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EXAMINATION PAPER FOR COMPLETION ONLINE

Session: 2020/21

Faculty: Business and Law

Programme/Course:

Level: 6

Module Title and Code: ACFI3310/3390 Advanced Corporate Finance

Date: Wednesday 25th August 2021

Duration: 3 hours

The examination window is from 8am-6pm UK time.

For the duration of the examination see ‘duration’. Your time starts when you begin the examination.

You are reminded that the examination must be completed and submitted by 6pm UK time.

Statement of Own Work

By submitting your examination answer, you are confirming that your effort is an individual effort,
entirely your own work and that you have not engaged in bad academic practice and/or an academic
offence.   

All students should note that it is your responsibility to upload your answer sheet through the Turnitin
portal within the duration. Students who fail to submit through Turnitin, or within the exam duration,
will be awarded 0% for this assessment.

Student Guidance on Taking Remote Examinations

Students are reminded that guidance on taking online examinations is available on the Examinations
web page.

If you find what you perceive to be an error in any of the questions please state your assumptions and
continue with your answer.

There are two (2) sections in this assessment. Section A is comprised of ten short form questions
worth 40 marks in total. Section B is comprised of 3 questions worth 20 marks each, 60 marks in
total. You must answer ALL questions.
Tables are provided at the end of the paper.

Where a word count is listed against any discursive question part, please note that this is for
guidance only and no penalty will be given for exceeding it.

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SECTION A - SHORT FORM QUESTIONS

Answer all questions in this section

Question 1
Briefly explain what is stated in Modigliani and Miller’s Proposition I
(without taxes).
(Suggested wordcount: 60 words)
(3 marks)

Question 2
An all equity financed company has 8 million shares outstanding, each
with a share price of £1.90. Assuming that there are no market
imperfections, what would happen to the share price if the company
issues £10 million of debt to repurchase shares?

(3 marks)

Question 3
Consider the capital structure information for Saturn Co below:

Firm Equity Debt

Name Beta Beta Debt to Equity Ratio
Saturn 0.94 0 1:4

Calculate Saturn’s un-geared Beta. Assume that the corporate tax rate is
30%.
(4 marks)

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Question 4
A project costs £1.2 million and has a base case NPV of £0.2 million.
The project also requires £0.5 million to be raised by a stock issue, with
issue costs being charged at 10% of the amount raised. Calculate the
Adjusted Present Value (APV) of the project and state whether the
project should be accepted.

(3 marks)

Question 5
Explain what is meant by clientele preferences.
(Suggested wordcount: 60 words)

(3 marks)

Question 6
Miller Plc has 950,000 shares outstanding. Its earnings are £2.5 million
this year and it expects to pay all of it as a dividend. The required rate of
return is 6%. From next year onwards it expects to earn £5 million, what
would the share price be today?
(3 marks)

Question 7
XYZ Ltd (XYZ) has no debt and a cost of equity of 8.7%. What would
XYZ’s cost of equity be if it borrowed to the point that its debt-to-equity
ratio (D/E) was 0.6? At this point XYZ’s pre-tax cost of debt is 2%.
Assume that the corporation tax rate is 20%.
(4 marks)

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Question 8

Two hundred put options were bought for an ask price of 18 pence each,
with an exercise (strike) price of £7.50. On the expiry date, the share
price was £7.20. Calculate the buyer’s payoff and the profit for the full
transaction.
(3 marks)

Question 9
a) Company A has a present value of £78 million and Company B has a
present value of £14 million. Merging the two would enable cost
savings with a present value of £5 million. Company A acquires
100% of shares in Company B for £18 million. What do Company
B’s shareholders gain from this acquisition?
(3 marks)

b) Deepings Company has a P/E ratio of 9.6 and a share price of £1.52.
What are the earnings per share of the company?
(3 marks)

