Question: plz do not use excel for numaricals. solve it on page step by step. do not just mention answers. l hope you answer me as

plz do not use excel for numaricals. solve it on page step by step. do not just mention answers. l hope you answer me as soon as possible. (Urgent)
Corporate Finance Assignment #1 Company ABC Ltd. is the manufacturer automobile parts and working in this sector since last 60 years. This company has a total assets of 98 million Rupees. The company's accounting information indicates that these assets are financed with 60% debt and 40% equity. The company has adopted different ways to generate capital. Both preferred and common stocks are issued by the company, also different types of bonds are sold by this company to accomplish capital requirements. Furthermore loan from financial institution has also been taken by the company for 40 million Rupees. The company has obtained a loan of Rs.3 million from a financial institution. For this purpose it has to deposit Rs.400, 000 at the end of each year. The company also wishes to analyze its cash position after 8 years if it deposit Rs.400,000 at the end of each year and the expected average interest rate of market is 14% compounded annually. Company's financial manager has also shared an investment plan with the CEO of company in which he highlighted that certain Financial Institutions offer to pay Rs.5000000 after 7 years. Currently interest rate charged by these institutions is observed as 19%, 20% and 18% compounded annually. Therefore there is also need to calculate how much amount company need to deposit today to receive this 5 million after 7 years against each rate. Q1:- Calculate total amount paid to financial institution. Q2:- Calculate amount need to be deposited to receive 5 million. Corporate Finance Assignment #1 Company ABC Ltd. is the manufacturer automobile parts and working in this sector since last 60 years. This company has a total assets of 98 million Rupees. The company's accounting information indicates that these assets are financed with 60% debt and 40% equity. The company has adopted different ways to generate capital. Both preferred and common stocks are issued by the company, also different types of bonds are sold by this company to accomplish capital requirements. Furthermore loan from financial institution has also been taken by the company for 40 million Rupees. The company has obtained a loan of Rs.3 million from a financial institution. For this purpose it has to deposit Rs.400, 000 at the end of each year. The company also wishes to analyze its cash position after 8 years if it deposit Rs.400,000 at the end of each year and the expected average interest rate of market is 14% compounded annually. Company's financial manager has also shared an investment plan with the CEO of company in which he highlighted that certain Financial Institutions offer to pay Rs.5000000 after 7 years. Currently interest rate charged by these institutions is observed as 19%, 20% and 18% compounded annually. Therefore there is also need to calculate how much amount company need to deposit today to receive this 5 million after 7 years against each rate. Q1:- Calculate total amount paid to financial institution. Q2:- Calculate amount need to be deposited to receive 5 million
Step by Step Solution
There are 3 Steps involved in it
Lets go through each question step by step Q1 Calculate the total amount paid to the financial insti... View full answer
Get step-by-step solutions from verified subject matter experts
