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.
Financial Leverage In accounting and finance, the amount of long lasting debt that an organization has in relation to its equity the longer the ratio, the larger the lever
Explain the significance of the term additional funds needed . When the pro forma balance sheet is finished, total liabilities and total assets and equity will rarely match.
Differences in working capital for different industries Manufacturing Retail Service Inventories H
Compare and contrast a defined benefit and a defined contribution pension plan. In defined benefit plan retirement remuneration are determined by a formula that typically
What are the Objectives of Financial Management To make wise decisions a clear understanding of the objectives that are sought to be achieved in compulsory. Objectives provide
A technique for knowing a company's worth that is based on earnings and book value. It is also known as the residual income model, it seems at whether management's decisions cause
Call provision is the right of the issuer to call back and retire the issued bonds before the maturity date. The issuer may call the bond and retire the bond by paying
Futures Contract It is an obligation to purchase or sell an asset at an agreed-upon price on an exact future date. The buyer commits himself or herself to buy the asset, and th
Explain Vernon’s product life-cycle theory of FDI. What are the strength and weakness of the theory? Answer: As to the product life-cycle theory, companies undertake FDI at a ce
The call prices for various issues mentioned above are known as regular redemption prices. Point to be noted is that the regular redemption prices are above
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