” 写作FIN2101编程、 辅导C++程序Full-Time DiplomaBUSINESS FINANCE (FIN2101)CONTINUOUS ASSESSMENT 1TERM OF JANUARY 2021 MARCH 2021Individual Assignment (30%)Total marks: 50 marksInstructions:1. Type out your assignment in Word document and submit it through the D2L by thedeadline.2. In your cover page, include your full name and ID number.3. Answer ALL questions.4. Show ALL workings.5. Please be reminded That plagiarism and collusion are serious offences, and all cases willbe referred to the administration. Grades will be withheld until investigations arecompleted if the submission is suspected of plagiarism or collusion.Question 1Explain what business ethics is. Discuss whether having an ethics programme in the firm maybenefit the organisation and its shareholders.(6 marks)Question 2a) KM Co. is considering an investment. The project is expected to be financed by$2,000,000 of bank loans and $3,000,000 of common equity. It is known that the firmsweighted average cost of Capital (WACC) is 9.8% and the investment is expected togenerate a net operating profit after tax (NOPAT) of $480,000. The companys tax rateis 30%.(i) What is the projects Economic Value Added (EVA)?(2 marks)(ii) Should the firm accept or reject the investment? Explain your reason(s).(2 marks)2Question 3The balance sheet and income statement for DRM Pte Ltd are shown below:a) You are given selected financial ratios of DRM Pte Ltd for 2018 and 2019 in the tablebelow. Compute the corresponding ratios for 2020. Round your answers to two decimalplaces.(5 marks)b) Using the information Provided in the table and your answers in part (a), perform a timeseriesanalysis for DRM Pte Ltd in the following areas:i) Liquidity.ii) Profitability.(6 marks)DRM Pte LtdBalance SheetAs at 31 Dec 2020$(000)Cash 50Accounts Receivable 300Inventories 300Total Current Assets 650Net Fixed Assets 750Total Assets 1,400Accounts Payable 300Long-Term Debt 1,000Total Liabilities 1,300Common Stockholders Equity 100Total Liabilities StockholdersEquity 1,400DRM Pte LtdIncome StatementFor the Year Ended 31 Dec 2020$(000)Sales 1,000Less : Cost of Goods Sold 300Gross Profit 700Less : Operating Expenses 400Operating Profits 300Less : Interest Expenses 180Profit Before Taxes 120Less : Taxes (20%) 24Profit After Taxes 96Ratios DRM Pte Ltd2018DRM Pte Ltd2019DRM Pte Ltd2020Current Ratio 1.42 1.62Quick Ratio 0.52 0.64Gross Profit Margin 0.70 0.70Operating Profit Margin 0.19 0.24Net Profit Margin 0.13 0.123c) Discuss how Debt Ratio and Times Interest Earned ratio may be used by the managementto better manage the firm.(4 marks)Question 4QRS Corporation Forecasted its total funding requirements for the coming year as shown inthe table below :Month Total funding requirements(S$)January 40,000February 60,000March 110,000April 40,000May 80,000June 70,000July 140,000August 40,000September 60,000October 70,000November 50,000December 60,000QRS Corporation was informed by its bank that short-term loans cost 6.8%p.a. and long-termloans cost 8.2%p.a.. Calculate the total cost (to 2 decimal places) of each of the followingstrategy:a) An aggressive funding strategy.(3 marks)b) A conservative funding strategy.(3 marks)4Question 5As a new finance Manager of ST Pte Ltd, you are responsible in managing the firmsfinancial affairs. Your review of the business cycle reveals that ST Pte Ltds inventorytypically remains with the firm for 20 days before it is sold and requires 30 days for the moniesto be collected from the customers. On average, the firm takes 40 days to pay its suppliers.a) Compute the cash conversion cycle (CCC) of ST Pte Ltd. Comment on your answer.(3 marks)b) Should ST Pte Ltd lengthen or shorten its CCC? Why?(3 marks)c) Suggest TWO ways in which ST Pte Ltd can improve its CCC.(3 marks)Question 6Company ABC manufactures stoneware. Supplier LMN provides raw materials to CompanyABC under the credit terms of 3/15 net 60.a) Determine the cost of giving up the cash discount from Supplier LMN. Your answershould be in percentage and rounded to two 2 decimal places.(3 marks)b) Bank XYZ offers short-term financing to Company ABC at a premium of 4% abovePRIME. If the current PRIME rate is 8%p.a., what is the cost of bank borrowing forCompany ABC? Your answer should be in percentage and rounded to two 2 decimalplaces.(3 marks)c) Given your Answers in (a) and (b), should Company ABC take up the cash discount fromSupplier LMN? If the invoice amount is $120,000, determine when and how much shouldCompany ABC pay.(4 marks)– END OF ASSIGNMENT –如有需要，请加QQ：99515681 或WX：codehelp
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