Question 10
Barnes Plc’s current share price is 56 pence. It could go up by 10% or
down by 4%. The risk-free rate of return is 2%.
Use the Binomial option pricing model to calculate the price of a one-
year call option for Barnes Plc, with a strike price of 58 pence.
(8 marks)

SECTION A TOTAL 40 MARKS

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SECTION B - LONG FORM QUESTIONS

Answer all questions in this section

Question 11 - Capital structure

Ample Restaurants Plc (Ample Restaurants) is a large chain of

restaurants in the UK that owns over 450 restaurants. The company
would like to diversify by launching a new line of soft drinks. Ample
Restaurants is hoping that it can use its existing brand and reputation to
sell its new products to large retailers and wholesalers. The Finance
Director has been asked to evaluate the project.

The new project would require an initial investment of £5 million and is

expected to generate net cash flows, after tax, of £1.2 million per year in
years 1-5.

The investment will be financed 70% by equity and 30% by debt, which
is in line with Ample Restaurants’ existing capital structure. Most of the
debt will be financed by a subsidised loan, however, the details of this
arrangement have not yet been finalised.

Ample Restaurants’ current Weighted Average Cost of Capital (WACC)

is 8%. The rate of corporate tax is 20%. The market return is 8% and
Ample Restaurants can borrow at the risk-free rate of 2%.

The Finance Director has obtained the betas and debt ratio of a proxy
company, Cold Drinks Plc. These are:

Equity Debt Debt ratio

Beta Beta (debt: equity)
Cold Drinks Plc 0.79 0 1:4

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Required:

a) Calculate the risk-adjusted WACC for Ample Restaurants Plc using

Cold Drinks Plc as a proxy company.
(10 marks)

b) Calculate the NPV for the project, using the risk-adjusted WACC as
the cost of capital. Suggest whether the project should be accepted.
(5 marks)

c) Critically evaluate the differences between the risk-adjusted WACC

and Adjusted Present Value (APV) approaches to appraise the
project in question.
(Suggested wordcount: 100 words)
(5 marks)
Total 20 marks

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Question 12 – Dividends

Miller Plc (Miller) has £65 million in excess cash and no debt. The firm
expects to generate additional free cash flows of £35 million per year in
subsequent years and will pay out these future free cash flows as
regular dividends.

Miller’s unlevered cost of capital is 9% and the company presently has 5

million shares outstanding. Miller's board is meeting to decide whether to
pay out its £65 million in excess cash as a special dividend or to use it to
repurchase shares of the firm's stock.

As some preliminary calculations to assist the board meeting you have

been tasked with answering the following:-

a) What is the cum dividend price, the regular future annual dividend
and the current market value of Miller?
(4 marks)

b) Assume that Miller Plc uses the entire £65 million in excess cash to
pay a special dividend. What will Miller Plc’s ex-dividend price be?
(2 marks)

c) Assume that Miller Plc uses the entire £65 million to repurchase
shares at the cum div price calculated in part (a)
i) What is the number of repurchased shares?
(round to the nearest share) (2 marks)

ii) What is the number of outstanding shares? (1 mark)

iii) What is the amount of regular yearly dividends in the future?

(1 mark)

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d) Evaluate the application of dividend irrelevance theory for Miller Plc

when perfect markets are assumed (use your answer from parts (a)
to (c) to assist your answer).
(Suggested wordcount: 200 words)
(10 marks)

Total 20 marks

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Question 13 – Options and Mergers and Acquisitions
The stock price of Lannon Plc (Lannon), a large marketing agency is
currently 54 pence. The annual risk-free rate is 2%. The standard
deviation is 8%.
Lannon does not pay dividends.
Work to 2 decimal places in your answers.

