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Question 1 Assuming that you have beeh appointed finance director of BPX Bhd. The company is considering investing in the production of an electronic device used in automobile. There are two mutually exclusive projects available to achieve the plan. Project I Return in one year (RM) 60,000 60,000 Project II State of economy Probability Good 0.3 58,000 62,000 Moderate 0.5 Poor 0.2 50,000 48,000 Project I or II would require an investment of RM50,000. The company has a current market value of RM800,000. The estimated returns of the market in one year are: Good state 20%, Moderate state 15% and Poor state 10% respectively. Assume that the treasury bill rate as 9%. The research director projects that the company's share price will move in line with the market. Required (in no more than 1,000 words, show all relevant workings) (a) Calculate i market variance ii. systematic risk for Project I iii. systematic risk for Project II iv. covariance between Project I and the market v. covariance…

The Doodad Company This case was developed by Rakesh Pandey, revised August 2021, February 2022 and August 2022 A Core project team has named their company, The Doodad Company (TDC) and they will be making doodads, also called gadgets, for their project. It is still early in the project, but the team has worked hard to gather data to start building their business model. Their objective is to have a one-year model for profit to present at the Business Development Workshop that will be coming up in a couple of weeks. Based on their preliminary interviews, the TDC team has determined that their likely retail price is going to be $10, and they have estimated their segment size to be about 10 million customers. While the team has not reviewed the BASES sales forecasting model in detail in marketing yet, they have been provided with some place holders for the year being considered (Year 2). The place holder values are as follows: Purchase Intent (PI) 15% Awareness 15% Distribution (ACV) 15 %…

1. Financial institutions in the U.S. economy Suppose Tyler decides to use $9,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Arcadia, a biomedical research firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Arcadia stock would give Tyler the firm. In the event that Arcadia runs into financial difficulty, will be paid first. Suppose Tyler chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Tyler's shares to decline. An increase in the perceived profitability of Arcadia will likely cause the value of Tyler's shares to rise. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Arcadia stock. Alternatively, Tyler…

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1. Financial institutions in the U.S. economy Suppose Andrew would like to use $3,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab-a practice known as finance. Buying a share of Touch Tech stock would give Andrew the firm. In the event that TouchTech runs into financial difficulty, will be paid first. Suppose Andrew decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. TouchTech earns revenue when Andrew purchases 100 shares, even if he purchases them from an existing shareholder. The price of his shares will rise if TouchTech issues additional shares of stock. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Andrew's shares to decline. Alternatively, Andrew could make a financial…

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Question 1 Go Electric is an EV (Electric vehicle) company in China that is considering investing in the brand- new 2-seater luxury racing car market with cash flow (A) or upgrading their 7-seater family car model to full EV with cash flow (B) as follows: Year 0 1234 Cash Flow (A) Cash Flow (B) -$170,000 -$18,000 10,000 10,000 25,000 6,000 25,000 380,000 10,000 8,000 The company has an internal rate of return of 15 percent requirement, REQUIRED: [All calculations should be carried out in two decimals in percentages, i.e., four decimals.] (a) If you apply the payback criterion, which investment will you choose? Why? (2 marks) (b) If you apply the discounted payback criterion, which investment will you choose? Why? (2 marks) (c) If you apply the NPV criterion, which investment will you choose? Why? (2 marks) (d) If you apply the IRR criterion, which investment will you choose? Why? (2 marks) (e) Based on your answers in (a) through (d), which project will you finally choose? Why? (2…

QUESTION a. As part of your company’s financial planning, you plan to buy a car for your newexecutive, which costs RM70,000. You have RM3,000 to invest as a lump sum today.You are a conservative investor and only invests in safe products. After approachingdifferent banks, you are offered the following investment opportunities: i. Mija Bank’s savings account with an interest rate of 10.8% compounded quarterly.ii. Miju Bank’s savings account with an interest rate of 11.5% compounded annually.iii. Miji Bank’s savings account with an interest rate of 9.3% compounded monthly.How long will it take for you to accumulate enough money to buy the car in each of theabove three cases?   b. Laila Ahmad, the financial manager for Tangga Kejayaan Incorporation, wishes toevaluate three prospective investments: A, B, and C. Laila will evaluate each of theseinvestments to decide whether they are superior to investments that his companyalready has in place, which have an expected return of 15% and a…

