Business Finance Assignment - (Solved)
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Added on 2020-05-16
Business Finance Assignment - (Solved)
Added on 2020-05-16
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Running head: BUSINESS FINANCEBusiness FinanceName of the Student:Name of the University:Authors Note:
BUSINESS FINANCE1Table of Contents1.1 Depicting the monthly payment:..........................................................................................31.2 Depicting how much is the first payment interest:...............................................................31.3 Depicting how much is the first payment is principal:........................................................31.4 Depicting how much money is owed by corporation after making monthly payments:.....31.5 Depicting should the loan be refinanced after three years:..................................................41.6 Depicting how much is the loan payment if these payments are scheduled for quarterlyrather than monthly payments:...................................................................................................41.7 Depicting how much will Casino.com Corporation owe on this loan after makingquarterly payments for three years:............................................................................................51.8 Depicting the annual percentage rate on the original ten-year 8 % loan:............................51.9 Depicting the effective annual rate (EAR) on the original ten-year 8 % loan:.....................52.a Depicting the market rate of return for the bond:.................................................................52.b Depicting the market rate of return for the bond if you hold for 1 year and submit it:.......62.c Depicting the return for the year:.........................................................................................63. Depicting the rate of return will be earned on that investment:.............................................74. Classifying each event as a source of systematic and unsystematic risk:..............................75.a Calculating payback period of the investment:....................................................................85.b Calculating NPV of the proposed investment:.....................................................................85.c Calculating IRR of the proposed investment:......................................................................85.d Recommending relevant implementation of the proposed project:.....................................96.a Ranking investment based on NPVs:...................................................................................96.b Ranking investment based on IRR:......................................................................................96.c Depicting why the result yield mixed result:......................................................................107 Calculating NPV for each project:........................................................................................10
BUSINESS FINANCE28.a Calculating payback period for the investment:.................................................................118.b Depicting whether the company will accept the project of payback period is 3 years and 4years:........................................................................................................................................118.c Selecting which investment is selected if shortest payback period is identified:...............128.d Depicting which projects will be accepted:.......................................................................128.e Depicting the investment which will be selected if company uses payback period:.........128.f Depicting the project will be accepted:...............................................................................129. Explaining the information the following ratios provides about a firm:..............................1210.a Calculating required rate of return for each of the above stocks:....................................1410.b Calculating the required rate of return for the above portfolio:.......................................1410.c Calculating beta of the portfolio and weighted average beta and the CAPM formula:...1510.d Calculating the required rate of return for the new portfolio using the above method:...1510.e Describing the above change in investor’s portfolio reflects about the new risk attitude:..................................................................................................................................................15Reference and Bibliography:....................................................................................................17
BUSINESS FINANCE31.1 Depicting the monthly payment:ParticularsValueLoan amount $ 20,000,000 Tenure120Interest rate0.67%Monthly payment $ 242,655 1.2 Depicting how much is the first payment interest:ParticularsValueLoan amount $ 20,000,000 Interest rate0.67%First payment is interest $ 133,333 1.3 Depicting how much is the first payment is principal:ParticularsValueMonthly payment $ 242,655 First payment is interest $ 133,333 First payment is principal $ 109,322 1.4 Depicting how much money is owed by corporation after making monthlypayments:ParticularsValueInstalments $ 242,655 Interest rate0.67%Time84Total loan amount owed$ 15,568,577.62 1.5 Depicting should the loan be refinanced after three years:ParticularsValueLoan amount $15,568,578 Tenure84Interest rate0.58%Refinance cost $250,000 Instalments $242,655 Monthly loan payments $234,972 Difference $7,684 Time 84
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