Required:
a) Use the Black-Scholes option pricing model to calculate the price of a
one-year call option for Lannon, with a strike price of 58 pence.
(10 marks)

b) The board of directors at Lannon are considering the acquisition of a

small, but successful marketing agency, McCotney Ltd (McCotney).

i) Discuss two possible motivations Lannon might have for acquiring

McCotney.
(Suggested wordcount: 100 words)
(5 marks)

ii) The current valuation of McCotney using the Net Asset valuation
method is £5m. Critically evaluate this valuation based on the
method employed.
(Suggested wordcount: 100 words)
(5 marks)

Total 20 marks

SECTION B TOTAL 60 MARKS

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 Sheet 11 of 21

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FORMULAE
FV 1
FV = PV ( 1+ i )n PV = Perpetuity Factor=
( 1+i )n i

1 1 1−( 1+r )−n

PVAF =
i (
1−
( 1+i )n ) or
r

1
FVAF = [ ( 1+i )n−1 ]
i

d 0 (1+ g) d d0
DVM k e=
p0
+ g∨ 1 + g
p0
where g=
√
n

dn
−1

d
(no growth) k e = p
0

Modigliani and Miller

Without tax With Tax
V L=V u V L=V u+ DƬ

D D
r eL=r eu + ( r −r ) r eL=r eu + ( 1−Ƭ ) ( r eu −r d )
E eu d E

DƬ  
WACC L=r e ( VE )+ r ( VD )
d WACC L=WACC u 1− ( VL )
Or Or

E D E D
WACC L = r e [ D+ E
+r d ] [
D+ E ] WACC L=r eL ( )
VL
+ r d (1−T )
VL( )

WACC U =r eu=WACC L WACC U =r eu

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CAPM r e =r f + β ( r m−r f )

E D(1−Ƭ )
+B (
( E+ D(1−Ƭ )) E+ D(1−Ƭ ) )
Beta Beu =B eL d

Options
Cu −Cd C d−S d ∆
∆= B= C=S ∆+ B
Su −S d 1+r f

ln ⁡(S / PV ( K)) σ √ T
PV ( K )=K e−it d 1= +
σ √T 2

d 2=d 1−( σ √ T ) C=S × N ( d 1 )−PV (K )× N (d 2 )

P=PV ( K ) × [ 1−N ( d 2 ) ]−S × [ 1−N (d 1) ]

C=P+ S−PV ( K )−PV ( d 0 )

Company Valuation
Price Earnings Ratio = Share price / Earnings Per Share
Constant growth:
d 0 (1+ g) FCF 1
po = or PV =
k e −g k e −g

Non-constant growth:
¿1 ¿2 ¿H PH ¿ H +1
P 0= 1
+ 2
+ …+ H
+ H
where P H =
( 1+r ) ( 1+r ) (1+ r ) ( 1+r ) r −g

Or

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 Sheet 13 of 21

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FCF 1 FCF 2 FCF H PV H FCF H +1
V= 1
+ 2
+ …+ H
+ H
where PV H =
( 1+r ) ( 1+r ) ( 1+ r ) ( 1+r ) r−g
FCF 1 FCF 2 FCF H FCF H FCF H + 1
PV = 1
+ 2
+…+ H
+ H
where FCF H =
( 1+ r ) ( 1+ r ) ( 1+r ) ( 1+r ) r−g

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TERMINOLOGY

β e L =β eg=systematic risk of equity of geared ( leveraged ) company

β eu =systematic risk of equity of ungeared ( unleveraged ) company

k d=R D =r d =cost ( required return ) of debt

k e =R A=r e =cost (required return)of equity

k eL=k eg =r eL=cost of geared ( leveraged ) equity

k eu=r eu=WACC u =cost of ungeared (unleveraged ) equity

V d =V D=D=Value of debt

V e =V E=E=Value of equity

V L=V G=Value of leveraged ( geared ) company

V U =Value of unleveraged ( ungeared ) company

WACC=R A=r WACC =Weighted average cost of capital (required return of all capital)

WACC L=WACC g=WACC of geared ( leveraged ) company

r f =risk free interest rate , r m=market rate of return

C=Call premium

C u=Call premium (upside) , Cd =Call premium (downside )

