Finance Answers

Discuss the role of Nairobi Securities Exchange in the Kenyan economy (10 marks)

What are the practical difficulties of a small scale enterprise wishing to obtain credit to expand production?

Distinguish between internal and external sources of finance for a limited liability company.

Explain the various differences between forward and future contracts

A student spend $400, $700 and $ 600 in years 2, 4, and 7 on purchasing necessary stationery. The total worth of these spends in year 10 at an interest rate of 5% will be equivalent to:

An industrial setup can earn additional AED 7500 per year by installing a new production machine. If the applicable interest rate is 10% per year, how much should the company have over a 5 years to break even ?


A student spend $400, $700 and $ 600 in years 2, 4, and 7 on purchasing necessary stationery. The total worth of these spends in year 10 at an interest rate of 5% will be equivalent to:



How much money would be available in year 10 if $15000 is deposited each year in years 3 through 10 at an interest rate of 10% per year?

Different user group are interested in an entity's financial statement for different reasons.identify any four potential users groups and briefly describe the information which they may be interested in

Ernie Manufacturing has projected sales of $155.5 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price?

In the form of an extra dividend to shareholders or embark on a share repurchase scheme. Current profits are R3.40 per share and their shares currently trade for R35. Their abbreviated balance sheet before paying out the dividend is as follows:

Equity 350 000 Bank/cash 130 000 Debt 120 000 Other assets 340 000 470 000 470 000 Evaluate each alternative(i.e. pay the dividend or repurchase the shares) by:Calculating the number of shares in issue.

If I took out a loan July 1 of this year of NOK 500,000. The loan will be repaid with the same amount every year for four years. The interest rate is 5% and the interest is paid in arrears. Interest and installments will be paid for the first time on June 30 until next year. What is posted as interest expense this year?

Barton Industries expects next year's annual dividend, D1, to be $2.30 and it expects dividends to grow at a constant rate g = 4.8%. The firm's current common stock price, P0, is $22.80. If it needs to issue new common stock, the firm will encounter a 5.1% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. What is the flotation cost adjustment that must be added to its cost of retained earnings