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Desklib Micro and Mini Cases Analysis

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Added on  2020-09-15

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The article provides a detailed analysis of various Micro and Mini Cases available on Desklib. It covers solutions to different requirements and connects capital structure to question 5. The content includes subjects like finance, accounting, and business management, along with course codes and college/university names.

Desklib Micro and Mini Cases Analysis

   Added on 2020-09-15

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Final Assignment MICRO-CASES-E25,507Q49Requirement-A: In order to figure out how much fund left for next year for KB, following should be considered: Project X: ($32,555/$26,780) -1 = 21.56% IRR Project Y: ($30,873/$20,402) -1 = 51.32% IRRProject Z: ($57,135/$53,048) -1 = 7.70% IRRSince the average expected rate of return from the market is 20%, Project X and Project Y are the acceptable projects KB only owns 47%, and he wants to consume 49% thus loan is required. 49% of $78,450 = $38,440.5047% of $78,450 = $36,871.50 $1,569 of loan Therefore: $80,019 – $32,555 – $30,873 – $1,569 = $15022 Requirement-B $25,507 FV, 3N, 7.77 I/Y, PV = $20,417.96($8,880/0.077) FV, 5N, 7.7 I/Y, PV = $79,587.29 Present Value of KD’s Investment = $100,004.29Requirement-C -$33,459 PV, 6.2/12 = 0.5166 I/Y, 26 x 12 = 312, FV = $167,029.55 MICRO-CASES-KG1,142.20 Requirement-A $11,000,000/5,000,000 = $2.20 x 0.13 = 0.290.29 + 2.20 = 2.49 x 5,000,000 = $12,450,000Requirement-B N = 22-4 = 18 x 4 = 72 FV = $4,000$4,000 x 0.11 = 440/4 = 110 PMT15/4 = 3.75 PV = $3,008.65Requirement-CFV = $1,000
Desklib Micro and Mini Cases Analysis_1
Expected ReturnSMLTSR ER(m)-ZXN +Rf 4.8%RF -1.5 0 1 2 3 Beta Final Assignment PV = $1,142.20$48.5 = PMT20N Yield To Maturity = 7.641% Requirement-DP2 = D3 / (r-g) = $107.20Thereafter use of calculator and Current Price is $90.47 per shareRequirement-E Dividend Yield: 0.49/4.90 = 10% Capital Gain Yield: 4.90 – 6.00 = -$1.10 / 6 = -18.33% MINI-CASE-Q32.8T4.8Requirement-A draw an SML graph Requirement-BNo this prices have not been properly priced as in the real market beta mark of 3.0 and -1.5 are very unlikely and investors are vary of the fact that it is either too risky or has a really low income. In the real market will the beta to be somewhere around .5 to 1.5 or even 2 as not many investors are looking for high risk investments or even low return investment, Investors are most likely to for investments that
Desklib Micro and Mini Cases Analysis_2

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