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Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company

This assignment focuses on content from Topics 3, 4 and 5 and consists of 6 questions on time value of money and bond valuation, as well as 3 tasks on risk and return analysis. The assignment has a 25% weighting in the overall mark for the unit and should not exceed 1,500 words (excluding the reference list). Students will be assigned an ASX listed company as the context for the assignment.

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Added on  2023-01-23

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This document provides answers to questions related to TVM and bond valuation, risk and return estimates, and risk and return analysis of a company in the finance field.

Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company

This assignment focuses on content from Topics 3, 4 and 5 and consists of 6 questions on time value of money and bond valuation, as well as 3 tasks on risk and return analysis. The assignment has a 25% weighting in the overall mark for the unit and should not exceed 1,500 words (excluding the reference list). Students will be assigned an ASX listed company as the context for the assignment.

   Added on 2023-01-23

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Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s note:
Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company_1
1FINANCE
Table of Contents
Answer to question 1: TVM and Bond valuation............................................................................2
Sub part (a):.................................................................................................................................2
Sub part (b):.................................................................................................................................2
Sub part (c):.................................................................................................................................3
Sub part (d):.................................................................................................................................3
Sub part (e):.................................................................................................................................4
Sub part (f):..................................................................................................................................4
Answer to question 2: Risk and return estimates.............................................................................5
Sub part (a):.................................................................................................................................5
Sub part (b):.................................................................................................................................5
Answer to question 3: Risk and return analysis of the company:....................................................6
Overview of the company:...........................................................................................................6
Financial Performance:................................................................................................................6
Risk and Return measures of the company:..............................................................................14
Conclusion and recommendation:.............................................................................................14
References and bibliography:........................................................................................................15
Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company_2
2FINANCE
Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company_3
3FINANCE
Answer to question 1: TVM and Bond valuation
Sub part (a):
Discounted value of the installment can be computed by discounting the quarterly
installments, which will be received from the sales contract in future. The payment will be
received at the end of every month, and by applying a 7% discount rate, the total discounted can
be computed as $1,215,222.
Sub part (b):
The annual growth rate in sales is taken as 6.60%. The growth will be achieved over the
next years annually; hence, the growth rate needs to be compounded with the current sales
volume to get the expected sales amount of the future years. In the given case study, the sales of
the fifth year have been computed by compounding the 6.60% growth rate with the current sales
of $5,731,100 and arrived at $7,889,037.
Finance: TVM and Bond Valuation, Risk and Return Estimates, Risk and Return Analysis of the Company_4

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