代写FIN2101 BUSINESS FINANCE代写C/C++编程

日期：2024-04-05 11:21

FIN2101 BUSINESS FINANCE

CONTINUOUS ASSESSMENT 1

INDIVIDUAL ASSIGNMENT: 30 marks

Read the instructions in your course documents, in your student portal, Course Outline, CA outline and your portal carefully. You will be penalized with marks deduction if the instructions are not strictly followed.

Students are to upload their assignment by the due date through their student portal account. After the due date, students’ submissions will not be entertained.

Students should keep a copy of assignment submitted. The submitted report must show evidence that this is students’ own work.

Write your FULL Name AND your IC/Passport number as in the register on the answer script.

Please be reminded that plagiarism and collusion are serious offences, and all cases will be referred to the administration. Grades will be withheld until investigations are completed if the submission is suspected of plagiarism or collusion.

Deadline: Date specified on Canvas Learning Management Systems.

Penalty Marks for Late Submission of Assignment

Within 24 hours: 20% to be deducted from total marks

More than 24 hours: submission will be graded zero

CA Submission

CAs must be submitted in MS Word document online via student portal. Please read through instructions in your student portal and CA outline carefully before submitting.

If you have further queries, please read the FAQ. If, after reading the FAQ, you need assistance on submission, please contact the team directly via email to [email protected] or call 6248 9393 Option 4.

For non-submission issues please email [email protected]. Please email with your student portal accounts. Email from other addresses will not be entertained. If issues raised are covered, you will be directed to read through instructions in the CA outline and FAQ. Please take time to read thoroughly before raising issues.

Question 1

AI Corporation and EP Corporation are companies in the manufacturing industry. Assume that the companies do not need to pay taxes. We are provided with the relevant information of the two corporations in the table below.

Item	AI Corporation	EP Corporation
Sales	$1000000	$500000
Earnings before interest and tax	$500000	$200000
Total equity	$1000000	$1000000
Total liabilities	$2000000	$500000
Interest expense	$250000	$40000

Based on the information in the table, calculate and explain the following ratios. Show all necessary workings.

(i) Net profit margin   (2 marks)

(ii) Time interest earned   (2 marks)

(iii) Based on the information provided and your answers in part (i) and part (ii), explain which firm has better ability to meet its debt obligation? Justify your answer.   (4 marks)

Question 2

Your firm is considering an investment, raising $250,000 equity and with a $150,000 bank loan. Given your firm’s cost of equity is 5% and before-tax cost of debt is 8%. The investment is expected to generate a net operating profit after tax of $80,000. Your firm has a tax rate of 20%.

(a)        Calculate the Economic value added (EVA) for the investment?   (4 marks)

(b)       Should the firm acceptor reject the investment? Explain your reason(s).   (1 mark)

Question 3

You are told that “it is better for a firm to have negative networking capital” . Do you agree with the statement? Justify your answer.

Note: Use your own words; do not copy directly from any sources.

[Word limit: 200]

(5 marks)

Question 4

Your firm has a supplier offering the credit terms of 3/5 net 60 for a current invoice of $10,000.

(i)         Calculate the cost of discount in percentage (round your answer to 2 decimal places).   (2 marks)

(ii)        Given the bank’s lending rate is 15% per annum, should your company take up the cash discount? Explain your reason(s).   (2 marks)

Question 5

Your firm has forecasted its total funds requirements for the coming  year as shown in the table below:

Month	Total funds requirements
Jan	$4,000,000
Feb	$3,000,000
Mar	$3,500,000
Apr	$3,500,000
May	$3,500,000
Jun	$6,000,000
Jul	$3,500,000
Aug	$3,500,000
Sep	$3,500,000
Oct	$4,000,000
Nov	$5,000,000
Dec	$5,000,000

Given that short-term funds  cost  6%  annually  and that  long-term funds  cost  8% annually, calculate the total cost of each of the following strategies:

Note: Copy the  above table and  show all necessary workings. Zero marks will be awarded if there are no workings.

(a)        An aggressive funding strategy.                                                                       (3 marks)

(b)        A conservative funding strategy.                                                                     (2 marks)

(c)        Given the firm’s management is currently focusing on increasing returns, should the firm adopt the Aggressive financing strategy or Conservative financing  strategy? Discuss the risk(s) related with Aggressive strategy. Provide justification for your answer.   (3 marks)