Finance Answers

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

QUESTION # 2

1.    Discuss the commonly used procedures for ranking investment proposals. what are the advantages and disadvantages of these techniques? (Use examples where appropriate)

QUESTION # 1

1.    What constitutes inventory? Discuss the benefits of inventory management.

ii)Discuss new developments in inventory management systems and the implications for production technique any philosophy.

iii) What factors are likely to reduce the holdings of inventory in relation to sales in the future? What factors will tend to increase the ratios and what in your judgement is the net effects? 

Collect panel data on non-performing loans, bank branches and deposiWest African countries- Ghana, Nigeria, Burkina Faso, Togo and C2009 to 2018.  

  Use stata software to carry out the following:

1. First undertake diagnostic tests for multicollinearity, autocorrand test of normality (skewness and kurtosis). Explain your a2. Check whether a fixed effect or random effect model will be3. Interpret your results

NB: Results submitted should include raw data and do-file 

QUESTION # 1

1.    What constitutes inventory? Discuss the benefits of inventory management.

ii)Discuss new developments in inventory management systems and the implications for production technique any philosophy.

iii) What factors are likely to reduce the holdings of inventory in relation to sales in the future? What factors will tend to increase the ratios and what in your judgement is the net effects?

QUESTION # 2

2.    Discuss the commonly used procedures for ranking investment proposals. what are the advantages and disadvantages of these techniques? (Use examples where appropriate)

 data over the past six months.

Number of houses sold Monthly loan payments (in R1 000’s)

x y

160 3,7

250 5,6

800 7,5

450 11,3

120 18,9

50 28.4

The regression line equation is [1] y = 480,89x − 13,99. [2] y = −0,016x + 17,45. [3] y = 17,45x − 0,016. [4] y = −13,99x + 480,89. [5] none of the above

The equation for the present value of Bond 123 on 2021-06-17 is given by

107,55174 = da n z + 100 ( 1 + 0,135 /2−29 ).

The yearly coupon rate is [1] 6,75%. [2] 7,35%. [3] 14,70%. [4] 8,55%. [5] none of the above.