Finance Answers

what are national income statistics of a country

Which of the following statement regarding stock "spread" is correct?

A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity

The bid-offer spread is the difference between the prices quoted for sale and for purchase.

A stock's bid-offer spread is the sole component of a transaction cost.

All of these answers.

1. What are some of the tasks investment banks undertake when they advise companies?

Negotiate the terms of the acquisition between the acquiring and acquired business.

All of these answers.

Prepare the company's pitch book.

Find companies that might be interested in acquiring the business.

Find internal rate of return for the project whose cash flows are as flows: 8
Initial investment = Rs.5,00,000
Annual benefit = Rs. 1,50,000
Annual cost = Rs.30,000
Salvage value = Rs. 40,000
MARR = 12% per year

perform sensitivity analysis using PW Method over a range of (+ or -) 20% in
i. initial investment. ii. net annual revenue
iii. salvage value iv. useful life:

Initial investment (Rs) = 200,000
Annual revenue (Rs) =50,000
Annual expenses (Rs) =5,000
Salvage values (Rs) =25,000
Useful life =10 yrs
MARR =12% Per year
Draw also the sensitivity graph.

Express cash flow as uniform payment series for 10
years that is equivalent to a payment series of Rs. 50,000 at the end of first year, decreasing by Rs.
5,000 each year over 10 years at interest rate of 16% per year compounded annually.

Evaluate the following project with the help of ERR for external
reinvestment rate 20% per year and MARR 18% per year. 7
Initial investment =Rs. 4,000,000
Expected life =8 Years
Salvage value =Rs. 50,000
Annual expenses =Rs. 160,000
Annual revenue =Rs. 320,000

Describe different categories of investments in financial assets and list the accounts used by giving examples

Question 5

Without using finance calculator,

Noel bought a house by making a down payment of RM 45,000. The balance was borrowed from a bank which charged interest of 7% compounded monthly for 25 years with monthly payments of RM 1413.56.

(a) Find the amount borrowed.

(b) What is the market price of the house?

(c) If he failed to make the first 5 payments, how much should he pay on the 6th payment to settle all the outstanding arrears?

Question 4

Without using finance calculator,

Refer to Johan's investment account, i.e. the monthly deposits made into his investment account:


Year Monthly deposits

2017 SR 500

2018 SR 400

2019 SR 700


Find the value of his investment at the end of 2019 if the investment rate was 12% compounded monthly. Find also the interest earned