Capital Contribution and Interest on CapitalNY & Partners has been established since 2015. The partnership business is currently owned by Nairn and Yusof. The following are the terms of partnership agreement: Naim Yusof i. Capital contribution RM50,000 RM50,000 ii. Int...
Individual Coursework Question 1: Compare and contrast a person who is risk averse to a person who is a risk lover. Provide, with an example to illustrate your understanding, an economic explanation of when an individual is risk averse or risk loving. Question 2: Define maximum expected utility for consumers. Is there a situation where a person might not maximise his/her expected utility? Justify your answer. Question 3:Evaluate this statement &l...
Problem 1: Mortgage Payment CalculationSam and Ella are buying their first home. The cost of the house is $360,000. They put 20% down and finance the balance through a 25-year mortgage at i(2) = 4.50%. They have a choice of two mortgages: Mortgage A: Level monthly payments Mortgage B: First monthly payment = $2205.23; Succeeding monthly payments decrease by $5 (a)For mortgage A, how much interest is paid in the 18th payment? How much principal i...
What is an index fund? Why is it a safer investment than picking individual equities (stocks)?In groups of 2, you will be using skills that we have learned in chapters 3 and 12 to perform a few mainstream analytic tools that are used to measure the performance and predict future performance of certain equities (stocks) in the S&P 500. I know that sounds daunting – but you will be surprised just how basic some of these calculations are ...
Project Payoffs and ProbabilitiesSuppose a borrower knows at time t = 0 that it will have available at time t = 1 an opportunity to invest $340 in a risky project that will pay off at time t = 2. The borrower knows that it will be able to invest in one of two mutually exclusive projects, S or R, each requiring a $340 investment. If the borrower invests in S at time t = 1, the project will yield a gross payoff of $620 with a probability of 0.8 an...
Part A - QUESTION 1 Construct a line chart for your given brand of rice. Comment on any features of interest. QUESTION 2 Estimate a model of volume sales using a trend component. In other words, estimate the following: Where yt = Volume sales in period tT = Trend Comment on your findings. How do your findings for the trend variable compare to your observations in Question 1? Hint : To complete this step, you must create a trend ...
Adroit Company has the following information that has been extracted from the accounting records and bank statement of the company at 30 June 2019. Closing balance on the bank statement $12 620 Credit Cash receipts of 30 June which were deposited on 30 June did not appear on the bank statement $6 350 Outstanding cheques: No. 634 of $2 720 and No. 688 of $2 000 Prepare a bank reconciliation statement at 30 June 2019 for Adroit Com...
Learning Outcomes Covered by this assessmentLearning Outcomes Covered by this assessment. 1 Assess and evaluate the theoretical basis of financial strategic decision making 2 Analyse and interpret data, and by the integration of theory and practice, investigate and apply relevant tools to the assessment of a variety of business problems 3 Evaluate and synthesise the problem solving mechanisms from strategic financial decision making and ass...
For this individual assignment, you will read the case, analyze it and write a report to the owner, John Davidson, to present your recommendation on the business and investment decision. You may consider the following guided questions to prepare your report. If you have made assumption(s) as part of the case analysis, please include them in the report.?Using NPV analysis, should Magic Timber and Steel (Magic) purchase the new Delta finishing mach...
ask 1: Recruitment questionsJohn is hoping to recruit two new salespeople for the team. He has added a page to the agency’s website, titled ‘Come and work in real estate’, which describes the work and invites people to submit questions.The branch manager has asked you to draft brief answers to some of these questions. In each case you need to refer to the relevant section(and sub-section if relevant) of the Real Estate Agents A...
Investor Preferences and Risk ToleranceTask: Investors differ widely in their preferences and tolerance for risk. Retirees are in need of known cash flows since they no longer work and hence generally will not accept much risk, younger people much further removed from retirement are generally willing and able to take on more risk, but only on the promise of more return. The positive relationship between risk and return is a fundamental relation...
Firm's Investment DecisionsPurpose Investment decision and financing decision are vital to the survival of a business. The purpose of this assessment is to explore some advanced Capital Budgeting and Valuation techniques introduced in this subject to help make such decisions. Context In this activity, you will apply the time value of money techniques to evaluate the organisation investment and financing options as given below. This activity asse...
Ratio and Company Analysis1.Executive summary, analysis, conclusion 2. 14- Ratio and Company Analysis comment on the performance( formulae provided in the document) 3. Provide an opinion on the financial health of the company. 4. Based on your analysis, highlight areas that you believe the entity may pursue in order to expand/ grow its operations. You may also consider areas that it may consider to minimize exposure to various risks. 5. Referenc...
Statement of Profit or Loss T shirts Ltd You are a finance trainee for a company of Vests plc and have been asked by your marketing manager to review the business of your key competitor T-shirts plc and to assist her with helping the marketing team understand financial information. You know that T-shirts plc is struggling in the current economic climate and that other expenses have risen as a result of an aggressive advertising campaign...
Formative and Summative AssessmentsAll assessments are designed to support your learning and help you develop a deeper understanding of the topics covered in your module. • Formative assessment provides an opportunity to learn and do not contribute to your grade. - Individual report draft outline submission without word limit. Students can make a draft or descriptive outline, an outline that is based on your first draft of the individua...