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What is the 'UNLEVERED PROFIT AFTER TAX' in the year 2019? Rs. 0.41 million Rs. 0.51 million Rs. 0.91 million Rs. 3.80 million

1. Financial institutions in the U.S. economy Suppose Gilberto would like to use $5,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as issued by NanoSpeck would give Gilberto will be paid first. Suppose instead Gilberto decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. finance. Buying a bond the firm. In the event that NanoSpeck runs into financial difficulty, An increase in the perceived profitability of NanoSpeck will likely cause the value of Gilberto's shares to rise. The price of his shares will rise if NanoSpeck issues additional shares of stock. The Dow Jones Industrial Average is an example of a stock exchange here he can purchase NanoSpeck stock. Alternatively, Gilberto could make a financial investment by…

Tome Breakeven analysis Paul Scott has a 2014 Cadillac that he wants to update with a satellite-based emergency response system so he will have access to roadside assistance should he need it. Adding this feature to his car requires a flat fee of $501, and the service provider requires monthly charges of $16. In his line of work as a traveling salesperson, he estimates that this device can save him time and money, about $35 per month. He plans to keep the car for another 3 years. a. Calculate the breakeven point for the device in months. b. Based on (a), should Paul have the system installed in his car? ents a. The breakeven point will be months. (Round to one decimal place.) an еТеxt edia Librai al Calculat r Resource Enter your answer in the answer box and then click Check Answer, ic Study es 1 part remaining Clear All Check Answer unication Tools > Ouestion 10 (0/1) Question 11 (0/1) Ouestion 12 (0/1) Ouestion 9 (0/1). Type here to search

Suppose Alex would like to use $8,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. finance. Buying a bond Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as Issued by NanoSpeck would give Alex the firm. In the event that NanoSpeck runs into financial difficulty, will be paid first. Suppose instead Alex decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. O An increase in the perceived profitability of NanoSpeck will likely cause the value of Alex's shares to rise. ONanoSpeck earns revenue when Alex purchases 100 shares, even if he purchases them ftrom an existing shareholder. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck stock. higher Alternatively, Alex could make a financial Investment by purchasing bonds issued by the…

1. Financial institutions in the U.S. economy Suppose Bob would like to use $4,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new lab—a practice known as    finance. Buying a bond issued by TouchTech would give Bob    the firm. In the event that TouchTech runs into financial difficulty,    will be paid first.   Suppose instead Bob decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. TouchTech earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder.   Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline.   The Dow Jones Industrial Average is an example of a stock exchange where he can purchase…

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QUESTION 1 An expected utility maximiser owns a car worth £60 000 and has a bank account with £20 000. The money in the bank is safe, but there is a 50% probability that the car will be stolen. The utility of wealth for the agent is u(y) = In(y) and they have no other assets.

Q4. Radio Frequency Identification (RFID) is a technology used by drivers with “speed passes” at toll booths and ranchers who track livestock from “farm to fork”. Thrift-Mart is implementing the technology to track products within its stores. The RFID-tagged products will result in better inventory control and save the company $1.3 million per month beginning 3 months from now. How much can the company afford to spend now to implement the technology at an interest rate of 12% per year, compounded monthly, if it wants to recover its investment in 2. years?

QUESTION ONE Bwembya has invented an electronic executive toy which can be activated to emit various noises on selection of one of six buttons.  The toy is pocket-sized and it is anticipated that it will retail for K10.  Bwembya is keen to exploit the toy and with the help of his business partner Bwalya, they consider the following possibilities. Sell the exclusive rights to the game to a major toy manufacturer  for K110,000. Sell the rights to the manufacturer for K10,000 but receive an annual payment of K35,000 for the next five years (the payment being made at the end of each). Set up a manufacturing and selling operation. The best estimates for the next five years are: Initial capital expenditure: K30,000. Residual value at the end of year 5: K5,000. Net working capital required to start up: K10,000. Year          Sales (units)        Sales price/unit           Variablecosts/unit             Fixed Costs p.a* 1                   20,000                        K10…

