Question 7 a. What are the main differences between Finance Companies, Credit Unions and Building Societies? (6 marks) b. Bobby sets aside $1500/month as a savings nest for 20 years. His bank offers him an investment account with 6% annual interest. What would be his balance at the end of 20 years? (4 marks) c. Tammy Enterprises Ltd will give $5 dividend next year. They have undertaken a scenario planning exercise and anticipate various growth trajectories. What is the price of their Share under the following scenarios? i. ii. iii. Constant growth of 5% and required investor return of 8%. Constant growth of 4% and required investor return of 6%. $5 dividend forever and required investor return of 5% (2 marks) (2 marks) (1 mark) Question 8 a) David and Diana are a couple in their 60's and seek stability and regular income to continue to enjoy their retired life. If you had a choice to advise them on their investments, what products would you recommend and why? (5 marks) b) Consider a credit card and a debit card i. ii. What are the major differences between the two products? (3 marks) List a few advantages and disadvantages of each product (4 marks) What is a cobranded credit card? Why would 2 firms share the same product? (3 marks) iii. End of Paper