Reference no: EM132933261
Section A - Compulsory Question
You have been appointed as a consultant to Quinn Enterprises which is a financial advisory firm. There are multiple projects for which your services are needed. a. X-Factor Bi-Cycles
Sam Lawrence is starting up a new bicycle business. He has developed a model structure for a unique electric bicycle and is planning up on how to finance the business. You have to advise him on the following areas:
i. At least 4 Different sources of funding the business launch that he could utilize? He is not keen to consider an IPO right now since it is a small operation.
[500 words]
ii. He has been told that he should approach ESG focused investors. Explain what this category and exactly what areas are considered under E, S & G. (450 words)
b. Investor Forum
The main focus of the upcoming Business Leaders Summit is on the recent global capital market developments. You will represent Quin Enterprises and speak to them on the changing role of Finance and the Financial leadership. Prior to the event you have been asked to submit a 1-page article on the relevant developments. [500 words]
c. The senior directors of the firm are out of touch with some modern Fintech developments and you have to prepare a briefing paper on the relevance of some of the modern technologies in the Finance function.
Identify how the following technology developments are having an impact on managerial finance function?
i. Artificial Intelligence
ii. Blockchain
iii. Robotic Process Automation
iv. Cloud computing
[600 words for i, ii, iii and iv]
d. Davinci Bakers
A nationwide bakery chain has approached you for advice on getting their pricing right since currently they are finding it hard to manage their growing expenses. The following cost information is from their recent operations.
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Description
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Value
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Number of Sandwiches sold
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10,000
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Total revenue
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90,000 USD
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Total Variable Costs
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40,000 USD
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Total Costs
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70,000 USD
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Total shares issued
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500,000
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Operating Profit
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20,000 USD
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Net Profit
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12,500 USD
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Dividends Pay Out ratio
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70%
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Total Assets
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5 Mn USD
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Long Term Assets
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3 Mn
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Total Liabilities
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3 Mn USD
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Current Liabilities
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300,000 USD
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1. Calculate the break even point of sandwiches for the bakery chain?
2. The differential amount per share between dividends per share & earnings per share?
3. Calculate the Current Ratio & the Net Profit Margin.
Attachment:- Projects.rar
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What is the current price of the bonds
: Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity
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What is the carrying amount of the financial asset
: The bonds mature on December 31, 2020 and pay interest of 10% annually every December 31 with a 12% effective yield. What is the carrying amount
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What is mpi times-interest-earned ratio
: What is MPI's times-interest-earned (TIE) ratio? MPI Incorporated has $8 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 10%
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Determine the net present value of the proposed expansion
: Adam Smith Inc. has a target debt-equity ratio. Use the weighted average cost of capital approach to determine the net present value of the proposed expansion.
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Calculate the break even point of sandwiches
: Explain what this category and exactly what areas are considered under E, S & G and Identify how the following technology developments are having an impact
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Compute the yield to maturity for each bond
: Compute the yield to maturity for each bond, 1, 2, 3, 4, and 5-year bond. Is the yield curve upward? sloping, downward? sloping, or? flat
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Calculate total cumulative remuneration expense for services
: Calculate the total Cumulative Remuneration Expense for services rendered as consideration for the share options granted that would be recognised by Black Ltd
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Calculate the balance of the deferred tax asset account
: Calculate the balance of the Deferred Tax Asset account that would appear in the financial statements of the company as at 30 June 20X1
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When is the loan due
: Question - The interest on a loan of P15, 000 is P4,500. if the rate is 15%, when is the loan due
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