Finance Exam Study Guide
Semester One, 2011
Unit Code and Title
ECF5220 Principles of Finance
Reading time Working time Total time
5 minutes 3 hours 3 hours 5 minutes
Any four (4) out of five (5) questions All questions carry equal marks. This will total to 100 marks and will be scaled to produce a mark consistent with 60% weighting in the unit assessment. Closed Book exam – textbook, reference books, notes, and tutorial solutions are not permitted. Text programmable calculators may be used in the exam but must have their memory cleared before entering the exam room. Failure to do so and/or the use of any programmed information during the exam will be regarded as cheating and will be dealt with according to the University rules governing academic misconduct
Type of Exam
• • • • •
Do not use red ink or pencil in your answers. Set your calculator to 4 decimal places or more for all calculations. Show the workings in your calculations. No marks will be given if no workings are provided. Take time to write clearly. No credit will be given for illegible answers. Use diagram(s) where relevant to help illustrate your answers.
Students are not permitted to write on the examination or any other paper during reading time. Do not commence the examination until you are told to do so.
ECF5220 FE 111
Page 1 of 7
Answer any FOUR questions. Each question carries 25 marks.
QUESTION 1 A manufacturer has a small factory which generates revenue of $800,000 per year. The factory and office cash costs (being rent, rates and office staff) amount to $160,000 per annum. Factory labour costs for each of the ten employees are $30,000 per person per annum. The additional associated labour costs, like superannuation and annual leave, are 20% of labour costs. The current machinery cost $1,500,000 two years ago and is being depreciated over its estimated life of five years. If the machinery