Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

4G s. A:TT (A) CASE STUDY Part (5 marks) Faisal Ali after completing his education in accounting and finance started an investment company along with

image text in transcribed
4G s. A:TT (A) CASE STUDY Part (5 marks) Faisal Ali after completing his education in accounting and finance started an investment company along with his brother Said. Their company seeks to provide investment solutions to its clients like opening portfolios investing in the stock market, etc. in Oman. Although the business is doing well both of them have realised that they are not good at managing finance, and feel confused and frustrated sometimes due to financial crises that may suddenly arise. To avoid such situations in the future, they hire you as the financial manager. Consider that there will be a strong crisis soon in the future, hence the corna affected badly the global economy. In context of the above case: 1- what you should concem to achieve the main objectives of your position 2- Taking into consideration the situation these days, what are the most important decisions would advise taking care of when they elect the stocks what kind of portfolio they must avoid? Why? Give a reason in support of your answer (B) Numerical Part (5 marks) Suppose you deposit OMR 15800 today in a bank that gives 13.5% interest compounded morly Calculate its future value at the end of - 11 years 14years A company expects a series of 60 receipts of OMR 550 each year. Determine the present value of this series assuming an interest rate of as per year 1-An investor from stock exchange deposits Omr 5350 into a Bond. After Thirty years the value of that bond is worth Omr 13350. What rate of return did the investor car on the investment? 4G s. A:TT (A) CASE STUDY Part (5 marks) Faisal Ali after completing his education in accounting and finance started an investment company along with his brother Said. Their company seeks to provide investment solutions to its clients like opening portfolios investing in the stock market, etc. in Oman. Although the business is doing well both of them have realised that they are not good at managing finance, and feel confused and frustrated sometimes due to financial crises that may suddenly arise. To avoid such situations in the future, they hire you as the financial manager. Consider that there will be a strong crisis soon in the future, hence the corna affected badly the global economy. In context of the above case: 1- what you should concem to achieve the main objectives of your position 2- Taking into consideration the situation these days, what are the most important decisions would advise taking care of when they elect the stocks what kind of portfolio they must avoid? Why? Give a reason in support of your answer (B) Numerical Part (5 marks) Suppose you deposit OMR 15800 today in a bank that gives 13.5% interest compounded morly Calculate its future value at the end of - 11 years 14years A company expects a series of 60 receipts of OMR 550 each year. Determine the present value of this series assuming an interest rate of as per year 1-An investor from stock exchange deposits Omr 5350 into a Bond. After Thirty years the value of that bond is worth Omr 13350. What rate of return did the investor car on the investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions