problem 1) What are the goals of financial management?
problem2) find out PV of the annuity of Rs. 500 received annually for four years when discounting factor is 10%.
problem3) Suraj Metals are expected to declare the dividend of Rs. 5 per share and growth rate in dividends is expected to grow @ 10% p.a. Price of one share is currently at Rs. 110 in market. What is the cost of equity capital to a company?
problem4) What are the assumptions of MM approach?
problem5) An investment would have the initial outlay of Rs 100,000. It is expected to generate cash inflows. Table shown below highlights the cash inflow for four years.
Cash inflow
Year Cash inflow
1 40000
2 50000
3 15000
4 30000
If risk free rate and risk premium is 10%:
a) Compute NPV using the risk free rate
b) Compute NPV using risk-adjusted discount rate
problem6) What are the features of optimum credit policy?