Category corporate finance planning assignment help

Portfolio Management – What are the mean returns and risk of a portfolio if the investment manager invests

Consider the following information about three assets:
Stock                                 Mean Return                                 Standard Deviation
Moose                                   10.00%                                               5.20%
Gnu                                        8.00%                                                 2.70%
Wildebeest                           12.00%                                               6.50%
a) What are the mean returns and risk of a portfolio if the investment manager invests in:
i. 25% in Moose and 75% in Gnu if the correlation between Moose & Gnu is 0.2?
ii...

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Dividend Discount Model – Share Price Risk – Technical Analysis

Dividend Discount Model (DDM)
(a) Company A pays an annual dividend of 35p per share. The required rate of return is 11% p.a.

(i) If that level of dividend payment is expected to be constant into the future what is the intrinsic value (or fair price) of the share?
(ii) If the next dividend payment is expected to be 7% higher than the last, and if this rate of dividend growth is expected to be maintained over time, what is the intrinsic value of the share?

(b) Company B is a new company that is currently enjoying rapid growth. It is estimated that dividends will grow at an annual rate of 12% over the next four years. After that, the growth rate will fall to 6% p.a. and remain at that rate. The directors have just paid an annual dividend of £1.25.
Calculate the intrinsic value of the share ...

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Principles of Financial Investments – Maple Plc has never paid a dividend, however it has just announced that it will pay an annual dividend

Question 1

Maple Plc has never paid a dividend, however it has just announced that it will pay an annual dividend of 5p next year, 8p the year after and 10p the year after that. From then on the firm expects dividends to grow at 4% per year.

Earnings per share next year will be 8p. The firm has 10 million shares currently in issue and beta of the firm’s shares is 1.5. The current riskless rate in the economy is 3% and the expected return on the stock market is 10%.

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a) Calculate the expected return (i.e. cost of capital) for equity holders in Maple Plc.
b) What will the plow back ratio of the firm be next year?
c) Calculate the current share price of the firm.
d) If an investor had bought the share for £1...

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Introduction to Personal Finance – What are the factors individuals need to consider when budgeting

1. Describe the different types of pensions arrangements individuals could contribute to for saving towards their retirement. Explain the pro’s and con’s of arrangement and the purpose of each for individuals.
2. Describe the different types of mortgages an individual can take and what types of products and features individuals need to be aware of?

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3. John age 35, has recently inherited a lump sum from his late grandfather of £50,000. He is considering investing this for his future. Discuss what his investment options are and explain their advantages and disadvantages.
4. Savings are increasingly becoming a concern for many households in the UK, an issue the UK Government have highlighted...

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