Finance Answers

Where m is the median disposable income in the Enfield transport area, £360 per month & the initial price of a train journey into central London is £6. They believe demand to be inelastic and want to change the price to £8.

  Given the figures above, calculate the total change in demand if they were to raise prices to £8 per journey

An asset with initial cost base of 6 million was bought 5 years ago.At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gain (loss) tax rate 40%,what is the net proceeds resulted from selling the asset?

Answer the below questions

a. What do you understand by Real GDP? What is the Real GDP Growth Rate of India and China in 2019? What is the estimated real GDP growth rate of India and China in 2020? What is the projected real GDP growth rate of India and China in 2021 and 2022?

b. What is the estimated 2022 GDP Loss (in percentage) in comparison to pre-covid levels (January 2020 forecast) in China and Other Emerging Economies in Asia other than

 China?

Question 1 (34 marks) 

A- Assume that a French corporation exports electronic equipment to USA in a transaction denominated in dollar. Is this transaction a foreign currency transaction? Is it a foreign transaction? Explain the difference between these two concepts and their application here.                 (5 marks)

B- The unrealized gains and losses from intercompany transactions involving plant assets might be eventually realized. Does it make any difference if these assets are depreciable or non-depreciable? Explain.          (5 marks)

You are required to:

1) Calculate the book value and market value cost of capital (WACC) for ABC plc. (35 marks)

2) Considering the proposed changes to ABC’s capital structure, recalculate the

organisation’s cost of capital to reflect these changes and comment on the CFO’s

forecasts. (35 marks)

3) Critically analyse whether you consider that organisations, by integrating a sensible level

of gearing into their capital structure, can decrease their WACC, ensuring the response integrates

relevant empirical research within this area of study. (30 marks)

Time to repay installment loan Mia Salto wishes to determine how long it will take

to repay a loan with initial proceeds of $14,000 where annual end-of-year install-

ment payments of $2,450 are required.

a. If Mia can borrow at a 12% annual rate of interest, how long will it take for her

to repay the loan fully?

b. How long will it take if she can borrow at a 9% annual rate?

c. How long will it take if she has to pay 15% annual interest?

d. Reviewing your answers in parts a, b, and c, describe the general relationship

between the interest rate and the amount of time it will take Mia to repay the

loan fully.

In the circular flow taxes and imports represent ________ the circular flow.  

Gender bias is one of the ills of our society and thus impacts our workplace too.

Most progressive businesses are moving towards gender neutral policies for talent

acquisition & talent management. Explain how are businesses doing it?

If business ethics is understood under the concept of universal values then most of the

conflict among ethical values, the laws of state and the codes of the corporate world

could be eliminated. Any individual, professional, corporation or small & medium

business can make one or more of these universal values the focal point of their

business; be it trust, integrity, fairness, compassion etc and the rest of the values will

follow. Identify which two universal values influence you OR your

organization/business and discuss how this influence & focus has led to ethical decision

making and a better reputation for you OR your organization (Write about any ONE -

yourself or your organization).