www.vustudents.ning.com

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

# ACC501 Assignment No 02 Spring 2019 Solution & Discussion Due Date: 22-07-2019

ACC501 Assignment No 02 Spring 2019 Solution & Discussion Due Date: 22-07-2019

Views: 1165

### Replies to This Discussion

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

Discussed & be touched with this discussion. After discussion a perfect solution will come in a result at the end.

“How to Join Subject Study Groups & Get Helping Material”

P.S:    Please always try to add the discussion in proper format title like “CS101 Assignment / GDB No 01 Solution & Discussion Due Date: ___________”

Share below link with friends for solution & Discussion. A Single link for help in your education.

http://bit.ly/vucodes

Site Overview | Assignment Solutions | Past Papers |Site Features

SOLUTION Assignment No. 1 (ACC501 - Business Finance) Spring 2019

With Full Details and Explanation.

# SEMESTER SPRING 2019 BUSINESS FINANCE (ACC501) ASSIGNMENT NO. 01 Due Date: JULY 22, 2019

Question # 1
You are working as an investment analyst in a brokerage firm. Currently, one of your clients
visits your office to discuss a proposal regarding purchase of Saleem Corporation’s stock.
The firm has recently paid an annual dividend of Rs.5 per share. The client’s required rate of
return on such kind of stock is 12%. Dividend policy of Saleem Corporation is uncertain and
it may adopt any of the following policy regarding payment of future dividends:
a) The dividend will grow 0% till infinity (2 Marks)
b) The dividend will grow at the steady rate of 6% till infinity (3 Marks)
c) The dividend will grow 8% for each of the next 4 years followed by a constant annual
growth rate of 6% in fifth year to infinity. (10 Marks)

Required:
Calculate the value of common stock of Saleem Corporation under each of the above given
assumptions.

Question # 2 (5 Marks)
Elite Corporation has the following mutually exclusive projects.

Years                    Project A                 Project B
0                            -100,000                -100,000
1                              60,000                    50,000
2                             35,000                    40,000
3                              38,000                     35,000
4                                17,000                   25,000

Elite Corporation is currently using the NPV technique to rank such kind of projects. You are required to suggest which project is more appropriate to undertake by considering the appropriate discount rate as 15 percent.

Special Note: Complete calculations are required for each question (1) and (2).
Incomplete calculations will result in loss of marks.

ACC501 Assignment 1 Solution Spring 2019

ACC501 Assignment 1 Solution Spring 2019

ACC501 Solution Assignment No 02 Spring 2019

ACC501 Solution Assignment No 02 Spring 2019

# ACC501 Assignment 2 2019 with Solution File

1

2

3

4

5

## VIP Member Badge & Others

------------------------------------

## Latest Activity

### story

1 minute ago
17 minutes ago
21 minutes ago
21 minutes ago
Mani Siddiqui replied to 刀のの尺's discussion Aԃαƙαɾι
26 minutes ago
Mani Siddiqui liked 刀のの尺's discussion Sԋαყαɾι ιʂԋϙ ԋαι ɱҽɾα
30 minutes ago
30 minutes ago
42 minutes ago