MINDTAP Q Search this course Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $27,000 per year for 2 years. If demand cash flows will be $7,000 per year for 2 years. Fethe's cost of capital is 13%. Do not round intermediate calculations. s bad (60% probability), then the net a. What is the expected NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest dollar. 24 b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision…

Outline of the case Jessica Hernandez wanted to open a retail outlet in a mall where she could sell gadgets. As her business started to grow, she realized she would soon need to hire one or two people and that will need money to pay for their compensation. In other words, she could not grow her business without borrowing. She plans to borrow $7,600 for 2 years however she doesn't have a very good credit rating so most finance companies want to charge her a high-interest rate. She finally finds a lender that will loan her the money at 12% compounded monthly. Discussion Question: 1. How much interest will Jessica have to pay to the lender? 2. If you were Jessica, will you lend money at a higher interest rate? Why? 3. What other options are available and what should she do, aside from borrowing money. 4. Assume Hernandez has successfully managed her business for several years. List five possible reasons she may still need to borrow from time to time.

SUB PARTS TO BE SOLVED Susan and Joe would like you to help them adress spme of their financial goals. They would like to know if susan should finance or use the cash allowance option to buy her next car (2020 Chrysler 300). Currently, they are still paying for her car that they bought in January of 2016 (Chrysler 300, MSRP: $40,000, Interest Rate 4.13%, Length=5 years, down payment 4,000).  Additional Information:  Finance Option: MSRP: $39,595 Interest Rate: 0% Length=36 months Down payment required: 30% Inflation=3% (Do not include residual value in your calculation) Cash Allowance Option:  MSRP: $39,595 Cash Allowance: $3,500 Down payment required: 30% Length=36 months Interest=4% Inflation=3% (Do not include residual value in your calculation) Current Car Loan: How much are they paying for their current car loan (monthly)? How much do they owe for their current loan (balance)? How much interest have they paid for the life of the loan (from January, 2016 to April 1, 2020) How much…

Time Value of Money Practice Scenarios Please note that some scenarios may have answers that are either correct or incorrect based on calculations, while others will require you to answer based on your own situation. When responding to those questions, explain your answers using what you currently understand about financial concepts.   You have a chance to sell an antique today for $1,000. You believe you will be able to sell the time in three years for $1,200. Should you sell it today or wait? Use March 2023’s inflation rate (5%)     It is with deep regret that I inform you that your rich uncle just passed away. His money is tied up in an investment. However, we can sell the investment and give you $15,000 today, or you will receive $20,000 in 5 years when the investment matures.  Which would you choose? Use March 2023’s inflation rate (5%)     You are investing in a retirement account and plan to deposit $5,000 per year into the account for the next 20 years, starting from…

Decisions Involving Uncertainty - End of Chapter Problem You currently have $10,000 in total wealth and rate your current utility at 4.25. You are deciding if you should invest your money in your friend's automotive restoration business. There is a 50% probability that you will double your money, in which case your total utility will be 6. There is a 50% probability that your friend's business will fail and you will lose the entire $10,000 and your total utility will be 2.5. a. What is the expected utility of investing in your friend's company? Expected utility: b. If you are risk averse, should you take the gamble and invest in your friend's company? invest in your friend's company. c. Would your answer to part b be different if there was a 75% chance that you would double your money by investing in your friend's business? Your answer to part b You

PI A manager at Shannon's Custom Cabinets is interested in purchasing a computer, software, and peripheral equipment costing $240,000 that would allow company salespeople to demonstrate to custor finished carpet installation would appear. Using this cost, the manager has determined that the investments net present value is $126.000, Compute the investment's profitability index Note: Round your answer to one decimal point de round 4.555 to 4.63 0

Please help G Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $22,100. The company already has $6.500 set aside for the purchase and will need to borrow the rest. ► Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $15,600 on November 1, 2023, for a period of 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,600, on May 1 and November 1 of each year plus 6 months of interest. (a) Prepare a payment schedule for the life of the note. (If answer is 0, please enter O. Do not leave any fields blank)

Chapter 13, Question 6. Attached is a similar question with answers. Please answer the same four parts for the new question

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Question No 03                                                                    If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why?   10 years financing to start a new project 5 years financing to construct a house on your land 3 years financing for a heavy duty generator 6 months financing for IPhone 12