S=current share price K=strike price

t=time until option expires

N ( d )=cumulative normal distribution of d

σ =standard deviation

e=exponential ln =natural log

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 Sheet 15 of 21

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PRESENT VALUE of £1 at i% and n periods
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Module Code: ACFI3310/3390

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1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 1
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 2
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 3
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 4
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 5
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 6
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 7
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 8
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 9
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 10
11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 11
12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 12
13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 13
14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 14
15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 15
20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 20
25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 25

0.160 0.170 0.180 0.190 0.200 0.210 0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 0.300
1 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769 1
2 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.630 0.620 0.610 0.601 0.592 2
3 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.500 0.488 0.477 0.466 0.455 3
4 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.397 0.384 0.373 0.361 0.350 4
5 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.315 0.303 0.291 0.280 0.269 5
6 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.250 0.238 0.227 0.217 0.207 6
7 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.198 0.188 0.178 0.168 0.159 7
8 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.157 0.148 0.139 0.130 0.123 8
9 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.125 0.116 0.108 0.101 0.094 9
10 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.099 0.092 0.085 0.078 0.073 10
11 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.079 0.072 0.066 0.061 0.056 11
12 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0.062 0.057 0.052 0.047 0.043 12
13 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.050 0.045 0.040 0.037 0.033 13
14 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.039 0.035 0.032 0.028 0.025 14
15 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.031 0.028 0.025 0.022 0.020 15
20 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.010 0.008 0.007 0.006 0.005 20
25 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.003 0.003 0.002 0.002 0.001 25

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PRESENT VALUE of a £1 annuity at i% and n periods Sheet 17 of 21

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1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 1
2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 2
3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 3
4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 4
5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 5
6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 6
7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 7
8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 8
9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 9
10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 10
11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 11
12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 12
13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 13
14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 14
15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 15
20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 20
25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 25

0.160 0.170 0.180 0.190 0.200 0.210 0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 0.300
1 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769 1
2 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 1.424 1.407 1.392 1.376 1.361 2
3 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 1.923 1.896 1.868 1.842 1.816 3
4 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 2.320 2.280 2.241 2.203 2.166 4
5 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 2.635 2.583 2.532 2.483 2.436 5
6 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 2.885 2.821 2.759 2.700 2.643 6
7 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 3.083 3.009 2.937 2.868 2.802 7
8 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 3.241 3.156 3.076 2.999 2.925 8
9 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 3.366 3.273 3.184 3.100 3.019 9
10 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 3.465 3.364 3.269 3.178 3.092 10
11 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 3.543 3.437 3.335 3.239 3.147 11
12 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 3.606 3.493 3.387 3.286 3.190 12
13 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 3.656 3.538 3.427 3.322 3.223 13
14 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 3.695 3.573 3.459 3.351 3.249 14
15 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 3.726 3.601 3.483 3.373 3.268 15
20 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 3.808 3.673 3.546 3.427 3.316 20
25 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 3.834 3.694 3.564 3.442 3.329 25
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FUTURE VALUE of £1 at i% and n periods Sheet 18 of 21

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1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.110 1.120 1.130 1.140 1.150 1
2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.232 1.254 1.277 1.300 1.323 2
3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.368 1.405 1.443 1.482 1.521 3
4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.518 1.574 1.630 1.689 1.749 4
5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.685 1.762 1.842 1.925 2.011 5
6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.870 1.974 2.082 2.195 2.313 6
7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.076 2.211 2.353 2.502 2.660 7
8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.305 2.476 2.658 2.853 3.059 8
9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.558 2.773 3.004 3.252 3.518 9
10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 2.839 3.106 3.395 3.707 4.046 10
11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.152 3.479 3.836 4.226 4.652 11
12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.498 3.896 4.335 4.818 5.350 12
13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 3.883 4.363 4.898 5.492 6.153 13
14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.797 4.310 4.887 5.535 6.261 7.076 14
15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 4.785 5.474 6.254 7.138 8.137 15
20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 8.062 9.646 11.523 13.743 16.367 20
25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.835 13.585 17.000 21.231 26.462 32.919 25

