FIN2101 BUSINESS FINANCE CONTINUOUS ASSESSMENT 1 INDIVIDUAL ASSIGNMENT: 50 marks Read the instructions in your course documents, in your student portal, Course Outline, CA outline and your portal carefully. You will be penalized with marks deduction if the instructions are not strictly followed. Students are to upload their assignment by the due date through their student portal account. After the due date, students' submissions will not be entertained. Students should keep a copy of assignment submitted. The submitted report must show evidence that this is students' own work. Write your FULL Name AND your IC/Passport number as in the register on the answer cript. Please be reminded that plagiarism and collusion are serious offences, and all cases will be referred to the administration. Grades will be withheld until investigations are completed if Deadline: 21 oct 2022, 11.59am Penalty Marks for Late Submission of Assignment Within 24 hours: 20% to be deducted from total marks More than 24 hours: submission will be graded zero CA Submission CAs must be submitted online via student portal. Please read through instructions in your student portal and CA outline carefully before submitting. If you have further queries, please read the FAQ. If, after reading the FAQ, you need assistance on submission, please contact the team directly via email to itsd_simge@sim.edu.sg or call 62489393 0ption 4. For non-submission issues please email he10@sim.edu.sg. Please email with your student portal accounts. Email from other addresses will not be entertained. If issues raised are covered, you will be directed to read through instruction Please take time to read thoroughly before raising issues. FIN2101 BUSINESS FINANCE Question 1 Capital budgeting and capital raising are two major duties of the financial manager within the firm. Explain the differences between these duties for the financial manager. (4 marks) Question 2 For a firm, agency problem arises for the separation of management and ownership. Identify and explain THREE methods to minimise agency costs. (6 marks) Question 3 Explain the difference(s) between time series and cross-sectional analysis. Discuss which ratio analysis would you apply to determine compare a firm's performance with the industry over time. (6 marks) Question 4 Discuss TWO limitations of financial ratio analysis. You are to provide examples in your answer. (4 marks) Question 5 AIRFLOW Tech Ltd is considering an investment with an amount of $2 million (comprising $1 million equity and $1 million debt) with a weighted average cost of capital of 10%. The investment is expected to generate a NOPAT of $300,000. The company's tax rate is 20%. (i) Calculate the Economic value added (EVA) for the investment? (3 marks) (ii) Should the firm accept or reject the investment? Explain your reason(s). (2 marks) FIN2101 BUSINESS FINANCE CONTINUOUS ASSESSMENT 1 INDIVIDUAL ASSIGNMENT: 50 marks Read the instructions in your course documents, in your student portal, Course Outline, CA outline and your portal carefully. You will be penalized with marks deduction if the instructions are not strictly followed. Students are to upload their assignment by the due date through their student portal account. After the due date, students' submissions will not be entertained. Students should keep a copy of assignment submitted. The submitted report must show evidence that this is students' own work. Write your FULL Name AND your IC/Passport number as in the register on the answer cript. Please be reminded that plagiarism and collusion are serious offences, and all cases will be referred to the administration. Grades will be withheld until investigations are completed if Deadline: 21 oct 2022, 11.59am Penalty Marks for Late Submission of Assignment Within 24 hours: 20% to be deducted from total marks More than 24 hours: submission will be graded zero CA Submission CAs must be submitted online via student portal. Please read through instructions in your student portal and CA outline carefully before submitting. If you have further queries, please read the FAQ. If, after reading the FAQ, you need assistance on submission, please contact the team directly via email to itsd_simge@sim.edu.sg or call 62489393 0ption 4. For non-submission issues please email he10@sim.edu.sg. Please email with your student portal accounts. Email from other addresses will not be entertained. If issues raised are covered, you will be directed to read through instruction Please take time to read thoroughly before raising issues. FIN2101 BUSINESS FINANCE Question 1 Capital budgeting and capital raising are two major duties of the financial manager within the firm. Explain the differences between these duties for the financial manager. (4 marks) Question 2 For a firm, agency problem arises for the separation of management and ownership. Identify and explain THREE methods to minimise agency costs. (6 marks) Question 3 Explain the difference(s) between time series and cross-sectional analysis. Discuss which ratio analysis would you apply to determine compare a firm's performance with the industry over time. (6 marks) Question 4 Discuss TWO limitations of financial ratio analysis. You are to provide examples in your answer. (4 marks) Question 5 AIRFLOW Tech Ltd is considering an investment with an amount of $2 million (comprising $1 million equity and $1 million debt) with a weighted average cost of capital of 10%. The investment is expected to generate a NOPAT of $300,000. The company's tax rate is 20%. (i) Calculate the Economic value added (EVA) for the investment? (3 marks) (ii) Should the firm accept or reject the investment? Explain your reason(s). (2 marks)
