Question: Please answer the following questions below: 1) Established in 1990, Ganesh Dairy is one of the leading companies in the supply of fresh milk in
Please answer the following questions below:
1) Established in 1990, Ganesh Dairy is one of the leading companies in the supply of fresh milk in the US. In the early years, the business was limited to collecting and distributing fresh milk. However, Ganesh has since captured the majority of the market share by offering a wide range of dairy products including condensed milk, drinking yogurt, butter, cheese, powdered milk, etc. To be able to add more sources of capital to continue to meet the market and expand the business scale, Ganesh decided to raise capital by issuing 10,000 shares to the market. a) Which of the financial markets should Ganesh participate in? Why? b) Describe the characteristics and role of this type of market?
2)
To own a car, you can consider two options: Option 1: Rent a car for 3 years. The rental agreement states you need to pay $1000 today and $380 monthly to the owner for those 3 years. At the end of the contract, the car will be returned to the owner
Option 2: Buy a car in installments within 3 years. The car is currently priced at $28000. You will pay for the car every month for 3 years. Do you believe you can sell this car in 3 years for $15000? Knowing the APR rate is 6%
a) Determine the annual interest payment if you choose the option to buy a car in installments b) Should you buy or rent a car? Why?
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