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8
Answer:
a.Value of shares = 30,000,000 * $ 42 = $ 1260,000,000
Computation of WACC for CWC
Cost of equity –
Ke = Rf + β (Rm – Rf) (Pricing and Tribunal 2013)
Where,
Ke = cost of equity
Rm = Market return = 12.52%
Rf = Risk free rate = 3.5%
Β = Beta = 2.639
Hence,
Ke = 3.5 + 2.639 * (12.52 – 3.5)
= 3.5 + 23.8038 = 27.3038%
Therefore, cost...
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17
Answer:
Part 1 Business Performance Analysis
Statement of profit and loss analysis
Analysis of sales
Looking at the revenue of Hi-Tech PLC, it is observed that total sales of the company increase by 25.02% in 2017. Prior to this year, the amount was reported at £2022 million and it changed to £2528 million in 2017. Reason behind such upsurge is the expansion plan of the company, in which it has supplied new range of products in ...
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12
Answer:
Introduction:
In this report an attempt is made to analyse the future opportunities that can be gained by forming international fund and investing in international economy. In the report the list of objectives of investors are prepared then the rate of return will be assessed as the most important objective of all. Accordingly, in this document the investing company is looking to invest the funds of its client in attractive investment...
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5
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The assessment uses the monthly time series for the US stock market index, treasury bonds maturing in ten years, and the treasury bills maturing in three months. The data is assessed using the financial toolbox in MATLAV r2018b. The three assets are imported to the software for further analysis. The financial time series focus on the theory and practice of asset valuation over a given period of time. This paper analyses data obtained f...
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9
Answer:
1.1 Depicting the monthly payment:
Particulars
Value
Loan amount
$ 20,000,000
Tenure
120
Interest rate
0.67%
Monthly payment
$ 242,655
1.2 Depicting how much is the first payment interest:
Particulars
Value
Loan amount
$ 20,000,000
Interest rate
0.67%
First payment is interest
$ ...
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3
Answer:
Qualitative Questions
Net Present Value is one of the capital budgeting technique used for evaluating an investment proposal. It is the most common and popular method which measures the profitability of a project (Baker & English, 2011).
Internal rate of return is that rate which makes the NPV of all cash inflows of a project equals to the cash outflow of that project. It is also used for determining the profitability factor.
It i...
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23
Answer:
Part 2
First Interest Payment
1,33,333.33
Part 3
First principle payment
1,06,825.91
Part 4
After making monthly payment for 3 Years
...
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9
Answer:
1). Jason should lease the car as has been shown in the “Annexure - Car Lease” attached to the write up.
Interest rates or taxes play a factor in decision making as to whether to buy the car outright, lease, or finance the same. When financing the car, one normally spread the full cost of car including all the tax, delivery cost and other cost over the desired number of months and in return of the same pays an amount of inte...
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11
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Introduction
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Baking Royal Commission) was established by the Australian Government on 14th December 2017 pursuant to the Royal Commissions Act 1902 (Legg, 2019). The objective of this commission was to inquire and report on misconducts committed by major banking corporations in the banking, financial services, and superannuati...
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5
Answer:
Initial investment
85,000.00
Useful Life
5Years
Cost of Capital
0.12
Year
Cash Flows
1
18,000.00
...
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2
Answer
In any research project, validity and reliability of the findings are very crucial. However, the findings can be easily influenced by both the internal and external factors also known as the threats to validity and reliability of the research findings (Myera and Young 5). It should also be noted that collected data can easily influence the results. In our case, the occurrence of the September 11 terror attack shock the financial market an...
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2
Answer:
Introduction:
In any research project, validity and reliability of the findings are very crucial. However, the findings can be easily influenced by both the internal and external factors also known as the threats to validity and reliability of the research findings (Myera and Young 5). It should also be noted that collected data can easily influence the results. In our case, the occurrence of the September 11 terror attack shock the f...
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9
Answer:
Difference between security market line and capital market line
The capital market line takes place from combining the market portfolio and the risk-free asset. All related aspects along with CML have top-notch profiles of risk-return to the portfolio on the optimal scope (Smith, 2015). CML deviation is assessed by marking a tangent line straight from the intercept point over the efficient frontier unless and until the possible return...
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6
Answer:
Introduction
A brief report has been prepared on the First Abu Dhabi Bank and the net income of the last 10 years has been considered to calculate the growth and cost of equity of the company. Stock pricing has been done using two known methods, the calculation for which has been shown below. The sensitivity analysis has also been done to find out what would be the changes in the stock price in case the cost of equity and the gr...
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6
Answer:
Answer to 1
Particulars
Amount
Total interest rate
8%/12 = 0.67%
Amount for loan
$20,000,000.00
Time
10 * 12 = 120
Total monthly payments
$ 242,655.19
Answer to 2
Particulars
Amount
Total interest rate
8%/12 = 0.67%
Amount for ...
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Tags:
Australia 34 Business finance Pima Community College
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