Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

problem 1: The key goals of total economic policy are conventionally defined as the growth, equity and stability. It has long been understood that these three goals are complementary over the long-term. Economic growth gives the resources required for poverty reduction, however can't be sustainable if it is not accompanied by sufficient stability and equitable policies. Unstable economic and financial circumstances are inimical to growth, and usually hurt the poor most. However stability in a context of persistent economic stagnation and poverty is hardly a desirable outcome. In short-term, though, these goals might be mutually conflicting, and a sound resolution is required (and therefore a robust institutional mechanism) that takes all three into consideration in a coherent policy package.
 
Required: Describe in details the three main objectives of Public Expenditure Management.

problem 2: An Organisation has Equity Share Capital of Rs 500, 000 (face value Rs100 per share). To meet the expenditure of an expansion Programme, the company wishes to raise Rs300, 000 and is having the given four alternatives to raise the funds:

Plan A: To have full money from equity shares.
Plan B: To have Rs100, 000  from equity and Rs 200, 000 from borrowing from the Financial Institution @ 10% p.a.
Plan C: To have full money from borrowing @ 10% p.a.
Plan D: To invest Rs100, 000 in equity and Rs 200, 000 from preference shares at 8% p.a.
 
The Organisation earnings before interest and tax  are Rs 150, 000 and the corporate tax is 50%.
 
Required: As a financial controller, recommend which plan you would propose the Organisation to adopt?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M96360

Have any Question? 


Related Questions in Financial Management

Sue reynolds is considering investing in a retail store sue

Sue Reynolds is considering investing in a retail store. Sue estimates that the probability of a successful store will be 0.6. A successful store will give a return of $100,000. If Sue invests in the store but it is unsu ...

Financial problemyou have employer-sponsored retirement

Financial Problem: You have employer-sponsored retirement plan. Assume, your age is 35 and you plan to retire at 65. You can contribute $3,600 per year to this plan. Your employer will match this amount. If you can earn ...

The heyman companyrsquos bonds have 4 years remaining to

The Heyman Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a $1,000 par value; and the coupon interest rate is 9 percent. a. What is the yield to maturity at a current market ...

What is the yield to maturity on a treasury strips with 11

What is the yield to maturity on a Treasury STRIPS with 11 years to maturity and a quoted price of 63.695? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" ...

Taskyou are required to complete all questions and submit

Task You are required to complete all questions and submit all necessary workings. Follow the assignment requirements (refer to the Requirements section with assignment 1) above very closely. Question 1 1.1 Using the Int ...

Derive the probability distribution of the one-year hpr on

Derive the probability distribution of the one-year HPR on a 30-year U.S. Treasury bond with an 8% coupon if it is currently selling at par and the rob ability distribution of its yield to maturity a year from now is as ...

Plunkett gym equipment inc has a 1000 par value convertible

Plunkett gym equipment inc. has a $1,000 par value convertible bond outstanding that can be converted in 45 shares of common stock. The common stock is currently selling for $27.60 per share and the convertible bond is s ...

In 2010 there were several proposals to regulate the use of

In 2010, there were several proposals to regulate the use of credit default swaps (CDS) by speculators. An opinion column by Darrell Duffie of Stanford in the Wall Street Journal argued that: Speculators also provide us ...

An asset used in a three-year project falls in the

An asset used in a three-year project falls in the three-year MACRS class for tax purposes. The MACRS percentage rates starting with Year 1 are: 33.33, 44.45, 14.81, and 7.41.The asset has an acquisition cost of $2.6 mil ...

The sisyphean company has a bond outstanding with a face

The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7?% and that the coupon payments a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen