Ask Question, Ask an Expert


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

Consider the following 1000 par value zero-coupon bondsbond

Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.70% The expected two-year interest rate three years from now should be __ ...

Currently the spot exchange rate is 150pound and the

Currently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The three-month interest rate is 8.0% per annum in the U.S. and 5.8% per annum in the U.K. Assume that you can borrow as ...

March inc recently paid a dividend of 580 per share the

March, Inc., recently paid a dividend of $5.80 per share. The dividend on March’s stock is expected to grow at a rate of 6% per year forever. Your required rate of return on March’s is 11.5%. How much would you be willin ...

An engineer is considering upgrading four production-lines

An engineer is considering upgrading four production-lines. She has determined that upgrading all four lines is economically justifiable and proposes to invest the $64,000 necessary to make these improvements. Her boss d ...

What is the required return for dentrix corporation the

What is the required return for Dentrix Corporation? The risk-free rate is 3.2%, the risk premium is 8.1, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's b ...

Alternatives a and b require investments of 10310 and 13400

Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. What is the rate of return for each alternative and for the incremental diffe ...

Dishwasherrsquos delights plows back 6850 of its earnings

Dishwasher’s Delights plows back 68.50% of its earnings to take on projects that earn the firm a rate of return of 13.50%. Dishwasher’s stockholders require a return of 12.00% on their common stock. Earnings per share ar ...

The president of fly-by-night airlines has asked you to

The president of Fly-by-Night Airlines has asked you to evaluate the proposed acquisition of a new jet. The jet's price is $40 million, and it is classified in the 10-year MACRS class. The purchase of the jet would requi ...

We are evaluating a project that costs 848000 has an

We are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 62,000 units per y ...

Roberta offers to sell certain land to emily for 10000 this

Roberta offers to sell certain land to Emily for $10,000. This offer is made by a letter, signed by Roberta and mailed on March 1, 1990. The letter also stated that the offer would be kept open until July 1, 1990. About ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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