Amity Diploma in Forex Management Solve Assignment For International Finance & Forex Management

What are the factors affecting the capital structure of the company?
 The company raised preference share capital of $ 100000 by the issue of 10% preference share of $ 10 each. The floatation cost is 1%. Find out the cost of preference share capital issued at i) 10% premium ii) 10% discount

Rico Ltd & Sico Ltd are in the same risk class & are identical in all respects except that the company Rico uses debt while company Sico does not use debt. The levered firm has USD 900000 debentures carrying 12 % rate of interest. Both the firms earn 20 % operating profit on their total assets of value USD 25 lacs. The company is in tax bracket of 35% & capitalization rate of 15% on all equity shares.
You are required to compute the value of both the firms using Net Income approach.

Zain corporation ltd is trying to decide on replacement decision of its current manually operated machine with a fully automatic version. The existing machine was purchased ten years ago. It has a book value of $ 140000 and remaining life of 10 years salvage value $40000. The machine has recently begun causing problems with breakdown and its costing the company $ 20000 per year in maintenance expenses. The company had been offered $ 100000 for the old machinery as a trade-in on the automatic model which has a deliver price of $ 220000. It is expected to have a ten year life & a salvage value of $ 20000. The new machine will require installation modifications costing $ 40000 to the existing facilities, but it is estimated to have cost savings in materials of $ 80000 per year. Maintenance costs are included in the purchase contract and are borne by machine manufacturer. The tax rate is 40 % .Find out the relevant cash flows

i) An investor has two options to choose from: a) $ 7000 after 1 year b)$ 10000 after 3years.Assuming the discount rate of 9% which alternative he should opt for?
ii) A person would need USD 5000, 6 years from now. How much should he deposit each year in his bank account, if yearly interest rate is 10 %?

Why is the consideration of time important in financial decision making? How can time be adjusted?

What is the need of International Financial Management? List out the difference between domestic Finance & International Finance.

Calculate the NPV and IRR for the project from the standpoint of the parent company

What are your recommendations for the proposal?

The EBIT is :

EPS is:

The weighted average cost of capital is calculated :

The cost of Debt is always calculated

The cost of equity takes into account the

The cost of Retained Earnings is same as :

The optimum capital structure is the one with

International Finance is

Which of the following is not a function of finance Manager?

__________ is concerned with the maximization of a firm's earnings after taxes.

What one is not the decision of financial management?

Money has time value because

In order to find the value in 1995 of a sum of $ 100 invested in 1993 at X% interest

The relationship between effective rate of interest (r) and nominal rate of interest (i) is best represented by

If you invest $ 10,000 today for a period of 5 years, what will be the maturity value if the interest rate is?

The operating profit is same as:

Which of the following statements is correct regarding profit maximization as the primary goal of the firm?

You need to understand financial management even if you have no intention of becoming a financial manager. One reason is that the successful manager of the not-too-distant future will need to be much more of a __________ who has the knowledge and ability to move not just vertically within an organization but horizontally as well. Developing __________ will be the rule, not the exception.

Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?

You are considering investing $ 1,500 at an interest rate of 5% compounded annually for 2 years or investing the $1,500 at 7% per year simple interest rate for 2 years. Which option is better?

What will be the amount accumulated by $ 9,000 in 9 years if it is compounded at a rate of 9% per year?

If Rs300 is invested now, Rs500 two years from now, and Rs700 four years from now at an interest rate of 3% compounded annually, what will be the total amount in 10 years?

An individual deposits an annual bonus into a savings account that pays 5% interest compounded annually. The size of the bonus increases by Rs200 each year and the initial bonus amount at t=1 was Rs250. Determine how much will be in the account immediately after the fifth deposit.

What is the equal-payment series for 10 years that is equivalent to a payment series of Rs 15,000 at the end of the first year (t=1) decreasing by Rs300 each year over 10 years? Interest is 9% compounded annually.

the time value of money in the present year will be

Which is the best measure of capital budgeting?

When we want to go to future value of a lump sum amount, we use;

When we want to come to the present value from future value of a lump sum amount, we use;

When we want to go to future value of an Annuity, we use;

When we want to come to the present value from future value of an Annuity, we use;

Capital Budgeting means;

In capital budgeting, when money is going out of the firm, it is called

the mutually exclusive decisions are those,

In capital budgeting, when money is coming in the firm, it is called

Which of the following is not the reason for Time Preference of money?

Capital structure of a firm means:

Which of the following is not a factor effecting capital structure?

The Operating Leverage gives the relationship between

The Financial Leverage gives the relationship between

The Combined Leverage gives the relationship between