Adele is 39 years old and is an opera singer. She recently received an inheritance amounting to $100,000. Her first thought is to travel to Austria for a year and study opera in Vienna. Her brother Andrew, an accountant, is concerned for her future. Andrew and Adele have made an appointment to get your financial advice. Andrew is hopeful you will be able to influence Adele to invest her windfall rather than spend it. During the discussion on risk profile, it becomes obvious that Adele has lost interest and is not engaged. Required: Part a) Suggest ways you might approach this situation and what techniques you might employ to demonstrate to Adele the importance of correctly determining her risk profile to assist in financial decision-making. [6 marks] Part b) What do you believe are the key elements within the client-adviser relationship? Briefly explain why you believe they are important. Barry has found himself in a difficult situation as his rent has risen to $490 per week. He owes $23,000 on his credit card (5% of the balance to be paid each month), has a study debt of $29,000 and makes monthly repayments of $380 on a personal car loan (principal balance of $27,000). His basic living expenses are currently about $19,000 per annum, but he often exceeds this amount by overspending on luxury items. Barry is finding it hard to pay his bills. In addition, there has been an interest-rate increase, meaning that the rate on the credit card ingeases to 22% per annum (interest calculated daily). Barry has only $600 in his bank account. His only assets are his car, furniture, jewellery and clothes. Barry is 32 years old and earns around $70,000 before tax. Barry has come to you for financial advice. Required Part a) As Barry's advisor, what recommendations can you make? [6 marks]| Part b) Simon wants to go on a New Zealand holiday in three years' time. He estimates he will need $6,000 for the holiday. If Simon invests $1,800 at the end of each of the next three years, in an investment fund at a return of 12 per cent per year, how much will he have for the trip? [2 marks] You are Wayne Stevens financial advisor. Wayne is very interested in purchasing the ordinary shares of Archer's Bathroom Supplies (ABS) Pty Ltd which are currently priced at $28.96. The company expects to pay an upcoming dividend of $2.02 and expects to grow at a constant rate of 6 per cent. Required Part a) Using the Gordon Growth Model, calculate the market value of the ABS share if the required rate of return is 12 per cent. [4 marks] Part b) Is this a good buy? Why or why not? [2 marks] Part c) Wayne's good mate at his football club, Dane, suggested that exchange traded funds could be perfect for his portfolio. Briefly explain what Wayne needs to consider prior to acquiring exchange traded funds