Fin 320 Week 5

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Answer of the question immediately please

Item 4 of 25 The Chief Finance Officer of Kulit Company follows the policy of matching the maturity of assets with the maturity of financing. The implications of this policy include all of the following except Select the correct response: the seasonal expansion of cash, receivable and inventory should be financed by short-term debt. O long-term assets like plant and equipment should be financed with long-term debt or equity. O cash, receivable and inventory should be financed with long-term debt or equity the minimum level of cash, receivable and inventory required to stay in business can be considered permanent and financed with long-term debt or equity

The book I use for study: Principles of Managerial Finance [Global Edition] 16th Edition. Chad J. Zutter & Scott B. Smart Questions in image

Question 5 a) How do financial institutions help individuals to diversify their portfolio risks? Which financial institution is best able to achieve this goal? b) Suppose the real risk-free rate in 2022 was 3.50% and inflation for the year was 3.0 %. If investors had expected the same inflation rate as that actually realised, what was the exact nominal interest rate? c) Please define the risk-adjusted return on capital (RAROC).

Assume you are a financial analyst in an investment company, and you are required to analyse and compare the profitability dimensions of Natural Minerals Pty Ltd with the industry average for the year 2019 and 2020.                                                                                     Natural Minerals Pty Ltd Profitability   2020 2019 Industry Average Return on Equity Ratio = 12% 9% 10% Return on Assets Ratio = 26% 22% 24%

What can I recommend to this company to increase its liquidity position?

LG 3 P8-14 Portfolio analysis You have been given the expected return data shown in the first table on three assets-F, G, and H-over the period 2016-2019. Expected return Year Asset F Asset G Asset H 2016 16% 17% 14% 2017 2018 2019 19 781 16 15 14 631 15 16 17 Using these assets, you have isolated the three investment alternatives shown in the following table. Alternative Investment 1 100% of asset F 2 50% of asset F and 50% of asset G 3 50% of asset F and 50% of asset H a. Calculate the expected return over the 4-year period for each of the three alternatives. b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives. c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives. d. On the basis of your findings, which of the three investment alternatives do you recommend? Why?

Question 2 Kamer is an investment fund that invests on the Ghana Stock Exchange. In recent times the economy has gone through four different cycles which analyst believe may be repeated in the years ahead. Kamet is reviewing its investment strategy and is looking for the best way to make good returns for its clients. The returns on three assets selected by Kamet are provided below: Business Cycle Normal Boom Near Recession Recession You are required to: i. Compute the expected return and risk of each asset and advise Kamet as to which asset to invest more funds in on the basis of a) expected return on the assets b) riskiness of the assets (Hint: compute the coefficient of variation of each asset and select the asset with the lowest coefficient of variation; CV= B(RY Kamet has just informed you of three strategies (a). (b) and (c) that it wants to use. (a) In this strategy. Kamet will invest in the order of expected retum hence the highest proportion of its funds is to be invested…

Critically evaluate and compare the firm’s Profit and Loss Statement and the Cash Flow Statement and explain whether the two are in harmony of each other. Make suggestions for improvement, in  case you find any dissonance.

Question 3 You are the treasurer of a mid-cap company and you are analyzing two equity opportunities as potential investments for your working capital of US$100 million. You are given the following information and can only choose one investment. Investment A (cash flows in US$millions) Year Cashflow Year Cashflow 0 Investment B (cash flows in US$millions) Market Return -100 Market Variance 0 1 -100 54 1 67 11% 24% 2 28 76 31 2 89 3 98 3 You are also given the following information to aid with your investment decision: Risk Free Rate 3.50% 98 Investment A (COV/Market) Investment B (COV/Market) Discuss and evaluate whether to pick Investment A or Investment B. 4 121 4 176

Portfolio management Q8

The _________ is the internal rate of return a firm must earn on its investment in order to maintain the market value of its stock. a. gross profit margin b. IRR c. Cost of Capital d. net profit margin    A snapshot from Violet Flowers Ltd.'s financial information reveals the following for years 2018 and 2019: Item 2018 2019 Long Term Debt $4,600,000 $4,900,000 Interest expense $600,500 $870,000       Dividends $400,000 $590,000 Common Stock $1,740,000 $1,815,000 Additional paid-in surplus $4,200,000 $4,500,000   Violet Flowers' FCF for 2019 was: a. $300,000 b. $515,000 c. $785,000 d. $270,000

13. Strategy 4 - Asset allocation Asset allocation is the proportion of your overall investment portfolio that you have invested in various categories of assets. Typical asset categories include, for example, equities (stocks or stock mutual funds), bonds (or bond funds), and cash (or cash equivalents such as Treasury bills). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on various factors, such as your time horizon, your risk tolerance, and your investment philosophy: Risk Tolerance/Investment Philosophy Asset Allocation and Time Horizons 0–5 Years 6–10 Years 11+ Years   10% Cash 20% Bonds 100% Equities High Risk/Aggressive 30% Bonds 80% Equities     60% Equities               20% Cash 10% Cash 20% Bonds Moderate Risk/Moderate 40% Bonds 30% Bonds 80% Equities   40% Equities 60% Equities             35% Cash 20% Cash 10% Cash Low Risk/Conservative 40% Bonds 40% Bonds…

Portfolio management Q9

a) Return calculations For each of the investments shown in the  table(Attached), calculate the rate of return earned over the unspecified time period. b) ETHICS PROBLEM Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risks with those funds. What do you think are the ethical limits that managers should observe when taking risks with other people’s money?

Financial Forecast  This section outlines the projected financial statements. The financial statements should include detailed notes/explanations and assumptions to substantiate your projections. You can use imaginary numbers, however can you include a capital of $500,000 and a loan of $250,000 in the statments.  Please provide the Key assumptionsProvide the mentioned Financial statements:Income statementBalance sheetCash flow statementBreak-even analysis

Please help me to analyze this Financials

Previous Nex You are a financial Manager of Chevron Corp You need to assess the effectiveness of working capital management.of the company for 2018 using the following data What is th 2018 Payable turnover? 2017 Accoun Receivable 15 353 000 2018 Account Receivable 15,050 000 2017 Inventory = 5 585 000 2018 Inventory = 5 704.000 2017 Accounts Payable = 14 565.000 2018 Accounts Payable = 13 953 000 2017 Sales = 134 674 000 2018 Sales = 158 902.000 2017 Cost of Sales = 96 114.000 2018 Cost of Sales = 113 997 000 2017 Purchases = 95 114 000 2018 Purchases 123 435.000

Select 2–3 of the topics below and discuss how they each influence financial decisions regarding risk and return: The capital asset pricing model (CAPM) The constant–growth model Compute forward-looking expected return and risk Risk premiums

Respond to the following in a minimum of 175 words: Select 2–3 of the topics below and discuss how they each influence financial decisions regarding risk and return: The capital asset pricing model (CAPM) The constant–growth model Compute forward-looking expected return and risk Risk premiums