latest FM201(Financial management)Current paper today06.12.10

There were 28 MCQ,s today and 4 Subjective question.
Q1.What is difference between bond coupon rate,current yield,and yield maturity?(marks 5).
Q2.How risk effect the shareprice?(marks 2.5).
     What is meaning of standard deviation in financial management?(marks 2.5).
Q3.What is interest impact on long term bond and short term bond?(marks 3).
Q4.What are two appraoches to common stock valuation?(marks 3).

Given no change in required returns, the price of a stock whose dividend is constant will__________.

Select correct option:

Decrease over time at a rate of r% Remain unchanged CORRECT Increase over time at a rate of r% Decrease over time at a rate equal to the dividend growth rate

As interest rates go up, the present value of a stream of fixed cash flows _____.

       ► Goes down

       ► Goes up

       ► Stays the same

       ► Can not be found

   

Which of the following make the calculation of NPV difficult?

       ► Estimated cash flows

       ► Discount rate

       ► Anticipated life of the business

       ► All of the given options

Most of MCQ,s were new therefore preapre well.

Best of luck.