Apply the DuPont Analysis to analyse GARs return on equity

Assignment Help Business Management

Reference no: EM132351430

As of March 2019, about 80% of GAR's shares are held by various financial institutions.

Question 1 (refer to screenshot)

(a) Calculate and analyse GAR's liquidity, leverage and asset management ratios for FY 2018 and 2017.

(b) Apply the DuPont Analysis to analyse GAR's return on equity.

Question 2

You have inherited $50,000 and want to invest for retirement. Deborah, your close friend working at a local investment bank shared with you two products available for investment. The first, Infinity Asia Fund, will pay its investors 3% per year for the first 5 years and 7% per year thereafter. The second, Global High Dividend Fund, pays its investors 6% per year forever.

(a) Calculate how much you will have in each fund in 12 years' time.

(b) Analyse which investment product you will choose if you wanted to retire in 30 years' time.

Question 3

Recently, you purchased an apartment and now need to take up a home renovation loan. OCBC Bank charges an interest of 5.8% per year, compounded daily. Whereas Maybank charges 5.88% per year, compounded monthly.

You are also considering buying a motor car and the terms of the loan offered by DBS Bank is summarised as follows:

• Loan amount = $35,000

• Tenure = 5 years

• Interest = 3% per year

• Instalment = Equal amount at the end of each month

(a) Analyse which bank you should choose for the home renovation loan.

(b) Calculate the amount to be paid for each instalment as well as interest for month 8 and 25. Describe and explain the observations you are able to make. (motor car)

Attachment:- Golden agri Resources.rar

Reference no: EM132351430

Questions Cloud

Job satisfaction and organizational commitment : Compare the difference between job satisfaction and organizational commitment. Determine which is more strongly related to performance for your selected company

Consider in order to make this virtual assignment effective : The project has a six- month deadline. What factors should you consider in order to make this virtual assignment effective?

Greatest challenge for managers when fostering teamwork : What do you think is the greatest challenge for managers when fostering teamwork? How do you think the challenge can be overcome?

Create new theme for the company teamwork training : Imagine that you are a leadership teamwork consultant. The new manager of a company has hired you to create a new theme for the company's teamwork training.

Apply the DuPont Analysis to analyse GARs return on equity : Calculate and analyse GAR's liquidity, leverage and asset management ratios for FY 2018 and 2017. Apply the DuPont Analysis to analyse GAR's return on equity.

NEWS WRITE-UPS : Each student will post 4 News Write Ups on the Discussion Board of the Blackboard. Very brief description of the event or the news.

Online storefront as additional source of revenue : Imagine that you are a manager at a brick-and-mortar store that has an online storefront as an additional source of revenue

Practice the measurement of net present value : The students to become familiar with and practice the measurement of Net Present Value (NPV), payback, and Weighted Average Cost of Capital

Finance and accounting-senior accountant analysis : Large discount retailers like Target and Walmart employ large teams of Finance and Accounting professionals to help measure and understand the financial health

User Account

All Pages