t∑vuvWt∑txvWt∑srwW qq

WqrWv∑tyrWv∑qytWu∑yqxWu∑vvpW u∑trqWu∑qywWt∑yxxW t∑wysWt∑vqqWt∑tsyW qr

WqsWv∑wupWv∑trtWv∑qrrWu∑xtrW u∑uxsWu∑strWu∑qqxW t∑yqpWt∑wquWt∑ussW qs

WqtWv∑yxrWv∑vrxWv∑sprWv∑pprW u∑wrtWu∑tvxWu∑rryW u∑ppxWt∑xprWt∑vqqW qt

WquWw∑qyqWv∑xqqWv∑tvrWv∑qtrW u∑xtwWu∑uwuWu∑srtW u∑pyrWt∑xwvWt∑vwuW qu

WqW-WgqWkWrh

-n

óóóó--r

EJ d4iwni2n wy2viu ns342sl54syw 4iluo

0·000·010·02 0·030·040·05 0·060·070·08 0·09

0·00·0000 0·00400·00800·0120 0·01600·01990·0239 0·02790·03190·0359

0·10·0398 0·04380·04780·0517 0·05570·05960·0636 0·06750·07140·0753

0·20·0793 0·08320·08710·0910 0·09480·09870·1026 0·10640·11030·1141

0·30·1179 0·12170·12550·1293 0·13310·13680·1406 0·14430·14800·1517

0·40·1554 0·15910·16280·1664 0·17000·17360·1772 0·18080·18440·1879

0·50·1915 0·19500·19850·2019 0·20540·20880·2123 0·21570·21900·2224

0·60·2257 0·22910·23240·2357 0·23890·24220·2454 0·24860·25170·2549

0·70·2580 0·26110·26420·2673 0·27040·27340·2764 0·27940·28230·2852

0·80·2881 0·29100·29390·2967 0·29950·30230·3051 0·30780·31060·3133

0·90·3159 0·31860·32120·3238 0·32640·32890·3315 0·33400·33650·3389

1·00·3413 0·34380·34610·3485 0·35080·35310·3554 0·35770·35990·3621

1·10·3643 0·36650·36860·3708 0·37290·37490·3770 0·37900·38100·3830

1·20·3849 0·38690·38880·3907 0·39250·39440·3962 0·39800·39970·4015

1·30·4032 0·40490·40660·4082 0·40990·41150·4131 0·41470·41620·4177

1·40·4192 0·42070·42220·4236 0·42510·42650·4279 0·42920·43060·4319

1·50·4332 0·43450·43570·4370 0·43820·43940·4406 0·44180·44290·4441

1·60·4452 0·44630·44740·4484 0·44950·45050·4515 0·45250·45350·4545

1·70·4554 0·45640·45730·4582 0·45910·45990·4608 0·46160·46250·4633

1·80·4641 0·46490·46560·4664 0·46710·46780·4686 0·46930·46990·4706

1·90·4713 0·47190·47260·4732 0·47380·47440·4750 0·47560·47610·4767

2·00·4772 0·47780·47830·4788 0·47930·47980·4803 0·48080·48120·4817

2·10·4821 0·48260·48300·4834 0·48380·48420·4846 0·48500·48540·4857

2·20·4861 0·48640·48680·4871 0·48750·48780·4881 0·48840·48870·4890

2·30·4893 0·48960·48980·4901 0·49040·49060·4909 0·49110·49130·4916

2·40·4918 0·49200·49220·4925 0·49270·49290·4931 0·49320·49340·4936

2·50·4938 0·49400·49410·4943 0·49450·49460·4948 0·49490·49510·4952

2·60·4953 0·49550·49560·4957 0·49590·49600·4961 0·49620·49630·4964

2·70·4965 0·49660·49670·4968 0·49690·49700·4971 0·49720·49730·4974

2·80·4974 0·49750·49760·4977 0·49770·49780·4979 0·49790·49800·4981

2·90·4981 0·49820·49820·4983 0·49840·49840·4985 0·49850·49860·4986

3·00·4987 0·49870·49870·4988 0·49880·49890·4989 0·49890·49900·4990

This table can be used to calculate N(d), the cumulative normal distribution functions needed for the Black-Scholes model

of option pricing. If d i > 0, add 0·5 to the relevant number above. If d i < 0, subtract the relevant number above from 0·5.

End of Question Paper

quotesdbs_dbs14.pdfusesText_20