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Onestion 1 (10 Marks) a) Investment decisions are crucial to increase the value of the business. Discuss? (2 Marks) When an investor decides on venturing

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Onestion 1 (10 Marks) a) Investment decisions are crucial to increase the value of the business. Discuss? (2 Marks) When an investor decides on venturing into a business, they always have to first carry out research on the the investment opportunity so as to enable them make the best decision concerning this investment. This way the investor s able to know all the requirements of starting up the business, howhe will finance it and the means of him attaining a break even in good time. Thus resulting to the business making profitshence the business value keeps on raising. b) You have saved $ 2,800 from your part-time job and wish to save the money in a saving account. Your local bank is offering 4.75 percent compounded daily on savings accounts. If you deposit $2,800 today, how much will you have in two years? (2 Marks) c) Expert Ltd.'s management has decided to raise their capital 35% from debt and the remaining from the equity sources. According to the recent market data the cost of debt and equity is 7% and 13% respectively. The tax rate is 20%. Calculate Expert Itd.'s WACC. (2 Marks) Click or tap here to enter text. d) Active supply chain issued their preference shares in mid-January 2021 and one share was traded for $65. The face value of the same share was $200, and the dividend was $6.40. In 2020 the tax rate was 28% and now it is 31%. what is the Active supply chain's cost of preference shares? (2 Marks) e) The market price of a bond will be determined by the coupon rate and the yield to maturity (YTM). Explain. 2 Marzo

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