Question 1. To maximize net present values in what sequence should the projects be selected.

Question 2. Choose which government moves relate principally to fiscal policy?

Question 3. Given that ABC's cosy of capital is 7.5 %, the IRR of the project that should select is?

Question 4. Calculate the gearing ratios based on Book value , and market value?

Projects. 1. 2. 3 and 4, are existing but the company which is facing deficiencies of capital over the next year but hopes capital to be freely available thereafter, 1 2 3 4 Capital required over life of project 20 30 40 50 Capital required in following year 20 10 30 40 Net present value of project at company's cost of capital 60 40 80 80 To maximize net present values in what sequence should the projects be selected. Choose which government moves relate principally to fiscal policy? 1 Reducing interest rates to stimulate consumer spending 2 Reducing taxation while maintaining public spending 3 Using foreign currency reserves to buy the domestic currency 4 Borrowing from the capital markets and spending it on public works ABC Corp. is looking at two mutually exclusive projects with the following af ter-tax cash flows: TIME 0 1 2 3 5 6 Project 1 -10 000 2 000 2 000 2 000 4 000 4.000 4 000 Project 2 -12,000 2.000 2,000 2.000 5.000 5.0005.000 Given that ABC's cost of capital is 7.5%, the IRR of the project that should select is closest to: The following is an excerpt from the balance sheet of ABC Co. at 30 September 2019: Ordinary shares of 25 each 250.000 Reserves 350.000 7% P1 preference shares 250,000 15% bonds unsecured 150.000 The ordinary shares are currently quoted at 1.25, the bonds are quoted at P85 per P100 nominal and the non-redeemable preference shares at 65 each. Calculate the gearing ratios based on Book value market value