Question
Question 2 [25 Marks] Examine any three factors that influences a companys choice of a particular type of debt finance 7 marks Explain three advantages
Question 2 [25 Marks] Examine any three factors that influences a companys choice of a particular type of debt finance 7 marks Explain three advantages and disadvantages of debt finance as a source of long-term finance 7 marks In anticipation of his retirement in 12 years time, a business executive has decided to set aside 50,000 from his profits at the beginning of every year in a retirement fund. How much will he have in the account if he earns 9.5% interest p.a.? 5 marks
A tenant offers to sign a lease paying a rent of 3,000 per quarter in arrears for 5 years. What is the present value of the lease if the discount rate is 10 p.a%. 4 marks
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