This finance assignment solution addresses several key concepts in finance. The first answer explores different methods of raising capital, comparing common shares, preference shares, and debt financing, including their advantages and disadvantages for both organizations and investors. The second answer analyzes futures contracts, calculating potential gains and losses based on price fluctuations. The third answer delves into margin requirements and the impact of gearing in future contracts. The fourth answer explores the use of put options to mitigate risk and the components of option premiums, including intrinsic and time value. The fifth answer examines put options, outlining the profit and loss scenarios for both writers and buyers. The sixth and seventh answers focus on stock valuation, calculating average returns, standard deviation, and beta, and applying the Capital Asset Pricing Model (CAPM). The final answer covers capital budgeting techniques, including payback period, discounted payback period, Net Present Value (NPV), Profitability Index (PI), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR), illustrating how to evaluate investment projects.
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