Ques 1 what is the need of international financial

Assignment Help Financial Management
Reference no: EM13371545

Ques 1. What is the need of International Financial Management? List out the difference between domestic Finance & International Finance.

Ques 2. i) An investor has two options to choose from: a) $ 7000 after 1 year b)$ 10000 after 3years.Assuming the discount rate of 9% which alternative he should opt for?

ii) A person would need USD 5000, 6 years from now. How much should he deposit each year in his bank account, if yearly interest rate is 10 %?

Ques3. Zain corporation ltd is trying to decide on replacement decision of its current manually operated machine with a fully automatic version. The existing machine was purchased ten years ago. It has a book value of $ 140000 and remaining life of 10 years salvage value $40000. The machine has recently begun causing problems with breakdown and its costing the company $ 20000 per year in maintenance expenses. The company had been offered $ 100000 for the old machinery as a trade-in on the automatic model which has a deliver price of $ 220000. It is expected to have a ten year life & a salvage value of $ 20000. The new machine will require installation modifications costing $ 40000 to the existing facilities, but it is estimated to have cost savings in materials of $ 80000 per year. Maintenance costs are included in the purchase contract and are borne by machine manufacturer. The tax rate is 40 % .Find out the relevant cash flows

Ques 4. a) You have a choice of accepting either of two

731_What is the need of International Financial Management.png

Calculate the payback period and give your opinion that which project is better.

b) Why is the consideration of time important in financial decision making? How can time be adjusted?

Ques 5. Rico Ltd & Sico Ltd are in the same risk class & are identical in all respects except that the company Rico uses debt while company Sico does not use debt. The levered firm has USD 900000 debentures carrying 12 % rate of interest. Both the firms earn 20 % operating profit on their total assets of value USD 25 lacs. The company is in tax bracket of 35% & capitalization rate of 15% on all equity shares.

You are required to compute the value of both the firms using Net Income approach.

Reference no: EM13371545

Questions Cloud

Read carefully the case notes overleaf consider the : read carefully the case notes overleaf. consider the information shown in the appendix.determine how this information
Develop a web site that provides customer access to the : develop a web site that provides customer access to the northwind database. the customer should be able to
1 is concerned with the maximization of a firms earnings : 1. is concerned with the maximization of a firms earnings after taxes.a shareholder wealth maximizationb profit
Ques 1i what are the factors affecting the capital : ques 1.i what are the factors affecting the capital structure of the company?ii the company raised preference share
Ques 1 what is the need of international financial : ques 1. what is the need of international financial management? list out the difference between domestic finance amp
Survey with construction applicationsquestion 1layout of : survey with construction applicationsquestion 1layout of highway curvesa. is an approximation technique.b. should be
Looks at the effects of galerucella on purple loosestrife : looks at the effects of galerucella on purple loosestrife. you should formulate a hypothesis based on some of the
Questionderby ltd operates a chain of department stores in : questionderby ltd operates a chain of department stores in melbourne which uses a courier company for deliveries. the
Question 1let us assume there is a two-terminal box there : question 1.let us assume there is a two-terminal box. there are one resistor one capacitor and one inductor inside the

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the expected return on the market

What is the expected return on the market and What is the risk-free rate?

  What is the need of international financial management

What is the need of International Financial Management? List out the difference between domestic Finance & International Finance.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Mk robe-stones mk-r-s is a big manufacturing firm which was

mk robe-stones mk-r-s is a big manufacturing firm which was set up as a limited company 6 years ago in 2009 by a family

  Estimate the historical standard deviation

Estimate the historical standard deviation of google and compare the implied standard deviation with the historical standard deviation.

  You have recently won the unisa log tossing competition the

you have recently won the unisa log tossing competition. the prize of 200 is supposed to be used to buy a 50-year

  Plan to improve operations with an eye for reducing costs

It is time for you to finalize your findings for your boss. He is expecting your analysis of your division's operations and to produce a plan to improve operations with an eye for reducing costs.

  Ahat is a ventures present value does the past matter

a.what is a ventures present value? does the past matter? what is meant by the statement if you are not using

  Explain process for calculating beta and the inputs

As of early September 2010, Wal-Mart's (WMT) beta is 0.33 and Target Stores (TGT) beta is 1.02. Discuss the meaning of these two betas, analytically, by briefly setting forth the process for calculating beta and the inputs to the calculations wher..

  Compare the hedging alternatives for the myr

Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged. Do you think Yankee should hedge or remain unhedged? If Yankee should hedge, which hedge is most appropriate?

  Record entries and build the financial statements

Create a chart of T-Accounts and post each journal entry to the appropriate accounts.

  Explain what is the nominal interest rate

What is the nominal interest rate on a 7-year Treasury security? Round your answer to two decimal places.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd