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1. The Library Publishing house want to know the ISBN check digit of Math Power
book with the ISBN: 978-971-0499-31-?
2.Jay's restaurant wants to know if the credit card use by the customer is valid.the credit card number is 4000 0012 3456 7899
Anika’s savings account has stated interest rate of 2.5%. After inflation, the real return on her savings account is 1%. What is the normal interest rate on the account?
b) An investor anticipates Newco’s Security will reach $30 by the end of year. Newco’s beta is 1.3. Assume the return on the market is expected to be 16% and risk free rate is 4%. Calculate the expected return of Newco’s share in one year and determine whether the share is undervalued, overvalued or properly valued with a current value of $25.
c) Differentiate between non-diversifiable risk and liquidity risk.
d) As a trustee of a bond holders, provide two covenants you will insist to be stated in the bond contract. Give reasons for your answer.
a)Bob ltd has issued a 6year bond which was purchased by exim bank. This bond has a par value of $80,000 paying a coupon rate of 20% every two months with a yield to maturity of 17.09%. what price will exim bank pay.
b)a firm is considering to buy a machine at $80000. this machine is expected to generate net cash inflow of $28000 each year for six years, after which is expected to be sold at $5oooo.the firm expects to earn at least 14.05% per annum.
5. use NPV and internal rate of return criteria to advise the company on whether the machine should be acquired or rejected.

Kate is applying to USA home loans for a mortgage of $200,000. The company is quoting 10.07% interest per annum. Kate would like to have a 25year amortization period and wants to make a monthly payment.

Required:

What will Kate’s payments be per month?

c) Exim Financial Services granted a loan of $22,000 to its client at 22% compound annual interest to be repaid over the next six (6)years. As a financial adviser to the client you are required to compute the size of the yearly payments.

d) A project costs $910,000 today and offers one million fifty thousand dollars cash flow in 72 months. It has a beta of 95 out of 100 and the risk premium on the market is 7.3%. if the treasury bill rate is 9%, should the project be accepted? Give reason.


9. The last dividend paid by Paris Securities, Ltd. just paid a dividend of $2.15. The company projects supernormal growth of 16% annually for the next two years. After that growth is expected to slow down to a normal 4% annual growth rate which will go on indefinitely. The dividends will grow accordingly. If the required annual rate of return is 11%, how much would you pay for a share of Paris Securities today?
Recently, More Money 4U offered an annuity that pays 6.3% compounded monthly. If $1,848 is deposited into this annuity every​ month, how much is in the account after ​years? How much of this is​ interest?
The actual sales figures of 2018: November N$80 000, December N$90 000, budgeted figures for 2019 are : January N$75 000,February N$75 000, March N$80 000, debtors are: 60% within the month of sale, 25% within the first month after sale, 15% within the second month after sale, actual purchases figures for 2018: November N$50 000,December N$60 000, Purchases for 2019: January N$55 000, February N$45 000, March N$55 000, All purchases are on credit and experience shows that 90% are settled in the month of purchase and the balance settled during the following month. Overheads of N$20 000 per month (including N$5 000 depreciation) are settled monthly. Taxation of N$8 000 has to be paid in February and the company will receive settlement of an insurance claim of N$25 000 in March. The company estimates that it will have a favourable bank balance of N$81 250 on 31 March 2019.Required: Prepare a Cash Budget for the months January, February, and March 2019 in column format.
Assume that your father is now 50 years old and plans to retire after 10 years from now. He is expected to live for another 25 years after retirement. He wants a fixed retirement income of Rs. 5,00,000 per annum. His retirement income will begin the day he retires, 10 years from today, and then he will get 24 additional payments annually. Your father has current savings of Rs. 10,00,000 and he expects to earn a return on his savings @ 10% p.a., annually compounding. How much (to the nearest of must your mther save durhlg each of next 10 years to meet his retirenent goal?
Hafiz wanted to buy a brand-new car. He could only afford to pay RM 5000 for a down payment and decided to take a loan to finance the balance of the 139770
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