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Michael is updating his estate plan for himself and his family. He would like to provide an income of $ 3000 every month starting 101 2 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $ 10,000 and he knows his life insurance, maturing in five years, will have a cash value of $ 150,000. To make up the difference , Michael has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly ?

2. Mahesh wants to start his business and for that he decides that he will take loan for

Rupees 7 Lakhs from the Bank of Baroda. He also decides to use his saving worth 3 lakhs

in the bank account to start the business. Discuss how these two transactions will be

recorded in the books of accounts by passing the relevant journal entries? How these

transactions will be reflected in the Books of accounts (that’ is in the financial statements)?

Lastly, conclude your answer by stating the applicability of which accounting

assumption/s you did the above mentioned accounting treatment/ recognition and

presentation in the books of accounts.

"Please give me full long answer by today Itself"


Mehnaz, Inc., just constructed a manufacturing plant in Dhaka, Bangladesh. The construction cost

is Tk. 1,000,000. Mehnaz intends to operate the plant for three years. During the three years of

operation, cash flows are expected to be 400,000 Tk., 400,000 Tk., and 400,000 Tk., respectively.

Operating cash flows will begin one year from today and all cash flows are remitted back to the parent

at the end of each year as the government of BD will allow to remit fund during the term of project.

Withholding tax imposed by BD government is 15% on remitted amount. At the end of the third year,

Mehnaz expects to sell the plant for 300,000 Tk. Mehnaz has a required rate of return of 15 percent.

It currently takes 90 Tk. to buy 1 U.S. dollar, and the Tk. is expected to depreciate by 5 Tk. at the end

of first year.


How much could the Johnsons borrow today if they were willing to have a $1,800 monthly mortgage payment? (Assume that the interest rate and the length of the loan remain the same.)


A company needed ghc 1000 to finance its activities. The firm can financed this expenditure either by bonds or equity. Interest rate on bonds is 10%. The company can earn ghc 160 in good years and ghc80 in bad years. Assuming the firm faces equal probability of good and bad years;

i What will be the stream of returns on both bonds and equity if the company chooses the following financing options

a 100% equity financing b 50% equity financing c 20% equity financing d 0% equity financing

ii Estimate the equity risk associated with each option in (i)

iii As an investor who wants to purchase a share in the company, which financing option will make you purchase the stock. Why????

  

 


Take Britannia Industries Ltd as a case. In the context of its financial statements and


annual report answer the following


a. It’s a largely acceptable practice among the corporate entities to pay dividend to its


shareholders. Take Britannia Industries Ltd as a case. Discuss and differentiate the


types of dividend the company paid for the financial year 2020-2021. Also, mention


your understanding about what could be the accounting treatment of Dividend in the


books of Britannia Industries Ltd. (5 Marks)


b. Discuss and share your understanding on any three profitability ratios which you feel


relevant to assess the profitability of the company.


"LONG ANSWER"

"Please send me the answer of this question by tomorrow morning . I do not want to pay 3000 for this question. I want 1000 words answer."


Take Britannia Industries Ltd as a case. In the context of its financial statements and

annual report answer the following

a. It’s a largely acceptable practice among the corporate entities to pay dividend to its

shareholders. Take Britannia Industries Ltd as a case. Discuss and differentiate the

types of dividend the company paid for the financial year 2020-2021. Also, mention

your understanding about what could be the accounting treatment of Dividend in the

books of Britannia Industries Ltd. (5 Marks)

b. Discuss and share your understanding on any three profitability ratios which you feel

relevant to assess the profitability of the company.

"LONG ANSWER"


Question 2 Upon their retirement in a meeting with their advisor, mr and mrs Moraba determined the amount that they will need in order to live comfortably. They expect a 20-year retirement period. How much should mr and mrs Moraba deposit now in a bank account paying 7,5% interest per year, compounded yearly to be able to withdraw the amount of R480700 at the end of each year, starting one year from now?
Question 1 Joshua graduated from college and began working in the family restaurant business. At the end of the third month of the first year he began putting R7440,00 per quarter in an individual retirement account and contributed to it for a total of ten years. The account earned interest at 11% per annum, compounded quarterly. The amount that was available to him after the ten years is

Lillie is saving up for a trip she is taking with friends during her break from school. If Lillie’s current monthly net pay is $560.00 and her monthly expenses are $347.49, what percent of her net pay is left for savings?


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