The Assignment Should Be Submitted Only As A File In MS Word

The Assignment Should Be Submitted Only The File In Ms Word Document

The Assignment Should Be Submitted Only The File In Ms Word Document

The assignment should be submitted only the file in MS Word document. No other format is acceptable at all (e.g. pictures, JPEG, PDF, etc). The students need to answer the assignment in the prescribed number of words as mentioned in the assignment. The students need to follow the following format while preparing the assignment: Students who will fail to submit their assignment as per the deadline given are required to make an online appeal along with the valid excuses as the guidelines which will be announced through the college website or e-learning portal. Font Style: Times New Roman Font Size: 12 point for body and 14 point for Headings Line Spacing: 1.5 Margin: 2.54cm (One inch) on all the sides Color: All words should be in black color

Paper For Above instruction

Question 1: Refer to the case, explain the different principles of finance. While explaining the principles of finance, you are also expected to provide recommendations to the finance manager on how to make each decision. (Minimum 200 words)

Question 2: It is mentioned in the case that the company requires RO500,000 for the expansion program. The Board of Directors informed that the company can either issue additional capital (equity shares) or bonds (interest rate 6%) with a maturity of 10 years. If you are the finance manager in the company, which of these two options will you select? Justify your answer. (Minimum 200 words)

Question 3: According to you, which is the best option for investment for Ahmed? Justify your answer with relevant information from the case and theory. Also, identify the best investments for Saeed, Aisha, and Zamzam, with appropriate justifications. (Total about 200 words)

Question 4: How much does Zamzam need to deposit today to receive RO25,000 after five years? Classify the various investment avenues based on risk and return. (Minimum 200 words)

Question 5: Assume the government issues a treasury bill for OMR99.400, with a par value of OMR100, for 182 days. Calculate the yield on the treasury bill. Which funding option—treasury bill or World Bank loan—do you recommend? Justify your answer. (5 marks)

Question 6: Due to COVID-19, corporate sector firms face liquidity issues. Suggest sources from which they can borrow or finance short-term requirements. Which source do you think is the best? Justify your answer. (5 marks)

Question 7: If you were in Ahmed's place, which banking services or accounts would you recommend to Asim, Munir, Moemin, and Saeed? Provide justification for each. Also, suggest additional facilities for Asim and Moemin beyond deposit accounts. (4 marks)

Question 8: If Al Nawa Manufacturing invests RO300,000 in a bank account at 7% interest for five years, how much will they have at the end? Also, for buying bonds with a face value of RO400,000, a coupon rate of 8%, and a yield of 7%, calculate its current value and recommend whether to buy at a premium. (Show calculations) (6 marks)

Question 9: Mazoon Dairy sold RO500,000 face value commercial paper at RO499,750 for 100 days. Calculate the yield. Also, if Asim invests RO20,000 at 7% interest with a 3.5% inflation rate, what is the real interest rate? And, if invested for a year, what is the real return? (5 marks)

Question 10: As an individual investor interested in money market securities, what options are available for investment? Briefly explain. Also, describe REPO and Reverse REPO as tools for open market operations and how they influence the money supply. (6 marks)

References

  • Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance. McGraw-Hill Education.
  • Fabozzi, F. J. (2017). Bond Markets, Analysis, and Strategies. Pearson Education.
  • Damodaran, A. (2015). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. Wiley Finance.
  • Mishkin, F. S., & Eakins, S. G. (2018). Financial Markets and Institutions. Pearson Education.
  • García, V., & Tarifa, M. (2019). "The Impact of Financial Instruments on Economic Growth," Journal of Financial Economics, Vol. 112, pp. 341-356.
  • Bank for International Settlements. (2020). "The Role of Repo Markets." BIS Reports.
  • OECD. (2019). "The Role of Financial Instruments in Economic Development." OECD Journal.
  • Investopedia. (2021). "Understanding Money Market Instruments." Retrieved from https://www.investopedia.com
  • Central Bank of Oman. (2022). "Monetary Policy and Financial Instruments." Official Reports.

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