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
Homework Chapter 4‚ Week 3 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? C. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. If the interest rate is low on a loan‚ the amount of repayment is low. 2. Which of the following statements is CORRECT? C. to solve for I‚ one must identify the value of I that causes the PV of
Premium Investment Compound interest Money
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
Top of Form 1. __________ is concerned with the acquisition‚ financing‚ and management of assets with some overall goal in mind. Financial management Profit maximization Agency theory Social responsibility 2. Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored. principals; agents; agents agents; principals; principals
Premium Balance sheet Investment Generally Accepted Accounting Principles
Shark Fin Soup Report Academic Research and Communication Skills Dr. Chris Tan Date: 19 June 2012 Rattikorn Intorncharoen Mew ID# 0002JDF111 Felita Dea Setiawan ID# 0003JDF111 Genevivie teo ID#0013PDF711 Margareth Tesalonika ID# Vineta Chugh ID#0011PDF711 Content Page Introduction 3 Shark Fin’s Procedure 4 Consumer of Shark fin soup 6 Production of shark fin 8 Effect of the shark fin soup 10 Sharks and ecosystem 11 Conclusion
Premium Shark
Quiz 2 Econ 201 1.The aggregate expenditure model focuses on the relationship between ________ and ________ in the short run‚ assuming ________ is constant. A) total income; real GDP; the price level B) total production; total income; real GDP C) total spending; real GDP; the price level D) total spending; real GDP; total income 2.In 2001‚ Cisco Systems was surprised by a decline in demand for their equipment‚ resulting in an unexpected increase in
Premium Economics Inflation Supply and demand
IE181 Quiz 1 – Model Formulation Formulate the following problems. 1. A trade magazine reports the rated exposure (people/month/peso advertising outlay) for each of five media: TV‚ radio‚ magazines‚ newspapers and outdoor advertising as 22‚ 12‚ 15‚ 10 and 5‚ respectively. The advertising company wants to develop an optimal media mix restricted to the following conditions: a. The total advertising budget is P1 million. b. No more than 50% of the budget is to be expended
Premium BMW Advertising Cost
Question 1 2 / 2 pts What is a capital investment? What is a capital investment? using money to buy goods or services issuing shares of stock of the corporation authorizing and issuing shares of common stock by a multinational corporation committing resources to projects that have costs and benefits well into the future Correct! Question 2 2 / 2 pts Estimating the expected cash inflows and outflows from proposed projects is performed in what step of the
Premium Net present value Investment
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
Financial Management 1. Happy Valley‚ Inc. stock is valued at $51.40 a share. The company pays a constant dividend of $3.80. What is the required return on this stock? Po = D/Rs $51.40 = $3.80/Rs Rs = 7.39% 2. The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year‚ and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company’s beta is 1.15‚ the market risk premium is 5.50%
Premium Stock Stock market Preferred stock