Finance and Capital Markets SEM1 Exam Questions PDF

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University of Bedfordshire Business School Accounting and Finance

AAF012-6 Finance and Capital Markets Main Examination Paper 2015-16 SEMESTER 1

Date of Exam:

Thursday 28th January 2016

Start Time:

09:00

Time Allowed:

2 Hours

Unit Co-ordinator:

Dr Sanawar Choudhury

INSTRUCTIONS TO CANDIDATES    

This is an open-book exam. Find attached Note 20, 21 and 22 Annual Report Statements 2015 (10 pages) There are 2 questions on this paper. Candidates are to answer both questions. An approved calculator is allowed.

PLEASE DO NOT OPEN THIS PAPER UNTIL INSTRUCTED TO DO SO BY THE SENIOR INVIGILATOR

PLEASE NOTE

In order to comply with current copyright legislation, data sheets and extracts from books, journals, websites and newspapers included in this exam paper may have been removed. Full details (where available) are supplied below, unless already provided in the exam paper.

https://www.tescoplc.com/files/pdf/reports/ar15/download_annual_r eport.pdf

1. Attached are Note 20 (Borrowings), Notes 21 (Financial Instruments) and Note 22 (Financial Risk Factors) from the Tesco plc Annual Report and Financial Statements 2015. Explain the difference between current and non-current borrowings as detailed in Note 20, using four items to illustrate your answer. Your answer should detail why and how the company may have raised these borrowings (30 marks) Note 21 details Fair Value Hedges, Cash Flow Hedges and Net Investment Hedges. Explain what these are and why it is important for the investor to know both the type and financial risks attached to debt instruments. (30 marks) 2. Critically analyse the growth of shadow banking and its impact on traditional banking (40 marks)

End of the paper...