Finance Assignment: Debt, Yield, Investment Analysis & ANZ Performance

This assignment provides solutions to questions related to the principles of finance, covering topics such as debt amortization, yield changes, investment analysis, and stock performance. It includes calculations and interpretations related to loan repayment schedules, the impact of yield changes on bond prices, and the evaluation of stock returns. Furthermore, it analyzes ANZ's financial performance, highlighting key figures and strategic decisions. The assignment concludes with an investment scenario, calculating the future value of a fixed amount investment with regular contributions. Desklib offers a platform to access similar solved assignments and past papers for students.

Principle of finance.

Table of Contents
QUESTIONS...................................................................................................................................3
Q1................................................................................................................................................3
Q2................................................................................................................................................3
Q3................................................................................................................................................3
Q4................................................................................................................................................3
Q5................................................................................................................................................3
Q6................................................................................................................................................3

QUESTIONS
Q1.
A) Covered in the Excel
B) In case of 160 period of repayment the actual amount of principle will be $4815.42. The most
key info about the debt and that user will repay it is given by a debt amortisation plan. Usually, it
provides a complete list of the all the contributions that they will be expected to make during the
loan's lifespan. Every amount is split down as per the section of the amount that goes towards
principal and interest mostly on calendar. Usually, by completing each minimum repayments,
they will still be provided the outstanding loan amount due, so user will be willing to see if the
overall debt would go through over the process of paying it back.
Q2.
A) PV and Price function
Particular Values Comment
Pv function 999.2994
Yes company must use price model in the
following case
Price
function
-$
21.08
$989.00
$1,021
B) Change in Yield
Q2b Value Comment
PV
function 897.909
Price
function $45
1045
With the new values it has been determined that company
must use price function if yield value reduces.
Q3.
Interpretation: The above value shows that standard deviation is higher than mean and expected
return due to high fluctuation in return received on prices of stock at the beginning of each
month.

Q4.
Comment: Results of expected return and holding period return are different. Holding period
return is higher than expected return; this shows that shares are undervalued.
Q5.
In the end, ANZ delivered $1.545 million in H1 taxable operating profit and $1.413 million in
stock profits on an ongoing basis, reflecting a 60 percent decrease from the previous comparable
period. Like NAB, ANZ stated that its H1 earnings were stable, down just 3 percent to $5.106
million while removing validity scales costs, tax and a variety of significant notable products.
ANZ ‘H1 stock cost came in at 4.7 percent, down considerably from the previous comparable
period. This decision does not affect our financial circumstances and ANZ has not received any
questions about the amount of funds from APRA. The board identifies with the advice of the
supervisor that, considering the current economic uncertainties, deferring a judgment on the 2020
intermediate dividend is wise but that it will not has been reasonable to make a determination at
this time.'
Q6
Investment cost: $5000
Fixed Amount: $250
Time: 10 years
Rate: 6.3%
FV= PV (1+I) t
= 5000 (1+6.3) 10.
= $ 5702
Total amount = $ 5702 +$ 250
= $ 5952