Finance Answers

As a financial manager of a large firm, you plan to borrow $100 million over the next year.

i). Mention 2 most likely ways in which you can borrow $100 million?

ii). How do individuals indirectly provide the financing for your firm when they maintain deposits at depository institutions.

Should managers estimate intrinsic values or leave that to outside security analysts? Explain

Damon is employed as a manager with REDL which conducts a property development business in HK. Damon provided the following information relating to the year ended 31/3/2022:

(1) Damon’s basic salary: $60,000 per month.

2) REDL purchased a medical insurance policy for Damon and his family at a cost of $16,000. Damon received a reimbursement of medical expenses from medical insurance scheme which cost him $12,000.

(3) REDL rented a property at a monthly rent of $15,000 starting from 1/6/ 2021 for a two-year period and provided this property rent-free to Damon.

(4) REDL provided Damon with two round-trip tickets to Paris for a holiday. The air tickets cost REDL $30,000, and Damon could sell them for $20,000.

(7) Damon’s stepmother (aged 54) lives in a registered nursing home in Shatin. The nursing home expenses of $10,000 per month were paid by Damon.

(8) Damon and his wife made cash donations totaling $10,000 to various approved charities.

(9) During the year, Damon contributed $18,000 to the MPF.

Describe any 6 types of bonds that are used to source funds for enterprise. 

In respect to financial management compare and contrast money and capital markets.

Discuss any 5 attributes of continuous markets.

Discuss any 5 attributes of continuous markets.            

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?