Finance Answers

Ashwin wants to buy a Pure Risk Life Insurance cover of Rs 1.5 crore. He is confused whether he should buy a ULIP a Term Plan. Recommend the product best suited for his requirement. 

1-On June 1, 199X firm T bought 100 bonds with a nominal value of 1,000 ALL each, 10% annual interest and 12 months term.

2-On September 1.199X firm T bought 50 shares of corporation A with a nominal value of 2,000 ALL each.

3-On 30.December.199X firm T calculated and recorded the interest realized on the bonds for the period 1.June-30.December.199X.

4-On 31.199.199X1 corporation A declared dividends belonging to the shares owned by firm T for an amount of 4,000 ALL.

5-On February 10, corporation A paid dividends to firm T for the amount of 4,000 ALL.

6-On March 1, 30 bonds were sold at a market price of 900 ALL each.

Required: To reflect economic events in the form of effects +/- in the relevant accounts

1-On May 2, firm T, which sells machinery and equipment, received from a buyer a promising receipt with a term of 6 months, 8% interest and a principal value of 150,000 ALL.

2-After keeping the promissory note for a month, on June 2, firm T sold it to the bank with a discount rate of 12%.

3-On July 1, firm T sold a machine to buyer A. The buyer issued to firm T a promising receipt with a principal value of ALL 100,000, a term of 3 months and an interest rate of 6%.

4-On July 2, he sold a device to a client X on the condition of 2/10, n / 30 worth 40,000 ALL.

5-On August 2, client X was not able to pay the value of the device, so he agreed with firm T to pay the value of the device after 3 months. Client X issued to firm T a promising receipt with 5% interest

6-On October 1, buyer A shot to firm T the maturity value of the promissory note issued on July 1.

Required: To reflect economic events in the form of effects +/- in the relevant accounts

1-On May 2, 200X, company N, which traded machinery and equipment, received from a buyer a promising receipt with a term of 6 months, with an interest of 8% and a principal value of 150,000 ALL.

2-After keeping the promissory note for 6 months, on November 2, the firm collected its maturity value.

3-On July 1, firm N sold a machine on credit to buyer A, for a period of 3 months, worth ALL 100,000.

4-On July 2, firm N sold a device on credit to client X, for a period of 1 month, worth 40,000 ALL.

5-On August 2, client X was unable to pay the value of the device, so he agreed with firm N to pay the value of the device after 3 months. Client X issued to firm N a promising receipt with 7% interest.

6-On October 1, buyer A shot to firm N the value of the machine ё bought on July 1.

Required: To reflect economic events in the form of effects +/- in the relevant accounts

Firm K, which uses the method of continuous inventory, performed during June the following economic operations:

1-On June 1, he bought goods with immediate payment worth 18,000 ALL.

2-On June 4, he bought goods on credit with the condition 2/10, n / 30, with a value according to the purchase price of 40,000 ALL.

3-On June 5, goods worth 1200 ALL were returned to the supplier on June 4 because they had defects.

4-On June 10, goods were sold on credit with the condition of 2/10, n / 60 with a value of 50,000 ALL. The cost of goods sold was 45,000 ALL.

5-On June 12, the value of the purchased goods was paid on June 4 minus the value of the returned goods earning the purchase discount. Required: To reflect the economic events in the form of effects +/- in the respective accounts.

Contribution and limitations of Samuelson general equilibrium model

What is a budget?

the cost to purchase a new air conditioner is #14000. the cost to repair an existing air conditioner is $350. what percent is the cost of the repair compared to buying a new air conditioner?

1) Explain five methods a country can employ in international trade restrictions (10marks)

2) Discuss the advantages of export processing zone (EPZ) in international finance (10marks)

LT India Ltd has the following capital structure, which it considers optimal:

Debt  35% 

Equity shares 65%

 Total  100% 

Applicable tax rate for the company is 25%. Risk free rate of return is 6%, average equity

market investment has expected rate of return of 12%. The company’s beta is 1.10. Debt

will bear an interest rate of 9% p.a.

 a. component cost of debt and equity shares assuming that the company does not issue

any additional equity shares.   

b.Weighted Average Cost of Capital (WACC).