Reference no: EM132601642
Question 1. If you have Birr1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings?
Question 2. Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax is Birr 16 crore, Interest Coverage Ratio would be:
Question 3. Suppose you currently have $2,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 4%interest, compounded annually. How much will you have when the CD matures? How would your answer change if the interest rate were 5%, or 6%, or 20% respectively?
Question 4. Assume Project A has a present value of net cash inflows of $79,600 and an initial investment of $60,000. Project B has a present value of net cash inflows of $82,500 and an initial investment of $75,000. Assuming the projects are mutually exclusive, which project should management select? Justify your answer through work out.
|
Analysis and capstone preparation
: Based on your needs analysis and your capstone preparation, design a survey you can use to conduct a pre- and post-assessment for your capstone.
|
|
Computation of cost of capital for decision making purposes
: A capital budgeting technique which does not require the computation of cost of capital for decision making purposes is? Internal Rate of Return method
|
|
Explain what is international accounting standard board
: Explain what is the different between International Accounting Standard Board (IASB) and Australia Accounting Standard Board (AASB)?
|
|
Find the pay back technique is especially useful during time
: Find the pay back technique is especially useful during times? When the economy is growing at a steady rate coupled with minimal inflation.
|
|
Find interest coverage ratio would be
: What Interest Coverage Ratio would be, Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax is Birr 16 crore
|
|
What is the current value of one share of this stock
: The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock
|
|
Break-even level of ebit
: Jones Corp is considering two different capital structures. It currently has 18,500 shares of stock outstanding. It is considering issuing $100,000 of debt
|
|
Analyze the performance of the company
: Analyze the Performance of the Company on the basis of all of the "Cash Generating Activities"? Area of improvements for the next Financial Year.
|
|
Calculate the project-project k costs
: Project K costs $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12%. Calculate the project's:
|