Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question :
(a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Project B which has an outlay of Rs 150,000. The Certainty Equivalent Approach is employed in computing risky investments. The current yield on treasury bills is 0.05 and the company uses this as the riskless rate. The evaluated values of net cash flows with their respective certainty equivalents are:
Required:
i. Which Project could be acceptable to the company?ii. Justify which Project is riskier? iii. If the company was to use the risk adjusted discount rate method, which Project could be analysed with higher rate?
(b) If the required rate is 10 percent, evaluate the present value of the cash flow streams detailed below:
I. Rs 100 at the end of year 1. II. Rs 100 at the end of year 4. III. Rs 100 at the end of year 3 and year 5. IV. Rs 100 for the next 10 years ( for years 1 through 10).
(c) Miss. Kiran has in her possession 300 preference shares of Cintex company Ltd, which currently sells for Rs 400 per share and pays an annual dividend of Rs 34 per share.
I. Determine Miss Kiran's expected return. II. If Miss Kiran needs an 8 per cent return, given the price, should she sell or buy more stock.
Ivan is making several entries into the general journal at the restaurant where he serves as an accountant. The main difference between entries for routine business transactions an
What is the Investment evaluation Investment evaluation the primary purpose of measuring the cost of capital is its use as a financial standard evaluating investment projects
Explain the statement: “Exposure is the regression coefficient”. Answer: Exposure to currency risk can be suitably calculated by the sensitivity of the firm’s future cash flows a
Do you guys provide Working Capital Financing assignment help? I need writing a report on Working Capital Financing and it is about 2000 words. Let me know. I need to buy your solu
net current asset forecast method
1. role financial intermediaries 2. nature and role of money markets
what is amount of cash dividend if investor buys share of 100 at premium of 400.
Inventory T ur nover In the accounting, a measure of the number of times that the average amount of inventory on hand is sold within a given time of period. In the o
The United States has experienced continuous current account deficits as the early 1980s. What do you think are the major causes for the deficits? What would be the results of cont
The price-yield relationship of a non-callable or a non-putable bond is convex because price and yield are inversely proportional. Figure 1 shows the price-yield
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd