FN201: The Three Decisions of a Financial Manager - Annuity - Accounting and Finance Assignment Help

Assignment Task:

1. Explain the three decisions of a financial manager

2. Explain the concept of agency cost. How does it apply to the corporation in terms of stock options for the managers?

3. Read the Executive summary of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. What could be said to be the cause of the misconducts in the industry? (The report could be found here: 

4. You were promised a sum of $10, 000 which is to be given to you next year. You are aware that interest rate is 5% per annum. You were given the option of $7,000 today. Would you take $7,000 today or wait till next year for the $10,000? Explain your answer.

5. An investment promises to pay $5,000 in Year 1, $6,000 in Year 2 and $8,000 in Year 3. What is the maximum price you should be willing to pay for the investment if the return on investments in the market averages 7.5%? (Hint: Find the present value of all the cash flows).

6. An investor has made a loss on their investment due to the decline in share price of the financial sector because of the Royal Commission Report revelations and COVID-19. The initial stock portfolio was worth $10,000,000 as at March 31st 2018 and the decline has been estimated at 6% per annum over two years ending in March 2020. How much is the investment worth at the end of March 2020?

7. You bought 1,000 shares of CBA at $81.25 per share on the 20th of December 2019. As at today the 1st of April 2020, CBA shares are $63.67. However, you earned a dividend of $2.00 on the 19th of February 2020. What is your holding period return? (You do not need to consider the time value of money in your calculations).

8. Find the value of the unknown in the equations below:

6,500=75(1+0.065)n

425=50(1+r)6

9. What is an annuity? Explain the three types of annuity. What do you understand by perpetuity?

What is the difference, in basis points, of the RBA cash rate between the 4th of February 2020 and 19th March 2020? Usually, the RBA makes only one announcement each month on cash rates why was the second announcement made in March?

This Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at onlineassignmentbank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.