New

Learn smart - Learn online. Upto 88% off on courses for a limited time. View Courses

Get 24x7 live help from our Top Tutors. All subjects covered.

250 words

### Students Who Viewed This Also Studied

9 Pages
###### ASB3309 Behaviorial Finance

The assignment comprises the following core stages: 1. Select a popular technical trading strategy. 2. Use your chosen strategy to identify promising investment opportunities. 3. Conduct hyp ...

Type

Programming

Subject

Finance

University

Singapore University of Social Sciences

103 Pages

Course

BSBSTR601

Subject

Finance

University

University of Tasmania

Season

Fall

64 Pages
###### Woodhouse Recruitment

IH Sydney Training Services Pty Ltd RTO Code: 91109 CRICOS Code: 02623G BSB STR601 Manage Innovation And Continuous improvement Task 2 – Project Task summary This assessment is ...

Course

BSBSTR601

Subject

Finance

University

University of Tasmania

Season

Fall

38 Pages
###### Finances for the Different Business Entities

Course

FBLT043

Subject

Finance

University

Coventry University

Season

Spring

## Question:

### Question 1 (3 marks)

What is the appropriate goal of financial managers? Can managers' decisions affect this goal in any way? If so, how?

### Question 2 (3 marks)

Donald purchased a 10 year maturity bond three years ago. The bonds pay annual coupons at a rate of 10% of the face value of \$1,000.  At the time when Donald purchased the bond, the yield to maturity was 8%.  If Donald sells the bond after receiving the fifth coupon payment when the bond's yield to maturity had fallen to 6%, what is Donald's effective annual yield on the investment.

### Question 3 (3 marks)

You have bought a house worth \$260,000 by taking a 15 year loan at an annual rate of 4% per annum compunded monthly, what will be the loan outstanding at the end of 5 years?

### Question 4 (3 marks)

A company currently pays a dividend of \$2 per share that is D0 =\$2. It is estimated that the company's dividend will grow at a rate of 20 percent for the next 2 years and thereafter the dividend will grow at a constant rate of 7 percent forever. The company's shares has a beta equal to 1.2, the risk free rate is 7.5 percent and the market risk premium is 4 percent. What is the shares current intrinsic value?

### Question 5 (3 marks)

To fund her retirement, Helen requires a portfolio with an expected return of 12 per cent per year over the next 30 years. She has decided to invest in Shares 1, 2, and 3, with 25 per cent in Share 1, 50 per cent in Share 2, and 25 per cent in Share 3. If Shares 1 and 2 have expected returns of 9 per cent and 10 per cent per year, respectively, then what is the minimum expected annual return for Share 3 that will enable Helen to achieve her investment requirement?

### Question 6 (10 marks)

(a) Rosemount Energy Company is installing new equipment at a cost of \$20,000,000. This project is expected to generate the following after tax net income and cash flow over its five-year life:

The company depreciates this equipment using the straight-line method over the life of the project. The company's cost of capital is 10% per annum.

1. What is the project's accounting rate of return (ARR)? (3 marks)
2. What is the project's payback period? (3 marks)
3. What is the project's net present value (NPV)? (2 marks)

(b) Differentiate between independent projects and mutually exclusive projects.(2 marks)

### Question 7 (10 marks)

a.Total risk can be decomposed into systematic risk and unsystematic risk. Explain each of these components of risk and how they are affected by increasing the number of securities in the portfolio.

1. The historical returns for the market and for Sakura Ltd, a firm in the share market is provided in the table below.Year
2. Calculate the expected return on the market and Sakura shares. (1 mark)
3. Calculate the standard deviation of the market returns and the standard deviation of the returns on Sakura Ltd.(1 mark)
4. Determine the correlation coefficient between the market return and the return on Sakura shares and hence calculate the Beta coefficient for Sakura Ltd. (2 marks)
5. What is the compensation for bearing systematic risk? (2 mark)
6. If the risk free rate is 5 percent would you consider the shares of Sakura Ltd as a good buy? (2 marks)

### Question 8 (10 marks)

The following information is extracted from the financial statements of XP Sports Limited:

(a) Briefly explain what you understand by the term 'operating cycle'.  (2 marks)

(b) What is the operating cycle for XP Sports Limited? (2 marks)

(c) What can you say about XP Sports accounts receivable and inventory management if it is known that the industry average operating cycle is 72 days?  (1 mark)

(d) Briefly explain what you understand by the 'cash conversion cycle'. (2 marks)

(e) What is the cash conversion cycle for XP Sports Limited? (2 marks)

(f) What can you say about XP Sports cash conversion cycle if it is known that the industry average cash conversion cycle is 42 days?               (1 mark)

### Question 9 (10 marks)

Nodebt Ltd has a capital structure of 100% ordinary equity with a current return on equity of 18%: Its Earnings before Interest and Taxation was \$142,857. Nodebt pays tax at the rate of 30%.

1. What is the current market value of Nodebt Ltd? (2 marks)
2. What is the Weighted Average Cost of Capital? (2marks)
3. What is the market value of Nodebt Ltd after it issues the debt. (1 mark)
4. What is the market value of Nodebt Ltd's equity after it issues the debt.(1 mark)
5. What is the cost of equity (ke) after it issues the debt. (1 mark)
6. What is the new Weighted Average Cost of Capital? (1mark)
7. Explain what has happened to the WACC and why? (2 marks)

### BUACC 3701 Financial Management

Solved by qualified expert

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

MyAssignmenthelp.com boasts a team of talented and highly skilled coursework writers based in UK who assist students in the best possible manner. Students, who need coursework help, find our services fulfilling and effective because we provide high quality help at affordable price. So, students who often search can someone do my coursework cheap or can experts Write my coursework for cheap get perfect solution at MyAssignmenthelp.com. They pay for best coursework and get it from us.

## More BUACC3701 BUACC 3701 Financial Management: Questions & Answers

Q

### ASB3309 Behaviorial Finance

The assignment comprises the following core stages: 1. Select a popular technical trading strategy. 2. Use your chosen strategy to identify promising investment opportunities. 3. Conduct hypothetical trades on at least 10 different stocks using Singapore Exchange www.sgx.com during the tra ...

Q

Leadership and Management 1 Leadership and Management By Leadership and Management 2 Contents INTRODUCTION ................................ ................................ ............................... ...

Q

### Woodhouse Recruitment

IH Sydney Training Services Pty Ltd RTO Code: 91109 CRICOS Code: 02623G BSB STR601 Manage Innovation And Continuous improvement Task 2 – Project Task summary This assessment is to be completed in the simulated work environment in ihBC College. For this assessment task, y ...

Q

### Finances for the Different Business Entities

SOURCE OF FINANCE Table of Contents Introduction ................................ ................................ ................................ ................................ ..... 2 Examination of different source of finances for the different business entities ...................... ...

### Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.