What is corporate finance

Assignment Help Finance Basics
Reference no: EM133069826

-What is Corporate Finance and what does it include?

-What is the importance of corporate finance?

-Explain in detail the phases of Corporate Financing?

-What is the formula for NPV?

-Nice Ltd wants to expand its business and so it is willing to invest Rs 10,00,000. The investment is said to bring an inflow of Rs. 1,00,000 in first year, 2,50,000 in the second year, 3,50,000 in third year, 2,65,000 in fourth year and 4,15,000 in fifth year. Assuming the discount rate to be 9%. Calculate NPV for each year using the formula and tabulate the same. Based on the NPV so calculated, give reasons as to whether the project can be accepted or rejected?

-Assume Company A invests Rs.1 million in a project that is expected to save the company Rs.250,000 each year. What is the pay back period for this project? Consider another project that costs Rs200,000 with no associated cash savings will make the company an incremental Rs100,000 each year for the next 20 years at Rs2 million.

How long will it take to pay the investment back? Based solely on the payback period method, which project is a better investment?

Reference no: EM133069826

Questions Cloud

Determining the value of money : 1. Reynaldo SepĂșlveda is retiring in 20 years and currently has savings of $ 125,000. Reynaldo thinks he will need $ 650,000 at the beginning of his retirement
Compute the valuation for the December : Wildhorse Company is preparing the annual financial statements dated December 31, 2020. Compute the valuation for the December 31, 2020
Explain the concept of option to expand : ABC Builders Pvt. Ltd. is estimating the feasibility of entering into a contract to build and operate the metro rail network in Surat. As part of the financial
Essay on clinical educator vs academic educator : Essay on clinical educator vs academic educator
What is corporate finance : What is Corporate Finance and what does it include? What is the importance of corporate finance?
What is the percentage change in the price : Laurel, Inc., and Hardy Corp. both have 5.8 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, I
What is the promised yield-to-maturity : Prices for zero-coupon corporate bonds with face values of $1,000 and one year until maturity are summarized in the following table:
Find the net amount to be recognized : The fair value less costs to sell of the herd at Dec. 31, 2019 is 1,400,000. Find the net amount to be recognized in 2019 profit or loss
Find the ordinary interest : A loan for $2,000 with a simple annual interest rate of 20% was made on September 4 and was due on November 5. Find the ordinary interest

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the bonds price a 6 year circular file bond pays

a bond yield with a face value of 1000 has a current yield of7 and a coupon rate of 8. what is the bonds price?a 6

  What is the company diluted eps

Suppose that Holiday Roads also had $500,000 of 10% convertible subordinated debentures outstanding at the beginning and end of 2014.

  What is the npv of the stock offer

Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by $1,011,64

  What should lee and marta include in a letter of instruction

What should Lee and Marta include in a letter of last instructions? How might the Howards use trusts to benefit their grandchildren?

  Current trends in retailing-changing demographic

What are some present trends in retailing? How have changing demographics, such as the aging population and changes in family structure, affected retail trends?

  Explain why many risk managers prefer to use forwards

Explain why many risk managers prefer to use forwards rather than options as their main instruments for managing financial risk?

  What is the current price of the bond

Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 12 years and a yield to maturity of 10.33 percent, compounded semi-annually. What is the current price of the bond?

  What are the total proceeds from the ipo

A company is doing an IPO underwritten by an investment bank. The company plans to issue 500,000 ordinary shares. The investment bank offers

  Discuss about the stock option with an exercise price

You buy a stock option with an exercise price of $50. The cost of the option is $4. If the stock ends up at $56, indicate whether you have a profit.

  What is the monthly annuity payment under this schedule

The remaining balance will be $120,000. The bank will loan you this remaining balance at 4.375% APR. You will make monthly payments with a 20-year payment schedule. What is the monthly annuity payment under this schedule.

  What is the price per share of the combined corporation

Your company has earnings per share of $3. It has 1 million shares? outstanding, each of which has a price of $38.

  Define valuation

Discuss and explain valuation, and describe why it is important for the financial manager to understand the valuation process?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd