Finance Answers

A young entrepreneur is about to set up a new firm production hats. She calculates that the variable cost of producing each hat will be €2 and fixed costs of production will be €10.000. She will be selling her hats at 10€ each. How many units dose she need to sell to break even?

Hos does government investment compliment private investment?

1) The company Old Co has a current stock price of $210 per share. Last year they paid an

annual dividend of $10 per share. Historically the dividend growth was 5% per year; the next dividend payment will be $10.50. What is the discount rate implied by this firm?

2)A competitor NewCo enters the market (same good, same technology, same market). The

company says they do not plan to pay a dividend for the first five years. Instead, they plan to

use the cash to make strategic acquisitions into new businesses. The company says they will

pay a dividend at the end of year 6 of $20 and then grow the dividend by 5% a year. What is

the present value of NewCo using the discount rate of OldCo?

the

company

Old

Co has a

current stock

price of $210 per share

. L

ast year

they

paid an

annual dividend of $10 per share. Historically the dividend growth was 5% per year

;

the next

dividend

payment will be $

1

0.50

. What is the discount rate implied by this firm?

Demonstrate the relationships and links between various international parity conditions, and explain the meanings and implications of each of them.

A has just announced a dividend of 16p. Investors expect its dividend to grow in the future at a rate of 6% and they require a rate of return of 15% from their shares. What is the company's current cum-div share price?

Suppose you have 50 units of inventory at the beginning of month of April 01, 2020, per unit cost is XXX [Suppose per unit cost at your own which must not match with someone else]. On 5th April, 2020 you purchased 100 more units at the rate of XXX, after 3 days on 8th April, 2020 you sold 70 units and on 10th April , 2020 purchased 120 units and the per unit cost is XXX.. On 15th April you sold 130 units.

After 5 days on 20th April you purchased 150 units at the rate of XXX, and 2 days later you purchased 50 units at the rate of XXX and on 30th April, 2020 you sold 200 units.

You are required to make table of inventory valuation under FIFO, LIFO and Average costing method.

Do the cultural and social economic contexts of countries influence the decision making in

banks

1.What is suggested by the international Fisher effect?

2. Defined transaction exposure

3.what is defined as effective exchange rate?

4.what is the balance of payments? specify its major categories

A student is considering opening a business selling ice cream next summer. The student views this as an alternative to taking summer employment with a local firm where he would earn £4,000 during the 3-month summer period. It would cost £2,000 to obtain a license to operate their stand, £1,200 per month to rent the stand with the necessary equipment and £150 per month for insurance. Petrol costs are estimated at £12 per day and are not affected by sales. The ice cream ingredients can be bought for £5.60 per kilo and cones cost £1.80 per dozen. The ice cream cones contain 100 grams of ice cream and would sell for £1.50 each.


d) Chocolate flakes can be bought at £5 for a box of 20, and the ice creams with flakes are sold for £2.20. If 40% of the customers buy these, calculate the effect of this on the output necessary to make normal profit.

e) If the student can sell 200 ice creams a day, 40% with flakes, estimate the economic profit he would make. Advise him whether he should enter the business.