by Dan | Jan 14, 2023 | finance
You are interested in buying a small day clinic in Frankfurt. You get the following financial forecasts (in mio €): t = 0 1 2 3, 4, 5, … Current Assets 300,00 315,00 330,75 330,75 Fixed Assets 750,00 787,50 826,88 826,88 Total Assets 1050,00 1102,50 1157,63...
by Dan | Jan 14, 2023 | finance
You have to decide about an investment proposal for a new appliance. The initial investment is 250,000 €, due Jan. 1, 2023. You want to sell the appliance after three years. The estimated salvage value at the end of 2025 is assumed to be 25,000 €. Your firm...
by Dan | Jan 10, 2023 | finance
Complete the following table for the expected rate of return on equity for different rates of profit (p) on combined debt and equity and levels of primary gearing assuming that the rate of interest on debt is 10%. (Show your workings in full) Debt/Equity Ratio...
by Dan | Jan 10, 2023 | finance
You are an equity analyst working for an investment bank. You are analysing Company ABC shares. The last year dividend (Do) was 30 pence. You are predicting 12% dividend growth for the next 2 years and 8 % for the following 2 years, and thereafter dividend...
by Dan | Jan 10, 2023 | finance
Assume that the following data represent all risky securities in the economy. Correlation Coefficient Matrix Security Value Standard deviation A B C D A £20 5.0% 1.0 0 0 0 B £20 10.0% 0 1.0 0 0 C £30 20.0% 0 0 1.0 0 D £30 30.0% 0 0 0 1.0 Total £100 i....
by Dan | Jan 10, 2023 | finance
You have following investments in securities A, B and C. Security Amount Invested Beta Expected one year return A £10,000 1.15 14% B £10,000 1.90 20% C £5,000 1.72 18% The current risk-free rate of interest is 4% and you have heard that analysts are expecting a...