0.160 0.170 0.180 0.190 0.200 0.210 0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 0.300
1 1.160 1.170 1.180 1.190 1.200 1.210 1.220 1.230 1.240 1.250 1.260 1.270 1.280 1.290 1.300 1
2 1.346 1.369 1.392 1.416 1.440 1.464 1.488 1.513 1.538 1.563 1.588 1.613 1.638 1.664 1.690 2
3 1.561 1.602 1.643 1.685 1.728 1.772 1.816 1.861 1.907 1.953 2.000 2.048 2.097 2.147 2.197 3
4 1.811 1.874 1.939 2.005 2.074 2.144 2.215 2.289 2.364 2.441 2.520 2.601 2.684 2.769 2.856 4
5 2.100 2.192 2.288 2.386 2.488 2.594 2.703 2.815 2.932 3.052 3.176 3.304 3.436 3.572 3.713 5
6 2.436 2.565 2.700 2.840 2.986 3.138 3.297 3.463 3.635 3.815 4.002 4.196 4.398 4.608 4.827 6
7 2.826 3.001 3.185 3.379 3.583 3.797 4.023 4.259 4.508 4.768 5.042 5.329 5.629 5.945 6.275 7
8 3.278 3.511 3.759 4.021 4.300 4.595 4.908 5.239 5.590 5.960 6.353 6.768 7.206 7.669 8.157 8
9 3.803 4.108 4.435 4.785 5.160 5.560 5.987 6.444 6.931 7.451 8.005 8.595 9.223 9.893 10.604 9
10 4.411 4.807 5.234 5.695 6.192 6.727 7.305 7.926 8.594 9.313 10.086 10.915 11.806 12.761 13.786 10
11 5.117 5.624 6.176 6.777 7.430 8.140 8.912 9.749 10.657 11.642 12.708 13.862 15.112 16.462 17.922 11
12 5.936 6.580 7.288 8.064 8.916 9.850 10.872 11.991 13.215 14.552 16.012 17.605 19.343 21.236 23.298 12
13 6.886 7.699 8.599 9.596 10.699 11.918 13.264 14.749 16.386 18.190 20.175 22.359 24.759 27.395 30.288 13
14 7.988 9.007 10.147 11.420 12.839 14.421 16.182 18.141 20.319 22.737 25.421 28.396 31.691 35.339 39.374 14
15 9.266 10.539 11.974 13.590 15.407 17.449 19.742 22.314 25.196 28.422 32.030 36.062 40.565 45.587 51.186 15
20 19.461 23.106 27.393 32.429 38.338 45.259 53.358 62.821 73.864 86.736 101.721 119.145 139.380 162.852 190.050 20
25 40.874 50.658 62.669 77.388 95.396 117.391 144.210 176.859 216.542 264.698 323.045 393.634 478.905 581.759 705.641 25
Remember to regularly save your work
FUTURE VALUE of a £1 annuity at i% and n periods Sheet 19 of 21

Module Code: ACFI3310/3390

REFERRED/DEFERRED
1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1
2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.110 2.120 2.130 2.140 2.150 2
3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.342 3.374 3.407 3.440 3.473 3
4 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.710 4.779 4.850 4.921 4.993 4
5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.228 6.353 6.480 6.610 6.742 5
6 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 7.913 8.115 8.323 8.536 8.754 6
7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 9.783 10.089 10.405 10.730 11.067 7
8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.637 11.028 11.436 11.859 12.300 12.757 13.233 13.727 8
9 9.369 9.755 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.579 14.164 14.776 15.416 16.085 16.786 9
10 10.462 10.950 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 16.722 17.549 18.420 19.337 20.304 10
11 11.567 12.169 12.808 13.486 14.207 14.972 15.784 16.645 17.560 18.531 19.561 20.655 21.814 23.045 24.349 11
12 12.683 13.412 14.192 15.026 15.917 16.870 17.888 18.977 20.141 21.384 22.713 24.133 25.650 27.271 29.002 12
13 13.809 14.680 15.618 16.627 17.713 18.882 20.141 21.495 22.953 24.523 26.212 28.029 29.985 32.089 34.352 13
14 14.947 15.974 17.086 18.292 19.599 21.015 22.550 24.215 26.019 27.975 30.095 32.393 34.883 37.581 40.505 14
15 16.097 17.293 18.599 20.024 21.579 23.276 25.129 27.152 29.361 31.772 34.405 37.280 40.417 43.842 47.580 15
20 22.019 24.297 26.870 29.778 33.066 36.786 40.995 45.762 51.160 57.275 64.203 72.052 80.947 91.025 102.444 20
25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 114.413 133.334 155.620 181.871 212.793 25

