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Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in 10 year long-term debt instruments issued by AAA rate Commercial bank. The broker explains that these bonds are entitled to the principal and interest payments but not backed by any security or pool of assets.

Requirements:

List down any four questions you would ask your broker to assess the risk of this investment opportunity?


Mr. Kohli is planning to invest in the share market. He wants to study the Balance
Sheet of Amul Industries. He wants your guidance in finding the various elements of
the Balance Sheet of Amul Industries. Kindly discuss the same
Karagiri is a Pune based startup that works with 800 families across India. The startup is in the business of handloom saris. They converted the pandemic period in to an opportunity. The business owners realized that accounting is essential to permit informed judgements and decisions by the user of accounts. In the light of given definition of accounting, discuss about users and uses of accounting information
What might be the objective or objectives of each of the following nonprofit institutions?
a. The engineering college at a major state university
b. A police department in a city
c. The emergency room of a hospital
d. A museum
Using map of isoquants and isocosts show the role of relative input prices and relative productivities in the determination of least cost combination
The manager of a sporting goods store uses cost-plus pricing to determine the profit-maximizing price of bicycles. The cost of a bicycle to the store is $80. The manager estimates that the price elasticity of demand is –3.0. What is the profit-maximizing price?
2. Cricket World Cup (CWC) is considering a project proposal which requires an initial investment of $72,625 and it is expected to have net cash flows of $15,000 per year for 8 years. The firm cash flows are discounted at a rate of 12 percent.
a. What is the project’s Net Present Value (NPV)? (Rounded to 2 decimal places)
b. What is the project’s discounted payback period? (Rounded to 2 decimal places)
Burke Tires just paid a dividend of D 0 = ₱ 1.32. Analysts expect the company's dividend to grow by 30%
this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this
low-risk stock is 9.00%. What is the best estimate of the stock’s current market value?
Leather Goods Inc. wants to expand its product line into wallets. It is considering producing 50,000 units per year. The price will be $15 per wallet the first year and the price will increase 3% per year. The variable cost is expected to be $10 per wallet and will increase by 5% per year. The machine will cost $400,000 and will have an economic life of 5 years. It will be fully depreciated using the straight line method. The discount rate is 15% and the corporate tax is 34%. What is the NPV of the investment?
An automobile manufacturer estimates that total variable costs will be $500 million and total fixed costs will be $1 billion in the next year. In setting price it is assumed that sales will be 80 percent of the firm’s 125,000 vehicle per year capacity, or 100,000 units. The target rate of return is 10 percent, which is to be earned on an investment of $2 billion. If prices are set on a cost-plus basis, what prices should be charged for each automobile?