Answer all question (TEST 2) Question 1 a) Smart Corporation has to raise RM5‚000‚000 for its 5-year budget. The corporation has the following three (3) financial sources to be considered: Source I Issue preferred shares that pays 10% dividend on par value of RM100. The current market price of the preferred share is RM75 per share and its floatation cost is at 5% of the par value. Source II Issue bonds that pay 8% interest and mature in ten years. The corporation is planning to sell the
Premium Net present value Time value of money Internal rate of return
Minicase 4 Yield Curve Hypotheses and the Effects of Economic Events CONCEPTS IN THIS CASE term structure of interest rates default risk risk premium yield curve expectations hypotheses segmented markets theory preferred habitat theory liquidity premium theory Your employer (a bank) has decided to offer five-year loans to its small business customers. You have been presented the task of determining what the appropriate minimum interest rate should be for the most creditworthy customer
Premium Bond Interest
In Animal Farm by George Orwell there are two key chapters that can be compared. In chapter two it is the morning after the rebellion and the animals are overjoyed. “They woke at dawn” shows the beginning of a new day‚ this creates a sense of hope and represents the start of their new life without humans. However in chapter seven it is the night of the slaughters and the reader can see the caparison between the time of day when Orwell says “gilded by the level rays of the sun” This shows the sun
Premium Animal Farm George Orwell Nineteen Eighty-Four
1. Barker Corp. has a beta of 1.10‚ the real risk-free rate is 2.00%‚ investors expect a 3.00% future inflation rate‚ and the market risk premium is 4.70%. What is Barker’s required rate of return? Answer D | | | |2010 |21.00% | |2009 |-12.50% | |2008
Premium Interest Bond Stock
History 121 Chapter 7 #1. As the Minoans civilizations we have limited records but we can say they were masters of seas and great shipbuilder‚ which allow them the trade by the seas‚ also they have a base religion using bull leaping not only as a sport‚ if not as a penitence on their religion practice‚ they constructed big cities and palaces for their ruler an example is the Palace of Knossos where the legendary Kind of Minos lived. After the end of the Minoans civilizations there are not
Premium Ancient Greece Peloponnesian War Classical Athens
Chapter 7 Accounting for Financial Management ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 7-1 The balance sheet shows the assets‚ along with the sources of funds used to acquire the assets‚ at a point in time‚ say 12/31/07. The income statement shows the sales and profits that were produced during an interval of time‚ say the year 2007. An individual would have assets‚ and a net worth‚ and a balance sheet would detail these holdings. The individual would also have income and expenses‚
Premium Generally Accepted Accounting Principles Tax Taxation
1. Wtd Cost of Capital Global Technology’s capital structure is as follows: Debt 35% Preferred Stock 15 Common Equity 50 The aftertax cost of debt is 6.5%; the cost of preferred stock is 10%; and the cost of common equity (in the form of retained earnings) is 13.5. Calculate Global Technology’s weighted average cost of capital. | Prop | Cost | Weight | Composite | Debt | 35% | 6.50% | 0.35 | 2.275 | Preferred Stock | 15% | 10% | 0.15 | 1.5 | Common Equity |
Premium Weighted average cost of capital Stock Stock market
Debt is Good for You (01/25/2001) Franco Modigliani and Merton Miller published their famous theory about the optimal balance on debt and equity of the corporate finance. In the Modigliani –Miller theory they stated that the value of the firm is independent of firm’s capital structure. As the portion of debt goes up‚ the firm will be riskier‚ and the expected return will increase. In an efficient market‚ the business risk does not vary with leverage. But later‚ Modigliani –Miller theory modified
Premium Finance Stock market Debt
1.1) Belinda’s 2010-11 taxable income: Assessable Income Gross Salary $67‚500 Unfranked dividends $2‚300 Total Assessable Income $69‚800 Less Allowable deductions PAYG tax instalments deducted ($15‚500) Subscriptions ($130) Union fees ($600) Telephone expense ($280*30%) ($84) Total allowable deductions ($16‚314) Taxable Income $53‚486 Note: Stationery is considered to be expenditure of a private nature thus
Premium Investment Finance Financial markets
MKTG 489 – FINANCIAL EXERCISES (AY 2015) Due as an Excel (.xls) file via Titanium prior to class EXERCISE 1 Fred Flintstone has just become the product manager for Yabba Dabba Doo‚ a consumer packaged product with a retail price of $2.00. Retail margins on the product are 33%‚ while wholesalers take a 12% margin. Yabba and its direct competitors sell a total of 40 million units annually‚ and Yabba has 24% market share of this total. Variable manufacturing costs for Yabba are $0.09 per unit. Fixed
Premium Marketing Cost Variable cost