A project had an equity beta of 1.4 and is to be financed by a combination of 25%Debt and 75% Equity. Assume Debt Beta as zero, Rf = 12% and Rm = 18%.Hence, the required rate of return of the project is

Syllabus for the paper: Section A : Investment decisions 25% 1. Investment Decisions, Project Planning and Control 2. Evaluation of Risky Proposals for Investment Decisions 3. Leasing Decisions Section B : Financial Markets and Institutions 20% 4. Institutions in Financial Markets 5. Instruments in Financial Markets 6. Capital Markets 7. Commodity Exchange Section C : security Analysis and portfolio Management 25% 8. Security Analysis & Portfolio Management Section D : Financial risk Management 30% 9. Financial Risks & Management 10. Financial Derivatives – Instruments for Risk... Show more

Syllabus for the paper:

Section A : Investment decisions 25%
1. Investment Decisions, Project Planning and Control
2. Evaluation of Risky Proposals for Investment Decisions
3. Leasing Decisions
Section B : Financial Markets and Institutions 20%
4. Institutions in Financial Markets
5. Instruments in Financial Markets
6. Capital Markets
7. Commodity Exchange
Section C : security Analysis and portfolio Management 25%
8. Security Analysis & Portfolio Management
Section D : Financial risk Management 30%
9. Financial Risks & Management
10. Financial Derivatives – Instruments for Risk Management
11. Financial Risk Management in International Operations

Related Test: CMA Intermediate Exam: Financial Management

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