logo

BAO5534 Business Finance Assignment: Sun Ltd

10 Pages1184 Words188 Views
   

VICTORIA UNIVERSITY

   

Busienss Finance (BAO5534)

   

Added on  2020-05-28

BAO5534 Business Finance Assignment: Sun Ltd

   

VICTORIA UNIVERSITY

   

Busienss Finance (BAO5534)

   Added on 2020-05-28

ShareRelated Documents
Running Head: FinanceFinance
BAO5534 Business Finance Assignment: Sun Ltd_1
Finance2Table of ContentsQuestion 1.............................................................................................................................................3Question 2.............................................................................................................................................3Question 3.............................................................................................................................................4Question 4.............................................................................................................................................4Question 5.............................................................................................................................................6Question 6.............................................................................................................................................6Question 7.............................................................................................................................................7Appendix:..............................................................................................................................................9References:..........................................................................................................................................10
BAO5534 Business Finance Assignment: Sun Ltd_2
Finance3Question 1Annual Expected Rate ofReturnSun Ltd13.20%Moon Ltd8.74%Market6.87%The annual expected rate of Return of Sun Ltd is much higher than the return of Moon Ltd and market as well. We calculated the annual return by calculating the monthly return and then taking the average of those returns and multiplying it by 12. The annual expected return of Sun Ltd is 13.20% and the annual return of Moon Ltd is 8.74% and the annual expected rate of return of market is 6.87% the detailed calculation is in appendix.(Refer appendix 1)Question 2Beta of two companiesSun LtdMoon Ltd0.600.54The beta of Sun Ltd is higher than the beta of Moon Ltd as Sun Ltd beta is 0.60 and Moon Ltd beta is 0.54. Beta is calculated by taking the slope of the returns of every month that to onY axis we did taken the companies return and on X axis market. As the beta of Sun Ltd is more than the beta of Moon Ltd. Sun Ltd is more risky than Moon Ltd. The calculations are there in the appendix.(Refer appendix 1)
BAO5534 Business Finance Assignment: Sun Ltd_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Management Assignment | Risk and Capital Budgeting
|9
|1790
|422

Valuation of shares of JB Hi Fi Ltd
|11
|1896
|188

Finance
|7
|1079
|318

Financial Management - Assignment Sample
|12
|1340
|159