BAFB1013 Assume you are a financial manager, managing your client investment. Your client has three options of investment as presented below: Principles Of Finance Assignment, UIU, Malaysia

School

UNITAR International University (UIU)

*We aren't endorsed by this school

Assignment Type

Individual Assignment

Subject

BAFB1013 Principles of Finance Assignment

Uploaded by Malaysia Assignment Help

Date

18/12/2023

Question 2

a. Assume you are a financial manager, managing your client investment. Your client has three options of investment as presented below.

Investment 1: YangLang Inc’s common stock current dividend (Do) is RMO.40, and is expected to grow at a rate of 6% annually.

Investment 2: Alamanda Inc’s dividend will grow at a rate of 40% this year, 25% next year, 23% and 10% thereafter. The current dividend (Do) is RMO0.80.

Investment 3: Chamomile Inc’s preferred stock pays a RM2.75 dividend.
From the above information you are required to:

i. determine the price of today’s stocks for each, if the required rate of return is 15%,
ii. based on your answer in part (a) recommend which stock is the best for your client to invest in. Explain your recommendation. (2 Marks)

b. Rose&Petal bonds, have a coupon rate of 8% and a par value of RM1000, and will mature in 20 years. If you require a return of 7%, what price would you be willing to pay for the bond? (2.5 Marks)

Get 30% Discount on This Assignment Answer Today!

Get Help By Expert

Seeking support with the BAFB1013 Principles of Finance Assignment at UNITAR International University (UIU), Malaysia? Our Malaysia assignment help online service specializes in assisting students with their studies and acting as a Final Year Project Helper.Whether it's navigating investment options as a financial manager or comprehending various financial strategies, our experts are here to help. Let us guide you through this assignment and elevate your understanding of finance at UIU!

Answer

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now
Convincing Features
Plagiarism Free Report
On-Time Delivery
Native Writers
A+ Quality
100% Confidential
24*7 Online Assistance

Get these features included in Your Assignment

Get Assistance for Assignments, online Exam, and Projects Writing