0.160 0.170 0.180 0.190 0.200 0.210 0.220 0.230 0.240 0.250 0.260 0.270 0.280 0.290 0.300
1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1
2 2.160 2.170 2.180 2.190 2.200 2.210 2.220 2.230 2.240 2.250 2.260 2.270 2.280 2.290 2.300 2
3 3.506 3.539 3.572 3.606 3.640 3.674 3.708 3.743 3.778 3.813 3.848 3.883 3.918 3.954 3.990 3
4 5.066 5.141 5.215 5.291 5.368 5.446 5.524 5.604 5.684 5.766 5.848 5.931 6.016 6.101 6.187 4
5 6.877 7.014 7.154 7.297 7.442 7.589 7.740 7.893 8.048 8.207 8.368 8.533 8.700 8.870 9.043 5
6 8.977 9.207 9.442 9.683 9.930 10.183 10.442 10.708 10.980 11.259 11.544 11.837 12.136 12.442 12.756 6
7 11.414 11.772 12.142 12.523 12.916 13.321 13.740 14.171 14.615 15.073 15.546 16.032 16.534 17.051 17.583 7
8 14.240 14.773 15.327 15.902 16.499 17.119 17.762 18.430 19.123 19.842 20.588 21.361 22.163 22.995 23.858 8
9 17.519 18.285 19.086 19.923 20.799 21.714 22.670 23.669 24.712 25.802 26.940 28.129 29.369 30.664 32.015 9
10 21.321 22.393 23.521 24.709 25.959 27.274 28.657 30.113 31.643 33.253 34.945 36.723 38.593 40.556 42.619 10
11 25.733 27.200 28.755 30.404 32.150 34.001 35.962 38.039 40.238 42.566 45.031 47.639 50.398 53.318 56.405 11
12 30.850 32.824 34.931 37.180 39.581 42.142 44.874 47.788 50.895 54.208 57.739 61.501 65.510 69.780 74.327 12
13 36.786 39.404 42.219 45.244 48.497 51.991 55.746 59.779 64.110 68.760 73.751 79.107 84.853 91.016 97.625 13
14 43.672 47.103 50.818 54.841 59.196 63.909 69.010 74.528 80.496 86.949 93.926 101.465 109.612 118.411 127.913 14
15 51.660 56.110 60.965 66.261 72.035 78.330 85.192 92.669 100.815 109.687 119.347 129.861 141.303 153.750 167.286 15
20 115.380 130.033 146.628 165.418 186.688 210.758 237.989 268.785 303.601 342.945 387.389 437.573 494.213 558.112 630.165 20
25 249.214 292.105 342.603 402.042 471.981 554.242 650.955 764.605 898.092 1054.791 1238.636 1454.201 1706.803 2002.616 2348.803 25
Remember to regularly save your work
 Sheet 20 of 21

Module Code: ACFI3310/3390

REFERRED/DEFERRED

Cumulative normal probability tables (Z-Values)

Remember to regularly save your work

 Sheet 21 of 21

Module Code: ACFI3310/3390

REFERRED/DEFERRED

Cumulative normal probability tables (Z-Values)

Remember to regularly save your work