Finance Answers

As a finance manager of Kersot Enterprise Limited, where the Board of Trustees is reviewing the mix of the capital structure of the enterprise based on target value and has decided to raise 40 percent of new funds from long-term debt, 10 percent from preferred shares, and 50 percent from ordinary shares with components of 5.6, 10.5 and 15.7 respectively.

Estimate percentage of this BEST MIX for the enterprise and support the decision taken.           

Morgan Stanley has a current cash flow (at time 0) of $3.4 m and pays no dividends. The present value of the company’s future cash flows is $14.6 m. The firm is entirely financed with equity and has 400,000 shares outstanding. Assume the dividend tax rate is zero.

1. Suppose the board of directors of Morgan Stanley announces its plan to payout 40% of its current cash flow as dividends to its shareholders. How can Andy, who owns 800 shares of Morgan Stanley stock, achieve a zero payout policy on his own?

Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been more willing to hold money?

Why were people in United States in the ninteenth century sometimes willing to he paid by check rather than with gold, even though they knew that there was a possibility that they check might bounce?

Discuss the principles of Pecking Order theory in respect to fundraising for capital investment. 

Directions: Please identify one thing on the site that you found very helpful. Identify and describe the item and encourage other students to take advantage of the item you found on: Nerd Wallet.

Context Link: https://www.nerdwallet.com/article/finance/how-to-budget

Instructions: Make sure to use proper grammar and punctuation in this college-level course in all correspondence. Please avoid “text” or “twitter speak” when corresponding.

Suppose an investor is given an investment opportunity that will provide a future value of Kshs 50,000 when it matures at the end of two years. How much would an earning of Kshs 50,000 be at the end of 2 years, at a rate of 10 percent?

Personal Budgeting

Personal budgeting can be very difficult. Nerd Wallet has an amazing website that covers all the basic steps to developing a personal financial budget and it also has great online tools.

Content Link: https://www.nerdwallet.com/article/finance/how-to-budget

Question - After reviewing the site - Please identify one thing on the site that you found very helpful. Identify and describe the item and encourage other students to take advantage of the item you found on Nerd Wallet.

Discussion Board Directions

Answer the questions above after reviewing the site:

Please identify one thing on the site that you found very helpful. Identify and describe the item and encourage other students to take advantage of the item you found on Nerd Wallet. Make sure to use proper grammar and punctuation in this college-level course in all correspondence. Please avoid “text” or “Twitter speak” when corresponding.

Discuss some of the manifestations of the globalization of world capital markets.

In two lists, rank the following money markets instruments in term of their liquidity and safety :

a) U.S Treasury bills

b) Negotiable CDs

c) Repurchase agreements

d) Commercial paper