In 1928, Francis P. Rothmueller, a Northwest railroad magnate, established an endowment to fund the
Rothmueller Museum in Miineapolis. The Museum currently has a $30 million endowment, but it also has
substantial operating costs and continues to add to it
Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of
financial position of the companies immediately after the acquisition are provided below. All assets have
been reported following fair value.
This assignment is to be completed in groups of three and carries 30 per-cent of the marks in
this unit. There are four questions.
Question 1. (7.5 Marks)
Black Crow Company is evaluating a new widget with a life of 2 years. The widget costs
Week 5 Hw questions 4,7,17and 29
. Portfolio Expected Return. You have $10,000 to
invest in a stock portfolio. Your choices are Stock X
with an expected return of 14 percent and Stock Y
with an expected return of11 percent. If your goal is
to create a p
1. (i) When Cash Flows change sign several times or when Cashoutflow occurred more than once at a different
stage of the project at a different time period then first we calculate total cashoutflow.
Calculation of Payback period:
Expected Return of Stock X (ERX)=
Expected Return of Stock Y (ERY)=
Expected Return of Portfolio (ERP)
We know that the Expected return of portfolio shall be the weighted average of expected return of
Berry Mountmanufactures a variety of Pie. The company is considering introducing a new product (Pizza
Pie). The companys manager has been provided with the following information by their business analyst.
The project has an anticipated economic life of 5