Classify the various investment avenues based on risk

Assignment Help Financial Accounting

Reference no: EM132504811

Question 1: Explain the different principles of finance. (While explaining the principles of finance, you are also expected to provide recommendations to the finance manager on how to make each decisions).

Question 2: According to you, which is the best option for investment for Ahmed. Justify your answer with relevant information from the case and theory.

Question 3: According to you, which is the best option for investment for Saeed. Justify your answer with relevant information from the case and theory.

Question 4: According to you, which is the best option for investment for Aisha. Justify your answer with relevant information from the case and theory.

Question 5: How much does Zamsam deposit today, to receive RO25,000 after five years?

Question 6: Classify the various investment avenues based on risk and return.

Question 7: COVID 19 outbreak has created financial problems for the corporate sector as well. As mentioned, the corporate sector is finding difficulty in managing their day to day operations because of lack of funds. Suggest the sources from which the corporates can borrow funds or finance their short-term requirements. According to you, which is the best financing source? Justify the reason for selection.

Question 8: If you are in place of Ahmed, which type of account/services will you prefer for each of his friends (Asim, Munir, Moemin and Saeed). Provide justification for each.

Question 9: What are the additional facilities/services that you can offer to Asim and Moemin in addition to the deposit accounts? Justify your answer.

Question 10: Al Nawa Manufacturing Company plans to invest its surplus funds. Different options are available. The company can either deposit the money in bank of purchase bonds that carries different maturities. At present, the bank is providing an interest rate of 7%. If the company invests RO300,000 in the bank account for five years, how much amount can they receive at the end of five years? (Show the calculation)

Question 11: The second option available for AlNawa Company is to buy bonds. At present, RO400,000 face value bond issued MHD Company has a coupon rate of 8%, with interest paid semi-annually, and matures in 10 years. If the bond is priced to yield 7%,
Mazoon Diary Products Company sold RO500,000 face value, commercial paper, for RO499,750, for 100 days. Calculate the yield on Commercial Paper.

Question 12: Asim invested RO20,000 in a bank account that provides 7% interest pa. Assume that the rate of inflation is 3.5%, calculate the real interest rate of return on investment. If Asim invests the deposit for one year, calculate how much will be the real return on investment.

Question 13: Suppose you are an individual investor and wish to invest in money market, what are the options available for investment? Briefly explain.

Question 14: Briefly explain the REPO and Reverse REPO as tools for open market operations. How does it influence the money supply in the market?

Attachment:- finace.zip

Reference no: EM132504811

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