(a) Identify and briefly describe two phases of the capital budgeting process. (b) Would saving time by skipping one of these phases in the capital budgeting process make sense financially?

Matthew has a new job as business analyst. He plans to invest 10 percent of his annual salary after the tax into a retirement account at the end of every year for the next 30 years. Suppose that annual return of the investment is 6%, and his current salary before tax is 90k which grow 3% per year. The tax will apply as 15% on the salary up to 50k and it is 20% for the salary interval of 50k and 80k and the tax rate will be 25% for the remaining salary more than 80k (for example if his salary will be 105k, he is paying 15% tax on his first 50k and 20% in the next 30 k and 25% on his next 25k of his salary). then:
a)   Create a spreadsheet which shows Matthew the balance of retirement account for various levels of annual investments and returns.
b)   If Matthew aims to gain $1,000,000 at the end of the 30th year, what percentage of his salary he should put in the investment annually.

a) Provide two reasons for a company to lease some type of capital equipment, rather than buying it. (b) Provide three reasons for a company to buy some capital equipment, rather than lease it.

Describe the close relationship between finance and economics and explain why the finance manager should possess a basic knowledge of economics . What is the primary economic principle used in managerial finance ? ( 250-300 words)

A loan of 124,000 is to be repaid in 30 years by month-end repayments starting in one month. The interest rate is 4.8% p.a. compounded monthly. Calculate the interest paid in Year 5. (between the end of month 48 and the end of month 60). Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67) (Hint: you can use Excel to find the answer.)

How does a company utilize stocks and bonds in financing growth? Identify the major sources of external financing for companies.

A new market opportunity has opened, and you expect that you will be able to double your sales in 2019. Assume that COGS, operating expenses, current assets and current liabilities maintain the same PERCENTAGE OF SALES as in 2018. Assume no new fixed assets, nothing from 2018 was fully depreciated, and you will have the same dividend policy in 2019 as you did in 2018.

Use the financial statements below to determine if additional funds will be needed, and if so, how much.

a- No Additional Funds Needed

b- $3,333

c- $65,000

d- $8,000

Briefly outline the history of HSBC plc. How would you describe its business model?

How does wholesale banking differ from retail banking in terms of: (a) product range; (b) client coverage; (c) marketing; (4) risk management; (5) pricing.

Explain diversification and benefit of a diversified portfolio.

Suppose you want to have $700,000 for retirement in 25 years. Your account earns 7% interest compounded monthly. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $

Briefly discuss the business of wholesale banking, including the main products and services, as well as the customer base. What are the key challenges in the wholesale banking market?

The post-crisis proposals included in the Vickers Report became law in 2013 (the “Banking Reform Act”) and will come into force in 2019. Discuss how the UK ring-fencing rules will affect universal banks.

Knotts, Inc., an all-equity firm, is considering an investment of $1.73 million that will be depreciated according to the straight-line method over its four-year life. The project is expected to generate earnings before taxes and depreciation of $599,000 per year for four years. The investment will not change the risk level of the firm. The company can obtain a four-year, 9.8 percent loan to finance the project from a local bank. All principal will be repaid in one balloon payment at the end of the fourth year. The bank will charge the firm $49,000 in flotation fees, which will be amortized over the four-year life of the loan. If the company financed the project entirely with equity, the firm’s cost of capital would be 14 percent. The corporate tax rate is 23 percent. Using the adjusted present value method, calculate the APV of the project. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)