Question 1

1. Discuss the difference in liability associated with the different trading structures. What are the advantages and or disadvantages of these differences? (3 marks)

1. Australia Post CEO Ahmed Fahour earned $5.6 million in 2015-16. This was estimated to be 119 times that of an ordinary postal worker and this caught the news headlights in 2017.

What are your thoughts regarding excessive amounts of executive compensation regarding good financial management?

Do executives deserve to be paid more than the average person? Why? What are the implications of paying executives excessive remuneration? (12 marks)

Question 2

Workings, final answer and conclusion must be shown.

1. You are looking for an investment that will pay you $20,000 per year for the next ten (10) years and you require a 5% return, what should you pay for this investment? (4 marks)

1. Pradeep has purchased a new car which cost him $30,000. The finance company is offering him a nominal interest rate of 3% over 5 years. What is Pradeep's monthly outgoing/cost? What is the total interest amount paid? What is the EAR? (6 marks)

1. ABC Ltd issued a bond with a $2,000 face value, 8 (8) years to maturity and annual coupon of $50. The yield to maturity is 10%, what price would the bond sell for? Is this a good Investment? Justify your answer. (5 marks)

Question 3

1. Financial statements represent the perfect measure of the organization's financial health. Discuss. (10 marks)

Analyse and communicate to Crown Resorts Limited, a publicly listed Australian company regarding the systematic and unsystematic risks it faces.