Question
Consider the following table that contains selected financial data for Coca Cola Amatil (CCL) for financial year 2018. Net Sales Cost of Sales Accounts Receivable
Consider the following table that contains selected financial data for Coca Cola Amatil (CCL) for financial year 2018.
Net
Sales
Cost of Sales
Accounts Receivable
Invent.
Accounts Payable
Curr.
Ass.
Curr.
Lia.
CCL
4,764
2,964
995
626
597
2,815
1,643
Using the data contained in the table,(a)calculate the cash conversion cycles for CCL in 2018 (Show all your calculations).(b)Please interpret JBH CCC in 2018.
2.If the Australian market risk premium is 9%, the Australian Treasury Notes 1.5% and the CCL stock has a beta of 0.52, according to the CAPM,(a)what is the expected return for this stock?(b)What is the market return?(c)According to CCL's beta how would you define this share?
3.The table below illustrates risk and return numbers for different asset classes. Which asset class has the best risk/return trade off among Fixed Income, Commodities and REITs? Explain why.
4.Assume that you bought the CCL shares for $9.56 on the 19 December 2018 and you sold them on the 18 December 2019 for $7.82.(a)What would be the 1 Year Holding Period Return?(b)If you owned 1000 shares of CCL what would have been your capital gain/loss?
5.Suppose you want to have $20,000 in ten years.
(a)How much would you have to deposit today in an account that pays 12% interest compounded annually?
(b)How much would you have to deposit if the interest is compounded quarterly?
(c)As an investor would you prefer the annual or quarterly compounding? Explain why.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started