The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four...

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The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.No excel files are allowed to be submitted except the cases where it is allowed. It is a requirement that students practice and solve the questions in finance subjects using scientific calculators, not financial calculators or excel. To enable students to make answers in word format, I have made the formulas available in word files for you to copy and paste to your answers. The word files of formulas are available at Tutorial Materials/Week 1,2,3.../Formulas Learnt in this topic. In the Interactive Tutorial Solutions Week 6, I also provide some tips for inserting and displaying the mathematic symbols in word files. Besides, students can copy the presentations of calculations from the PPT files of Interactive Tutorial Solutions each week as template for solving the questions of Pre-recorded Tutorials in MS word.

Khushboo · Accepted Answer

Solution week 1
The five principle of the finance which lays the foundation of the finance are as follows:
a) Cash flow matters: It gives the value of the business as the positive cash flow is more important than the profit of the business as it represents the money which can be spent and reinvested in order to make more money. 
b) Money has time value: It is most fundamental principle of the finance that the money is having the time value. It focuses on the creation and measurement of the value. The cost benefit relationship is the key concept in finance. 
c) Risk requires reward: The investor will only invest if they are expecting to receive a return on their investment and the risk return relationship is another important concept in the finance for the valuation of the stocks, bonds and capital investment.
d) Market prices are generally right: The efficient market is the one where the price of the assets which are trading in market reflect all the information at any point of time.
e) Conflict of interest leads to agency problems.
Solution week 2:
Given is the following information:
Total assets= $860,000
Number of share outstanding = 75,000 shares
Total book value = $750,000
Market value = $12 per share
Profit margin = 6.5%
Total asset turnover = 1.5
Calculation of sales for the entity:
Asset turnover ratio = sales/ Total assets
1.5 = Sales/ 860,000
Sales = 860,000*1.5
Sales = $1,290,000
Calculation of net profit:
Sales = $1,290,000
Profit margin = 6.5%
Net Profit = sales*profit margin
Net profit = $1,290,000*6.5%
Net Profit = $83,850
Calculation of earnings per share
Earnings per share = Net income attributable to shareholders/ Weighted average share outstanding
                                  = $83,850/75,000
                                  = $1.118
Calculation of market to book ratio
Market to book ratio = Market Capitalization/ Total book value
Market Capitalization = $75,000*$12
                                        = $900,000
Now,
Market to book Value = 900,000/ 75,

The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.No excel files are allowed to...

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