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Number of Words: 1500W
No. of References: 10
Each question should have a minimum of 300 words.
Read carefully and Answer ALL questions. The number of marks allocated is shown on each question.
All question numbers and answers must be written in a single word document.
(a) What are the key factors that determine the beta of a company? (6 marks)
(b) Define free cash flow. What is the significance of firm’s free cash flow? What is the
implication if firm has negative free cash flow in a given year? (6 marks)
(c) Analyze key factors that influence capital structure. (6 marks)
(d) Cannibalization should be reflected by reducing project cash flows. Explain. (6 marks)
(e) Every company should maintain AAA rating in order to minimize its cost of capital.
Explain. (6 marks)
(TOTAL: 30 marks)