You are a MNC looking at buying a company in England. You have determined that the free cash flow is $150 Million growing at 9% each year. How much would you pay for this company? You will have to use the Capital Asset Pricing Model (CAPM), determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows that you will determine after applying the growth For the MNC:

For England:

•The Tax rate is determined by research.

•The cost of debt is 14%

•Risk free rate determined by research on your country.

When using CAPM the 10 year treasury is preferred

•Market return is determined by research. A good proxy for your country should be the average market return of an index in your country similar to the S&P 500 over the last 20 years.

•The Beta 1.3 •50% debt 50% equity

•Perpetual growth 2.5%

To calculate the cost of equity Rf + B * (MR – Rf), CAPM The WACC= E/V*Ce + D/V *Cd*(1-T)

The value of your company is the sum of all the cash flows plus the terminal value discounted by the WACC.

The Perpetuity Growth approach assumes that free cash flow will continue to grow at a constant rate into perpetuity.

The Terminal Value can be estimated using the formula below.

TV=FCF (final forecast year) * (1 +g) WACC-g PV0= FCF1 +FCF2 +FCF3 +FCF4 +FCF5 +TV (1+WACC)1 (1+WACC)2 (1+WACC)3 (1+WACC)4 (1+WACC)5 (1+WACC)5

ii)        If the exchange rate of dollar stays fixed, how would this change affect us domestic product and income? What effect would this change in Fiscal Policy have on dollar?

Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $7 million, $11 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 7%. Brandtly's WACC is 16%, the market value of its debt and preferred stock totals $52 million, the firm has $16 million in non-operating assets, and it has 25 million shares of common stock outstanding.

1. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.
   $   24534308.15
2. What is the firm's horizon, or continuing, value? Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.$   190222222
3. What is the market value of the company's operations? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. $   129592348.1
4. What is the firm's total market value today? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. $ ?  
5. What is an estimate of Brandtly's price per share? Do not round intermediate calculations. Round your answer to the nearest cent. $ ?

Please use excel and show the excel formulas in detail.

Alice wants to deposit $35,000 now $45,000 at the end of 6 years at a bank that pays 10% interest compounded semiannually. She wants to withdraw an amount every year for the first 6 years and to withdraw exactly $1000 more for the following four years. What is the maximum amount she could withdraw in year 1?

in what ways do non bank financial intermediaries (NBFIs) constitutes clog on the effectiveness of monetary policy?

When doing short-term financial projections, is it reasonable to forecast the Total Assets as depending on sales forecasts?

Explain your answer.

2. Complete problems: NPV, IRR, MIRR, Profitability Index, Payback, Discounted Payback
   
   A project has an initial cost of $60,000, expected net cash inflows of $10,000 per year for 8 years, and a cost of capital of 12%. Show your work.

• What is the project’s NPV? (Hint: Begin by constructing a timeline).
• What is the project’s IRR?
• What is the project’s MIRR?
• What is the project’s PI?
• What is the project’s payback period?
• What is the project’s discounted payback period?

13，Distinguish between the concepts of the maturity-risk premium and the liquidity-risk premium.

14，Identify three prominent theories that attempt to explain the term structure of interest rates.

3. Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce the following net cash flows:

Year          Project A                       Project B

1 $5,000,000 $20,000,000

2                10,000,000                    10,000,000

3 20,000,000                    6,000,000

• What are the two project’s net present values, assuming the cost of capital is 5%? 10%? 15%?
• What are the two projects’ IRRs at these same costs of capital?

Show your work.

How was ANZ Bank impacted by the regulations after the global financial crisis (GFC)?

Please explain and analyse in details, thanks.

(a)discuss the general equilibrium approach to interest rate determination. (b) what effect does an increase in saving has on equilibrium interest rate and income (c) what is financial intermediation

Calculate the amount you will receive from the sale of a certificate of initial deposit of 9 months, initial amount of 150000 at 5% interest rate, when the corresponding risk and long-term placements yield 10% and 6, 4, and 2 months remain to expire

Investment Theory:

Indicate whether the statement is true, false, or uncertain, and explain why.

5. Weak-form efficiency implies strong-form efficiency, as well.

6. The fact that nearly half of all professionally managed mutual funds outperform the S&P 500 in a typical year violates market efficiency.

7. In an informationally efficient market, since every asset is correctly priced, diversification does not yield any extra benefit.

Investment Theory:

For each of the following, indicate whether the statement is a violation of the Efficient Markets Hypothesis and, if so, of which form. Explain why. Your answers should be short and concise.

1. Stocks before large dividend increases have consistently positive abnormal returns. The dividend increase is publicly announced.

2. Company A announced its intention to hire Mr. X, a well-known specialist in the industry. Its stock price gradually rose over the two weeks following the announcement.

3. You observe significant positive serial correlation between non-overlapping market returns (e.g. weekly returns of security A are positively correlated with the returns the preceding week).

4. You observe significant negative serial correlation between non-overlapping market returns (e.g. monthly returns of security A are negatively correlated with the returns the preceding month).