Mock exam to pratise uploading PDF

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 ResearchSchoolofFinance,ActuarialStudiesandStatistics PracticeEXAMINATION  Semester1,2020    0minutes 240minutes

ReadingTime: WritingTime:   ExamConditions: Thisisamockexamtopractisetheuploadingofanswerstothewattlesite.Theactuallyexammay coverdifferenttopicsandthenumberofquestionsandformatmayvary.  PermittedMaterials: Any  InstructionstoStudents: 1. Thisexampaperconsistsofatotalof2pages.Pleaseensureyourpaperhasthecorrectnumber ofpages. 2. Thisexamincludesatotalof2questions.Thequestionsareofunequalvalue,withmarksindicated foreachquestion.Youmustattempttoanswerallquestionsunlessdirectedotherwise. 3. Pleaseincludeallworkingsforeachquestion,asmarkswillnotbeawarded for answersthatdo notincludeworkings. 4. Youareremindedtoadhere to theANUacademicintegrityduringtheexam.Youmustsignand datethe“RSFASFINALASSESSMENTCOVERSHEET”(attached)andmakeitthecoverpageofyour submission.Thisisanessentialrequirementofthisexamandyoursubmissionwillnotbeaccepted withoutthisdocument.      

ThisexamwillNOTcounttowardsyourfinalgradeforthecourse.   

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Question 1 You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return. 1. Calculate the post-money valuation of your firm. 2. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own? 3. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own?

Question 2 Tiger Industries (TI) has 100 million shares outstanding, a current share price of $25, and no debt. TI's management believes that the shares are under-priced, and that the true value is $30 per share. TI plans to pay $250 million in cash to its shareholders by repurchasing shares. Management expects that very soon new information will come out that will cause investors to revise their opinion of the firm and agree with TI's assessment of the firm's true value. 1. Assuming that TI is not able to repurchase shares prior to the market becoming aware of the new information regarding TI's true value. If TI repurchases the shares following the release of the new information, then what’s the number of shares outstanding following the repurchase? 2. Assuming that TI is not able to repurchase shares prior to the market becoming aware of the new information regarding TI's true value. After the release of the new information regarding the true value of TI, and following the repurchase, what’s the firm's share price? 

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ResearchSchoolofFinanceActuarialStudies&Statistics  ANUCollegeofBusinessand Economics AustralianNationalUniversity CanberraACT2601 https://www.rsfas.anu.edu.au/ 

RSFASFINALASSESSMENTCOVERSHEET 

Submissionandassessmentisanonymouswhereappropriateand possible.Pleasedonotwrite yournameonthiscoversheet.  Thiscoversheetmustbeattachedtothefrontofyourassessmentwhensubmitted.  StudentID:

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 Ideclarethatthiswork: upholdstheprinciplesofacademicintegrity,asdefinedintheANUPolicy:CodeofPracticefor  StudentsUniversityAcademicMisconductRules; isoriginal,exceptwherecollaboration(forexamplegroupwork)hasbeenauthorisedinwriting  bythecourseconvenerinthecourseoutlineand/orWattlesite; is produced for the purposes of this assessment task and has not been submitted for  assessmentinanyothercontext,exceptwhereauthorisedinwritingbythecourseconvener; gives appropriate acknowledgement of the ideas, scholarship and intellectual property of  othersinsofarasthesehavebeenused;  innopartinvolvescopying,cheating,collusion,fabrication,plagiarismorrecycling.  Signed:

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