Grains Plus Finance Assingment Help With Solution
You are the owner and operator of Grains Plus located at Bathurst NSW. The rain during the spring have been the best in a decade and you are expecting a bumper wheat crop. This has prompted you to rethink your current financing sources.
According to your past experience, you believe there is a need for additional $240,000 for the three months’ period ending with the close of the harvest season. After meeting with your business banker, you are bit puzzled over what the additional financing will actually cost. The banker has quoted you an annual interest rate of 1% over Reserve Bank of Australia cash rate (let’s assume it’s currently 3% p.a.) and has also requested that the firm increase its current bank balance of $4,000 up to 20% of the loan.
(a) If interest and principle are all repaid at the end of the three-month loan term, what is the annual percentage rate on the loan offer make by the bank? (3 marks)
(b) If the bank were to offer to lower the rate to the Reserve Bank of Australia cash rate if interest is discounted, should you accept this alternative? (3 marks)
You own a portfolio of the following shares:
• The risk-free rate is 7%. Also, the expected return on the market portfolio is 15.5%.
(a) Calculate the expected return on you portfolio.
(b) Calulate the portfolio beta.
(c) Given the information above, plot the security market line and plot the shares from your portfolio on the graph.
(d) From your plot in the part (c), which shares appear to be the winners and which ones appear to be the losers?
(e) Why should you consider your conclusion in part (d) to be less than certain? (1 mark)
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id email@example.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id firstname.lastname@example.org and email@example.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
- Corporate Finance Assignment help
- Financial Management Assignment Help
- Supply Chain Management Assignment Help
- Taxation Homework Help
- MBA operations management assignment help
- History Assignment help
- Geography Assignment Help
- Anthropology Assignment help
- Archaeology Assignment help
- Counselling assignment help
- Criminology assignment help
- Linguistics Assignment Help
- Architecture Assignment Help
- Philosophy Assignment Help
- Physics and Astronomy Assignment Help
- Physiotherapy Assignment Help
- Politics Assignment Help
An overseas investor has approached your investment advisory firm seeking to invest AUD 120 million in one of the two mining company’s ordinary shares. Your Chief Investment Officer has done some preliminary research on several listed mining companies financial returns and current financial position that has helped her to narrow the choice to two companies.
You have been given the assignment to analyse and prepare a report as to which of the two mining company’s ordinary shares are better value for investment.
Based on your market research (qualitative and quantitative) on NEWCREST MINING LIMITED and ORICA LIMITED, you are required to prepare a recommendation report to the Chief Investment Officer as to the shares of which company provide better value for investment. The overseas investor requires high returns on investment as well as growth in value of shares. The investor is looking to park their funds for long term i.e. 10 years. In your report, include all the calculation and market information on which your recommendation is based.
For this assignment you may use the information provided in the below websites and any other sources you feel will assist you to come up with your recommendation.
As a minimum calculate the following to help you come up with a recommendation:
• The required rate of return on ordinary shares of the above two mining companies using Capital Asset Pricing Model.
• Ordinary share valuation – Constant dividend growth model.
• Find the monthly holding period return (%) for the period 01 July 2015 to 30 June 2016 for Newcrest Mining Limited and from 01 October 2015 to 30 September 2016 for Orica Limited. The monthly holding period return is the percentage return you would receive if you bought an asset on the first day of the month (opening price) and sold it on the last day of the month (closing price). Graph your results on one graph with returns on the y axis and time on the x axis. (Use ‘Close’ rather than ‘Adjusted Close’ for the selling price and ignore any dividends.
o Base your calculation on the most recent financial results i.e. 30/06/2016 for Newcrest Mining and 30/09/2016 for Orica Limited.
o Show all your calculation on the annexure.
o Limit your recommendation report to the Chief Investment Officer between to 300 to 400 words using financials theories and concepts. (9 marks)
Product Code :Fin334
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at firstname.lastname@example.org but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.