FEDERAL URDU UNIVERSITY OF ARTS, SCIENCE AND TECHNOLOGY,

ISLAMABAD
DEPARTMENT OF BUSINESS ADMINISTRATION
FINAL TERM BBA-3 (A, B, C, & D); MBA-2
Semester -- Spring-2021
================================================================================
Subject: Intro to Business Finance Total Marks: 50
Exam Date: 28-07-2021 (Wednesday) Time Allowed: 3.5 Hours
Email: mehwishaziz.khan@fuuast.edu.pk
Google Class Room Code:

BBA-3 A & MBA-2 BBA-3 B BBA-3 C BBA-3 D

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Q.No. 1 2 3 4 5 6 7 8 9 10 Marks Obtained/total Marks

Marks
Obtained
Total Marks in Words:
Name of the Teacher: Ms. Mehwish Aziz Khan
Who taught the course: Signature of Teacher/Examiner:

To be filled by Student

Student Name: Muqaddas Zulfiqar Father Name: Zulfiqar Ali

Student’s MIS ID: 30101

Enrollment No: Class/Section:BBA-3B

WhatsApp No. 03339411832

Student’s Email: muqaddaszulfiqar630@gmail.com

Instructions
1- Total time allowed for the paper is 3.5 hours.
2- Time allowed for the paper submission is 30 minutes. No paper would be acceptable after
due time.
3- Both handwritten and typed formats are acceptable.
4- Save your document in PDF format only.
5- Do not change the numbering of questions.
6- Provide complete solution to each problem showing every step.
7- Submit your answer sheet in Google Classroom through your active email ID (Google
classroom code is provided in the question paper).
8- No other medium of submission is acceptable i.e. WhatsApp, emails etc.
9- Submit the title page along with your answer sheet.
 Note: - Attempt All Questions

Q.1:- A stock’s return has the following distribution:

Demand for the Probability of this Rate of Return if

company’s products demand occurring this demand
occurs
Weak 0.1 (0.5)
Below Average 0.2 (0.05)
Average 0.4 0.16
Above Average 0.2 0.25
Strong 0.1 0.60

Use statistical measures to calculate the risk and return of the stock.
Q.2:- Westerfield Corporation is expected to pay the following dividends over
the next three years: $1, $2, and $2.50. Afterwards, the company pledges to
maintain a constant 5 percent growth rate in dividends forever. If the required
return on the stock is 10 percent, what is the current share price?
Q.3:- Sales = $58 million, Total assets = $35 million, Total debt = $12.6
million, & Profit margin = 16 percent
Calculate net income, ROA, and ROE?
Q.4:- A stock has an expected return of 32.4 percent, a beta of 3.5, and the
expected return on the market is 22 percent. What must the risk-free rate be?
Q.5:- You just purchased a bond which matures in 5 years. The bond has a face
value of $1,000, and has an 8 percent annual coupon. The bond has a current
yield of 8.21 percent. What is the bond’s yield to maturity?