What are 3 forms of business organizations? Give an advantage and disadvantage of each.

OO vodafone AU 4G 11:32 am 91% if ee.edu.au 1. Is the profit the main goal of financial managers? Explain. 2. What are 3 forms of business organizations? Give an advantage and disadvantage of each. 3. Explain different types of financial markets. 4. What is total risk? Explain. 5. What is diversification and what do you achieve through diversification. 6. Who are agents and principal? Explain agency problem. 7. Find your fortnightly payment on a loan of $1,500,000 at the rate of 8% p.a compounded fortnightly, duration of the loan is 25 years. 8. Find the weekly payment on a loan of $1, 500,000 at the rate of 8% p.a compounded weekly duration of the loan is 25 years. 9. What is present value of an annuity of $222 a year for 25 years at the rate of 9% p.a.? 10. What is present value of an annuity of $222 a year for 25 years at the rate of 9% p.a with the first payment occurring at the beginning of the period? 11. What is future value of an annuity of $555 a year for 17 years at the rate of 12% p.a.? 12. What is future value of an annuity of $555 a year (17 payment in total) for 17 years at the rate of 12% p.a with the first payment occurring at the beginning of the period? 13. Which of the following project do you prefer? a. Project A cost 150,000 with 6 years life and cash inflow of $50,000 a year, the discount rate is 10% b. Project B cost $200,000 with 9 years life and cash inflow of $35,000 a year, the discount rate is 10%. 14. There are two mutually exclusive projects A and B with the following information; Based on payback period which project do you prefer? Based on NPV which project do you prefer? Based on Pl which project do you prefer? The cost of both projects is $35,000 Project A has cash inflow of $10,000, $11,000, 12,000 and 15,000 in years 1, 2, 3 and 4 respectively. Project B has cash inflow of $12,000 a year for 4 years. Required rate of return is 7% p.a 15. Use the information in the following table to answer the following questions. State of economy Probability of SOE Return A Return B Boom 0.10 0.25 0.20 Normal 0.50 0.15 0.12 Recession 0.25 0.05 -002 Depression 0.15 -015 -008 a. What is expected return of shares A and B? b. What is standard deviation of shares A and B? c. What is expected return of a portfolio of A and B with 70% investment on share A and remainder on B? d. What is Beta of portfolio of A and B, Beta Ais equal to beta of market and beta of B is 0.85? e. What is CV ofA and B