Finance Final Exam Coverage

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Questions and Answers

What is the total mark distribution for Part A of the final exam in FINA1221?

80 marks
100 marks
60 marks (correct)
40 marks

Which chapters are excluded from revision for the final exam in FINA1221?

Chapters 11 and 12
Chapters 8 and 9
Chapter 10 (correct)
Chapters 7 and 12

How many questions are included in Part B of the FINA1221 final exam?

8 questions
6 questions
4 questions (correct)
2 questions

What percentage of the final exam marks is allocated to questions from Chapters 8 and 9?

24% (B) Signup and view all the answers

What is the mode of the final exam for FINA1221?

On-campus (A) Signup and view all the answers

What is the total exam duration for the FINA1221 final exam?

2 hours (A) Signup and view all the answers

What type of exam format is used for the FINA1221 final exam?

Closed book (A) Signup and view all the answers

Which component consists of qualitative/conceptual and quantitative questions?

Part B (C) Signup and view all the answers

Which chapters from the textbook are included in the exam coverage?

Chapters 7-12 excluding chapter 10 (C) Signup and view all the answers

What items are permitted to bring to the exam?

UWA approved calculator with a sticker (A) Signup and view all the answers

What should you do before starting your response to a question?

Label the question number clearly (C) Signup and view all the answers

What is required to be returned at the end of the exam?

Both the answer booklet and question paper (C) Signup and view all the answers

What should students do regarding past examination papers?

Use other provided materials for preparation instead (B) Signup and view all the answers

Are students encouraged to read everything assigned in the textbook?

Yes, but it is not required (C) Signup and view all the answers

Can students review the MFL tests?

Yes, they can be reviewed (D) Signup and view all the answers

What will be provided with the exam questions?

A formula sheet (D) Signup and view all the answers

What is a requirement for taking a final exam at the University of Western Australia in case of illness?

You need to contact student services immediately (A) Signup and view all the answers

What financial tool is not mandatory for solving exam problems at the University of Western Australia?

Financial calculator (D) Signup and view all the answers

Which of the following is NOT included in cash flows for capital budgeting according to the guidelines?

Interest expenses (B), Sunk costs (C) Signup and view all the answers

What is the primary method for valuing a share mentioned in the content?

Expected future dividends (B) Signup and view all the answers

Which decision-making approach helps in evaluating projects with limited resources?

Net present value (B) Signup and view all the answers

What is a potential issue if there is a mistake in the question paper during an exam?

Corrections may not happen during the exam (A) Signup and view all the answers

In which situation is it necessary to calculate taxes related to a project?

During free cash flow calculations (A) Signup and view all the answers

What trade-off must be understood in share valuation?

Dividends vs. growth (C) Signup and view all the answers

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Study Notes

Final Exam Coverage

Covers chapters 7-12 (excluding chapter 10) of the textbook
Exam includes lecture notes from lectures 7-12
Illustrations used throughout the semester, tutorial questions and solutions, and MyFinanceLab (MFL) test content are considered examinable

Final Exam Structure

2-hour closed book exam held on campus
Date, time and venue are according to official university exam schedule, check timetable or contact studentConnect
Two parts
- Part A: 20 multiple-choice questions (MCQ) for 60 marks
- Part B: 4 questions worth 40 marks, each with sub-questions
Requires answering all questions
Questions include both qualitative/conceptual and quantitative topics

Permitted Items

UWA approved calculator (stickered)
Pen, pencil, ruler, set square, and eraser
Refer to provided link for approved items list and other important information before and during exams

Frequently Asked Questions

Can I review the MyFinanceLab tests?
- Yes, click on results and then review
Is it mandatory to use a financial calculator?
- No, questions are designed to be solvable with UWA approved scientific or financial calculators
Will I be able to bring any formula sheet or notes to the test?
- No
What if there is a mistake in the question paper?
- Answer to the best of your ability based on the information provided
What should I do if I am sick or cannot take the final exam?
- Contact student services immediately for advice.

Week 7 Lecture

Valuation of Equity Instruments
- Covers basics of ordinary shares, preference shares, and share quotes
- Explains how to value a share as the present value of its expected future dividends
- Discusses the trade-off between dividends and growth in share valuation
- Emphasizes the limitations of valuing a share solely based on expected dividends
- Explains how to value a share as the present value of the company's total payout

Week 8 Lecture

Investment Decision Rules
- Calculates net present value (NPV)
- Discusses the NPV rule for investment decisions
- Explains alternative decision rules and their drawbacks
- Explains how to choose between mutually exclusive alternatives
- Evaluates projects with different lives
- Ranks projects when a company's resources are limited

Week 9 Lecture

Capital Budgeting
- Identifies relevant cash flows within capital budgeting problems
- Explains why opportunity costs are included in cash flows, while sunk costs and interest expense are not
- Explains how to calculate taxes that must be paid
- Explains how to calculate free cash flows for a project