MANG6239W1 BEHAVIOURAL FINANCE 行为金融代写 This paper contains SIX questions. Answer FIVE questions in total. You must answer ALL questions from SECTION A, and ONE question from SEC...View details
BX2014 Principles of Finance
Online Mid-term Test
金融原理考试代写 Instructions: (1) All questions are compulsory in this examination. (2) Total 3 questions. Time allowed: 2-hour. 10.00am to 12.00pm.
(1) All questions are compulsory in this examination.
(2) Total 3 questions. Time allowed: 2-hour. 10.00am to 12.00pm.
(3) Write your Name and Student Id clearly on the header of your answer script, and put the page number (example, page 1 of 3, page 2 of 3 and page 3 of 3) at the footer.
(4) Write your answers and workings in MS word document or a piece of paper and scan it into pdf file.
(5) Upload your final answer script file to Dropbox on Learn JCU before time-up.
(6) This is an online mid-term exam.
Question 1 (8 Marks) 金融原理考试代写
After graduating from JCU, David has been working in a local company as a finance manager for 2 years. He is currently earning $4,000 per month. Over the last 2 years, he has successfully saved $20,000 in his bank account. However, David is considering to invest his savings to fund for his children’s education expenses. He feels that based on the increasing cost of education in Singapore, he will need $200,000 in 6 years to pay off his children overall education fees throughout their primary school period. Assuming David’s salary stays constant throughout 6 years from now.
a. Based on the past performance of S&P 500 index, David expects an average return of 12% p.a. on his investment. If he decides to invest all his savings in the bank only, how much will he get in 6 years? Will David have $200,000 he needs in 6 years? If not, how much more money will he need today? PV=FV/(1+r)t ; FV=PV(1+r)t(5 marks)
b. What advices you can give David to achieve his goal in 6 years’ time? (3 marks)
Question 2 (7 Marks) 金融原理考试代写
a. Whale Watching Limited issued 14-year bonds one year ago at a coupon rate of 6.9 percent. The bonds have a face value of $200 000 and make semi-annual payments. If the YTM on these bonds is 5.5 percent, what is the current bond price? (5 marks)
b. If you expect the future inflation rate is low in next 3 years, what characteristics of the straight bond will have a better performance? (2 marks)
Question 3 (10 marks)
b. You believe that both financing and investing decisions contain new information of firm value perceived by the investors. Thus, stock price reacts positively or negatively to it. List two (2) decisions each made for financing and investing by firms. (4 marks)