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University of Information Technology and Sciences (UITS)

School of Business
Class Test Examination Fall, 2011 Course Title: Introduction to Finance Course Code: FIN 141 Time-1 Hours Full Marks-15 Name # ID # SECTION #

Section A (Answer any 2 out of 3 Questions = 3*2 = 06) 1. What do you mean Finance? What is the goal of corporate finance? 2. The Goal of Business should not be Profit Maximization why? 3. What is Agency Cost? How Agency conflict led to agency cost of a firm?

Section B (Answer any 3 out of 4 Questions= 3*3 = 09) 1. AB Bank pays 12% compound interest quarterly. If you want to get tk.2 lac at the end of 5 years from now, how much you have to deposit now? 2. Mr. Asif opens a DPS account at Prime Bank limited, Motijheel branch on January 01, 2012 by committed to deposit tk. 1000 at the beginning of every month until December 31, 2015. The bank offers him 12% on DPS account. How much will Mr. Asif receive on maturity? 3. DBH granted you tk. 20 lac as loan to buy a flat. The rate of interest is 13%. The loan should be paid in equal monthly installments for next 10 years. How much should be paid in each installment? 4. Mr. Sazzad wants to invest tk. 500,000 but he has 3 opportunities for investment: Offer 1: SIBL offer him they will give the double amount after 7 years Offer 2: NCC Bank offers 12% compound interest Offer 3: IFIC Bank offers 13% compound interest Which offer will accept by Mr. Sazzad? Justify.

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