Categories
Finance

Please read the given case carefully.

Finance Course Case Questions.
Total of 2 questions, not lengthly,around 1000 words.
Please read the given case carefully.

Categories
Finance

Without plagiarism and without resemblance to anyone

Please correct and not duplicate solution, I do not want similarity with anyone Please put a reference ; put answer in the same file Use simple and easy words to solve
Without plagiarism and without resemblance to anyone
perfect solution ,

Categories
Finance

Following approval by starwin products limited’s (“spl” or the “company”) shareholders at their annual general meeting on 19 june 2013, the company embarked on a renounceable rights issue (“offer”) of 333,359,264 ordinary shares of no par value at ghs 0.03 per share to interested shareholders.

STARWIN PRODUCTS LIMITED RENOUNCEABLE RIGHTS ISSUE
Following approval by Starwin Products Limited’s (“SPL” or the “Company”) shareholders at their Annual General Meeting on 19 June 2013, the Company embarked on a Renounceable Rights Issue (“Offer”) of 333,359,264 ordinary shares of no par value at GHS 0.03 per share to interested shareholders.
The Securities and Exchange Commission (“SEC”) and the Ghana Stock Exchange (“GSE”) approved SPL’s Offer Circular on 29 August 2014 and on 4 September 2014, respectively. IC Securities (Ghana) Limited (“IC Securities”) is the Financial Advisor and Sponsoring Broker for the Offer.
On 17 November 2014, a shareholder of the Company (“Applicant”) filed a motion to restrain Starwin Products Limited and IC Securities from proceeding with the issuance of additional shares described as a Renounceable Rights Issue. On 8 December 2014, the Accra High Court before Justice Samuel K.A. Asiedu, Justice of the High Court, dismissed the motion on the basis of no merit in the evidence provided by the Applicant.
The Offer period closed, and all shareholders who took part in the Offer received their subscriptions on 17 December 2014.
a) How much was SPL hoping to raise?
b) Before the rights issue, SPL had issued 259,647,284 shares which were trading at GHS 0.04 per share. If all existing shareholders exercised their rights, what was the value of SPL at the end of the rights issue (all things equal)?
c) SPL is registered in Ghana. How many rights must have been issued?
d) Each right entitled the holder to buy how many new shares?

Categories
Finance

Students must mention question number clearly in their answer.

The Assignment must be submitted only in WORD format via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Categories
Finance

Assignments submitted through email will not be accepted.

((Avoid plagiarism;)) the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
The Assignment must be submitted only in WORD format via the allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
Students must mention question numbers clearly in their answers.
Late submitted assignments will NOT be entertained.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Categories
Finance

The answers should be correct, clear, and comprehensive

Avoid plagiarism, the answer
should be in your own words.
If you take information from
other resources, you should put references by APA
style
The answers should be correct, clear, and comprehensive

Categories
Finance

The three-week partial lockdown has affected the going concern of his business.

2. An investor is considering starting a new business whilst working with a local government as an Accountant. The company would require GHS 500,000 of assets, and it would be financed entirely with common stock. The investor will go forward only if he thinks the firm can provide a 15.0 percent return on the invested capital, which means that the firm must have an ROE of 15.0 percent. After operating the business for 5 years, he realized the importance of debt and tax deductibility that comes with it. He then decided to alter the capital structure whilst expanding the size of the business. His total assets came to GHS 647m financed as follows:
Market value of Debt= GHS 194m with 11%
The market value of Equity= GHS 453m with the expected return of 17%
Just as he was about to obtain an additional loan in 2020, Covid-19 and its containment measures (such as social distancing, staying at home etc) affected his business which operated more with human interaction. The three-week partial lockdown has affected the going concern of his business. The government has set up the Coronavirus Alleviation Programme (CAP) with seed money of GHS 1 billion. An amount of GHS 600 million of this money is to be disbursed to vulnerable firms and GHS 400m to vulnerable households. The government also announced free water for three months (April to June 2020) to all citizens consistent with the health protocols of washing hands as often as possible under running water though one-third of the African population cannot wash their hands simply because of lack of running water. For the three months, electricity has been zero-rated for lifeline consumers (from 0-50 kilowatt-hours a month consumption) whilst all other categories of consumers enjoy a 50% subsidy. Given the enhanced exposure of frontline workers as a result of the pandemic, the government also offered tax exemptions amounting to 50% of their basic salary for the three months translating to fiscal loses of GHS 288.6m including additional allowances for frontline health personnel covering March, April, May, and June for the year 2020 (amounting to GHS 51 million). But the Accountant has complained for his exclusion from the list of beneficiaries. Bank of Ghana (BoG) also responded by reducing the policy rate by 150 basis points as well as reducing the Primary Reserve Requirement from 10% to 8%. His bank loan is indexed to the primary reserve requirement and varies accordingly. Given the above and your own understanding of recent development with respect to Covid-19: Attempt the following questions (you are free to make reasonable assumptions)
A) How much net income must be expected to warrant starting the business? (3 Marks)
B) Estimate the Weighted Average Cost of Capital (WACC) of the business before and after the Bank of Ghana’s Covid-19 intervention and interpret your results. Assume a tax rate of 25% (10 Marks)
C) Ascertain the minimum profit the business must make in order to satisfy providers of capital before and after BoG’s Covid-19 intervention.
i. (5 Marks)
D) Using your understanding of risk and returns, is the complaint of his exclusion from the tax rebate justified (3 Marks)
E) Discuss how the government’s Covid-19 fiscal stimulus would benefit his business and how he can take advantage of them. (8 Marks)

