Time Value of Money
If you save RM 10,000 today in BANK with interest rate of 2.7% per annum, calculate the
interest and total amount after Five (5) years?
If you put RM 5,000 today in an account that pays 5% interest, compounded ann
BASIC ORDER OF INFORMATION AND FORMAT FOR
Author/s surname/s (Year) or (Author/s surname/s, Year)
Author/s surname/s, initials. (Year) Title. Place of
e.g: Sloman (2004) or (Sloman, 2004)
MAMA Foods plc produces a range of convenience processed foods for a number of
supermarket chain stores. Its success has been based on the expertise and customer-driven
emphasis of its research and development team.
The R&D team has identified
1) Business problem face
2) Business idea
3) Partners involve
4) Industry and target market
5) Competitive environment
6) Potential location
7) Expected amount of money
8) Action plan
The Basics of Capital Budgeting
What is capital budgeting?
Analysis of potential additions to fixed
Long-term decisions; involve large
Very important to firms future.
What is the difference be
Cesar Milan Ltds 12-year $1,000 par bonds pay 12 percent interest. Your required rate of return
is 11 percent. The current market price of the bond is $1,100.
Determine the expected rate of return of the bond.
What is the value of
CHAPTER 2: NATIONAL INCOME
DEFINITION: NATIONAL INCOME
National Income is a term used to measure the monetary value of the flow of output of
goods and services produced within the economy over a period of time.
Gross Domestic Product (GDP)
a) The common stock of Princess Inc. paid $1.50 in dividends last year. Dividends are
expected to grow at an 8 percent annual rate for an indefinite number of years. If Princess
Inc.s current market price is $25.50, what is the stocks expected rate of ret
How is valuation of any financial asset related to future cash flows?
The valuation of a financial asset is equal to the present value of future
Why might investors demand a lower rate of return for
How is the future value (Appendix A) related to the present value of a single
sum (Appendix B)?
The future value represents the expected worth of a single amount, whereas the
present value represents the current worth.
Cost of Capital and WACC
Many financial decisions in a company involve the calculation of the cost of equity capital.
The following data relates to Pemaju Sdn Bhd:
Current share price
Current annual gross dividend per share
Expected annual growth rate
Answer for tutorial questions (Week 1)
1. It refers to that part of the management activity which is focused with the
planning and controlling of companys financial resources. Financial
management is concerned with the maintenance and creation of the econ
Q1. P = D/K
Calculate for the value of preference share if:
The dividend is RM5 and required return is 10%.
Q2. K = D/P
Calculate for the required return of preference share if:
The dividend is RM0.70 and the value of share is RM7.
Explain what are the purpose of capital budgeting?
Mutually exclusive and independent projects
Divisible and indivisible projects
What are the reasons for capital rationing?
Atom Bhd. is inves
What is risk? Give the examples the risks that face by business organizations.
Risk is possibility that actual future returns will be different from expected return. Risk
implies that there is a chance for some unfavourable event to occur. There
INTI INTERNATIONAL COLLEGE SUBANG
DIPLOMA IN BUSINESS
FIN2102: FINANCIAL MANAGEMENT
GROUP ASSIGNMENT: APRIL 2016 SESSION
DUE DATE: Week 12 (Long Semester)
INSTRUCTION TO STUDENTS:
1. This assignment consists of FOUR (4) questions. Students need to answer