Thank you much for writing my perfect assignment!.!. Very well written and great service
You recently joined a small investment company in Sydney as an intern. As part of your first
assignment youÃ¢â‚¬â„¢ve been given an opportunity to invest $10,000 of a not so sophisticated investor to
the following alternatives:
Capital Fashion Ltd bonds (apparel retailers), with a face value of $1,000 and a coupon
interest rate of 8.75% are selling for $1,314 and mature in 12 years.
Agri Credit Ltd (financial services provider) preference shares are paying a dividend of
$2.50 and selling for $25.50
Southern Cross Electrical Ltd (electrical appliances manufacturer) ordinary shares are
selling for $36.75. The shares recently paid a $1.32 dividend and the companyÃ¢â‚¬â„¢s earnings per
share have increased from $1.49 to $3.06 in the past five years. The firm expects to grow at
the same rate for the foreseeable future.
Your clientÃ¢â‚¬â„¢s required rates of return for these investments are 6% for the bond, 7% for preference
shares and 15% for the ordinary shares. Using the above information, answer the following questions:
1. Calculate the value of each investment based on the required rate of return. (6 marks).
2. Which investment would you recommend and why? Research on the current trends and future
prospects on each of the industries and include a summary. (4 marks).
3. Assume Southern Cross ElectricalsÃ¢â‚¬â„¢ Chief Finance Officer expects an earning downturn and a
resulting decrease in growth of 3%. How does this affect your recommendation? (5 marks).
4. What required rates of return would make your recommendation indifferent to all three options? (5
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more