Financial Management : Assignment

Added on - 28 May 2020

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Running head: FINANCIAL MANAGEMENTFinancial ManagementName of the Student:Name of the University:Authors Note:
FINANCIAL MANAGEMENT1Table of ContentsQuestion 1:.................................................................................................................................3a) Calculating the amount that will be consumed by Jillian in 2018 if the capital market offersan interest rate of 8% per year:..................................................................................................3b) Calculating the actual share value of Ram Shack ltd with its future dividend:.....................4Question 2:.................................................................................................................................4a.i) Identifying whether target sum will be achieved:................................................................4a.ii) Calculating the monthly pension of Colin from 65 years to 85 years:...............................5b.i) Identifying the annual interest rate on loan:........................................................................5b.ii) Calculating the monthly repayment loan over the 20-year period of the loan:..................6b.iii) Calculating the monthly repayment conducted by the company over the period of 18-year term:...................................................................................................................................6b.iv) Identifying the number of years needed for loan repayment:............................................7b.v) Identifying the final repayment amount:............................................................................7Question 3:.................................................................................................................................7i) Identifying the Payback period when even cash flow is conducted each year:......................7ii) Identifying actual payback period of the project:..................................................................8iii) Drafting the sketch for NPV profiles in axes:......................................................................8iv) Identifying the internal rate of return for both the projects:.................................................8v) Identifying and calculating exact crossover point:................................................................9vi) Selecting the adequate project for investment:.....................................................................9Question 4:...............................................................................................................................10a) Calculating NPV of the project for Diana Deall Ltd:..........................................................10b) Identifying whether the company should purchase the technology with the help ofinvestment appraisal technique:...............................................................................................11
FINANCIAL MANAGEMENT2Reference and Bibliography:....................................................................................................12
FINANCIAL MANAGEMENT3Question 1:a) Calculating the amount that will be consumed by Jillian in 2018 if the capital marketoffers an interest rate of 8% per year:ParticularsValueJillian Black income10%Halcyon Ltd Net Income 2016-17800,000Halcyon Ltd Net Income 2017-18800,000*120%Halcyon Ltd Net Income 2017-18960,000ParticularsValueHalcyon Ltd Net Income 2017-18960,000.00Total dividend payment960,000.00 * 80%Total dividend payment768,000ParticularsValueDividend received by Jillian in 2016-17800,000.00 * 80% * 10%Dividend received by Jillian in 2016-1764,000.00Dividend received by Jillian in 2017-18768,000.00 * 10%Dividend received by Jillian in 2017-1876,800.00ParticularsValuePresent Value of expenses100,000.00Rate8%Time1 yearEarnings needed100,000*((1+8%)-1)Earnings needed92,592.59Divided earned76,800.00Amount Consumed in 201864,000.00-(92,592.59-76,800.00)Amount Consumed in 201848,207.41b) Calculating the actual share value of Ram Shack ltd with its future dividend:Return on investment13%ParticularsG-rateDividendDiscount rateDividend
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