3. Suppose the portfolio of a large institutional investor ‘Animal has a beta of 1.25, and the standard deviation of the rate of return on its portfolio is 15 percent and its expected rate of return is 15 percent. The portfolio of another institutional investor Beast’ has a beta of 0.75. The market portfolio may be expressed as a portfolio comprising the portfolios of Animal and Beast. Suppose there is a firm called Cunning corporation’, whose stock’s beta is 2 and it can borrow at the risk free rate, which is 2.5 percent. Cunning’s equity value is £1.5 million and its debt is £1 million. The present value of Cunning’s tax shield is £0.3 million. Assuming that both CAPM and the Modigliani-Miller theorem with corporate taxes hold, answer the following questions. a) What is the expected return on the market portfolio? [5 marks] b) What is the standard deviation of the rate of return on Beast’s portfolio? [5 marks] c) What is the weight attached to Beast if we express the market portfolio as a portfolio [5 marks] [5 marks] Total 20 marks] comprising the portfolios of Animal and Beast? d) What is the after-tax WACC of Cunning? 2. A firm ‘Kappa Industries’ is a very young business, which is growing rapidly and to which intangible assets are very important. In contrast, another firm ‘Gorgeous Food’, whose business is profitable and stable, but has limited growth opportunities and most of its assets are tangible. With this setup, answer the following questions. a) Assuming that the predictions of the pecking order theory hold, which firm should have [20 marks] b) Assuming that the predictions of the trade-off theory hold, which firm should have a [20 marks] a higher payout ratio? Explain concisely why. higher debt-equity ratio? Explain concisely why.

Attachments:

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3. Using the IS-LM graphs, show that a decrease in government spending will cause output and interest rates to fall. 4. Using the IS-LM graphs, show what will happen to output and the interest rates if there is a balanced budget increase in spending—that is higher spending financed by higher taxes. 5. Using IS-LM graphs, predict what will happen to output and the interest rate if the central bank reduces the money supply.

 

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33) This morning, you borrowed $13,400 at a 6.9 percent annual interest rate. You are to repay the loan principal plus all of the loan interest in one lump sum three years from
today. How much will you have to repay?

A) $16,369.59

B) $16,441.20

C) $15,324.60

D) $17,808.13

E) $15,313.00

 

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31) Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $250 a
month for the next 20 years. What is the rate of return on this investment?

A) 2.47 percent

B) 3.75 percent

C) 1.88 percent

D) 3.67 percent

E) 2.45 percent

 

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301061: Construction Work Safety- Australian Construction Industry- Safety Management Assignment

Task:

1. Introduction
This unit describes the context of safety management in the Australian construction industry. The topics covered
include: the poor long-term record in the construction industry on Workplace Health and Safety (WHS); strategies
for improving the industry performance; introduction to hazard identification and risk management; accident
causation theories; and individual safety awareness and personal responsibility. There are 3 assessment items in this
unit (see the Table below).

This is an individual assignment. Students are required to conduct a case study on a significant workplace safety issue (e.g., work related injuries or fatalities; incidents or near misses; implementation of innovative approach to
improve safety; etc.). The specific tasks include:

3.1 Case selection and description
You are required to (1) identify a suitable case in the context of workplace safety for analysis.

You may consider finding a case from the following sources:
1. Your own or others life/work experience;
2. Observations;
3. Incidents records of workplace;
4. Interviews with employers or injured workers;
5. Books;
6. Newspapers;
7. Internet or other sources.

Please consult your tutor if you are not sure whether the case is suitable or not.

3.2 Describe the case in detail.
The requirements for the case description include:
1. Suggested length: 500 words
2. Do not include the particulars (e.g., name and address) of involved parties (e.g., injured worker, company and project) unless you derived the case from public sources(e.g., newspaper, Internet, books, etc).
3. Provide as much detail as possible.

3.3 Case Analysis
Once the case is confirmed, you are required to conduct research against the main issue(s) raised in the case. The
following 12 topics are suggested areas of analysis. Please consult your tutor if you wish to conduct research analysis
on topics beyond the below suggested areas.
1) Root causes of accidents
2) Costs of accidents (e.g., costs to employers, society, or injured worker)
3) Safety investments (e.g., costs of accident prevention activities)
4) Designing for safety (eliminate safety risks from designing stage)
5) Responsibilities of stakeholders
6) Barriers to effective safety systems/plans
7) Promoting safety culture/climate
8) Developing safety leadership (for supervisors, project managers, or top managers)
9) Assessing the risks (hazards identification, risk management)
10) Strategies for accident prevention
11) Safety training (competency, needs, contents, delivery, transfer, evaluation, etc)
12) Workers involvement in safety initiatives

You will need to select one or more topics from the above list (or work out your own topic(s) if approved by your tutor) and conduct a research analysis based on your case.

 

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