Finance Answers

You decide to begin saving towards the purchase of a new laptop in 3 years. If you put RM 1,000 at the end of each of the next 3 years in a savings account paying 4 percent compounded annually, how much will you accumulate after 3 years? What would be the ending amount if the payments were made at the beginning of each year? 

Urgent Corporation had earnings per share of $4 last year, and it paid a $2 dividend.

Total retained earnings increased by $12 million during the year, and book value per

share at year-end were $40. Urgent Corporation has no preferred stock, and no new

common stock was issued during the year. If Argent’s year-end debt (which equals its

total liabilities) was $120 million, what was the company’s year-end debt/assets ratio?

Bond details for below date

Issue Date : 1st Oct 2000

Par: $1,200

Coupon interest:6% ( Semi annual payment)

Day Count Convention: Act/360

Bond sold on 2nd July 2002

Calculate Accrued Interest and Dirty price.

Bond details for below date

Issue Date : 15st July 2004

Par: $1,400

Coupon interest:5% ( Quarterly payment)

Day Count Convention: 30/360

Bond sold on 2nd May 2008

Calculate Accrued Interest and Dirty price..

 Co.A issued bonds on 1st Jan 2008 for 10 year maturity

Par : $1500

Coupon interest: 3% Annually

Day Count Convention :Act/365

Mr.X bought 20 bonds on 1st Feb 2008.

Then sold 10 bonds to Ms.Y on 16th Aug 2010 for $1300

Then sold 5 bonds to Mr.Z on 18th Feb 2016.

Calculate the Accrued Interest and Dirty price..

1. In response to the 2020 economic disruption, the Federal Reserve dropped the commercial bank reserve requirement to zero. Therefore

a.The discount rate increased

b.Asymmetric information increased

c.Money supply increased

d.Bank profitability definitely increased

By looking at stock’s P/E ratios we may be able

a.Identify government spending

b.Identify asset bubbles

c. Low-interest rates

d.None of the above

An example of Fiscal policy may include

a.A rising Fed Funds rate

b.Increasing money supply

c.Constructing a new highway

d.Raising the Reserve Requirement

Point of tangency between isoquant curve and isocost curve is _______ equilibrium

ITEMS

Rent for the month 1 200

Sala 4 050

Current account 4 500

Savin account 15 500

S endin on food er month 550

Education loan a ment er month 100

Car 37 800

Credit card balance 700

Car loan a ment er month 690

Household ossession 42 000

Dividend received 2 500

Stereo e ui ment 4 250

Fuel, toll and arkin ex enses er month 300

Contribution er month 100

Home com uter and rinter 5 750

Stock 12 200

Clothin 7 000

Personal ex enses and recreation er month 250

Car loan 5 500

Television 4 500

Utilities bill er month 400

Unit trust investment 2 000

Other ex enses er month 500

4. Table 1 shows the list of the items for Siti for the month of June 2020. Siti needs to save for her staycation next year. She plans to at least have a saving of RM2 250 per month.

a) Based on the above information, help Siti to construct her income statement for June

2020. (8 Marks)

b) Did she manage to achieve her goals? Justify your answer. (2 Marks)

1. Naema's salary for a month is RM7 526. She needs to contribute her salary for income tax.

a) Find her annual salary and compute her average tax rate for year 2019.

Income bracket Tax rates Income Tax owed Avera e tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 0/0

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks) b) Find the marginal tax rate if her salary increases to RM8,455.

Income bracket Tax rates Income Tax owed Mar inal tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 %

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks)

[Total: 10 Marks]

Rent for the month 1 200

Sala 4 050

Current account 4 500

Savin account 15 500

S endin on food er month 550

Education loan a ment er month 100

Car 37 800

Credit card balance 700

Car loan a ment er month 690

Household ossession 42 000

Dividend received 2 500

Stereo e ui ment 4 250

Fuel, toll and arkin ex enses er month 300

Contribution er month 100

Home com uter and rinter 5 750

Stock 12 200

Clothin 7 000

Personal ex enses and recreation er month 250

Car loan 5 500

Television 4 500

Utilities bill er month 400

Unit trust investment 2 000

Other ex enses er month 500

4. Table 1 shows the list of the items for Siti for the month of June 2020. Siti needs to save for her staycation next year. She plans to at least have a saving of RM2 250 per month.

a) Base…