Categories
Finance

Q3.

Watch the short video in the following link:
2.3 Test your Knowledge (Question):
Describe the different types of financial derivative?
Describe the advantages and disadvantages of the use of derivatives?

your answer needs not to exceed 100 words
———————————–
Watch the short video in the following link:
3.3 Test your Knowledge (Question):
Q. Discuss the factors that affect an option’s price?your answer needs not to exceed 100 words
——————————
Watch the short video in the following link:
https://lms.seu.edu.sa/bbcswebdav/courses/FIN-405-…
4.3 Test your Knowledge (Question):
Q. Consider a stock currently (S0) priced at SAR 80. One period later it can go up(u) by 25% or go down(d) by 20%. The risk-free rate is 7 percent. Calculate the current/theoretical value of the European call option if the exercise/strike price is SAR 80?
your answer needs not to exceed 100 words.
———————————————
Watch the short video in the following link:
5.3Test your Knowledge (Question):
Q. Explain the key option Greeks?
your answer needs not to exceed 100 words.
———————————–
Q-1ِExplain the financial derivatives? Discuss the different types of financial derivatives along with their features.(3 Marks)
Q-2. Discuss the major functions or roles of derivative markets in an economy?
(2 Marks)
Q3. The following call option prices were observed for a stock on July 6 of a particular year.(5 Marks)
Strike Price
Call

July
August

155
11.00
11.80

160
6.50
8.00

165
2.80
5.50

170
0.90
3.50

The stock is priced at 165.5(S0) and ignore dividends on the stock. The expirations are July 17 and August 21.
Compute the intrinsic values and time values of the following calls. Treat these calls as American options for purposes of determining the intrinsic value and time values.
July 155
July 160
July 170
August 160
August 170
——————————–
https://www.investopedia.com/terms/i/interestrater…
Q: what is interest rate risk? How does it affect fixed-income securities?
——————————
Q1: Explain the importance of Glass-Steagall Act in the U.S. Banking Industry.Provide the summary of two past events where Glass-Steagall Act was used.

Q2A: What are the main steps to be followed by the organizer of a new bank especially in the U.S. Financial Market?
Q2B: What Factors are often taken into consideration while evaluating the sites for the new branch office of the bank.
Q3: Albilad Bank decides to install 2 ATMs near to its one of the full services branches in Dammam. Each ATM costs 35000 SAR to the bank. ATM Installation cost is 16000 SAR for each machine. Each ATM has a projected life of 10 years. Both ATMs are expected to handle 50,000 cash transaction collectively and, on an average, bank can save 0.40 SAR on each transection in teller expenses. If Albilad bank has a 12% cost of capital, should the bank go ahead with this Investment in 2 ATMs.
Note: If using Excel, Students must provide the table of calculations.

Categories
Finance

No exceptions.

(((Avoid plagiarism;))) the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
The Assignment must be submitted only in WORD format via the allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
Students must mention question numbers clearly in their answers.
Late submitted assignments will NOT be entertained
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Categories
Finance

Students must use proper references to justify their assignment work.

Students must use proper references to justify their assignment work.
The Assignment questions are as follows: