We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution
+ Link For Past Papers, Solved MCQs, Short Notes & More
Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion
How to Add New Discussion in Study Group ? Step By Step Guide Click Here.
SEMESTER Fall 2015
Assignment No. 1
Due Date: 9-Dec-2015 Marks: 25
Here is Assignment # 01 for your course of FIN722. It will provide you an opportunity to get yourself
prepared for your mid-term exam. Before comprehending and attempting the assignment, we would like
you to note some of the following important points:
· This assignment has been designed to enhance and assess your financial knowledge so it is advisable
to put your genuine efforts towards its attempt. You may, however, consult your study resources or
to anyone who has requisite financial expertise but the solution should be prepared wholly and solely
· Always remember that copied/cheated solutions not only earn you low marks but also spoil your
knowledge. So, keep yourself at a safe distance from ready-made and substandard solutions.
· Read the assignment question twice, thrice or even more times in order to comprehend it in its true
spirit before preparing the solution. Believe it that you are capable enough to prepare the solution by
yourself so just give it a try.
Topic: Securities Valuation
Learning Objective: Purpose of this graded activity is to provide understanding that how different
securities are evaluated.
CASE # 1:
Smart manufactures and Style manufacturers are manufacturers of sports goods. Both companies have
issued bonds, each of which has par value of Rs. 1,000. Both bond issues have similar year to maturity of 5
years. However, coupon rate offered on Smart’s bonds is 12% paid quarterly while Style’s bond is offering
coupon rate of 6% quarterly.
a) Analyze which company’s bond is more sensitive to price change and why?
b) Calculate present value of each bond if market required rate of return on both bond issues is 8%.
CASE # 2:
Stemmer Limited deals in business of garments. Company has currently paid a dividend of Rs. 2 per share
to its shareholders. Company has decided to pay dividend up to year 5 at growth rate of 15%. After that
growth rate will decrease and company will start to pay dividend at 5%.
What will be the current value of Stemmer’ stock if investor’s required rate of return is 10%? Provide appropriate detailed working.
Learning Outcome: After attempting assignment, students will be able to valuate bonds and common
Please read the following instructions carefully before preparing the assignment solution:
· Do prepare the solution after completely reading and understanding the questions.
Put your genuine efforts in order to understand the concepts and calculations thoroughly.
Provide complete calculations for all parts of the questions.
Only in the case of Assignment, 24 hours extra / grace period after the due date is usually
available to overcome uploading difficulties which may be faced by the students on last date. This
extra time should only be used to meet the emergencies and above mentioned due dates should
always be treated as final to avoid any inconvenience.
Other Important Instructions:
Read the following instructions carefully before attempting the assignment solution.
· Make sure to upload the solution file before the due date on VULMS.
· Any submission made via email after the due date will not be accepted.
Rules for Marking:
Please note that your assignment will not be graded or graded as Zero (0) if:
· If plagiarism found more than 20%, your assignment will be marked zero because university
is following Zero Tolerance Policy for plagiarism. Plagiarism reports will be attached with your
assignment solution files to give you exact results of copied data.
· It has been submitted after due date
· The file you uploaded does not open or is corrupt
· It is cheated or copied from other students, internet, books, journals etc.
· Your answers must be concise and to the point. Avoid providing unnecessary lengthy
· Use the font style “Times New Roman or Arial” and font size “12”.
· It is advised to compose your document preferably in MS-Word.
· Use black and blue font colors only.
Note related to load shedding: Please be proactive
As you know that semester activities have started and load shedding problem is also prevailing in
our country now a days. Keeping in view the fact, It is requested to all of you to manage to post
your activities as early as possible and don’t wait for the due date. For your convenience activity
schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be
entertained after due date of assignments or GDBs.
.+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)
+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)
Please Discuss here about this assignment.Thanks
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.
FIN722 complete solution 2015
idea solution u can easily solve your assigment
your calculation is wrong in bold form
Present value= c x F x 1-(1+r)-t /r + F/ (1+r)t
= 3% x 1,000 x 1-(1+2%)-20 /2% + 1,000/ (1+2%)20
= 0.03 x 1000 X 1- (1+ 0.02)-20 /0.02 + 1,000/(1+ 0.02)-20
= 30 x 1- (1.02)-20 /0.02 + 1,000/ (1.02)20
= 30 x 1- 0.673/0.02 + 1,000/1.486
=30 x 0.0327/0.02 +1,000/1.486
= 9.81/0.02 + 1,000/1.486
= 1498.5 + 672.9= 2171.4
right solution is
first we have to calculate PVAF
i.e. c * [(1-1/(1+r)^t]/r + Face v/(1+r)t
(c * 490.54) + 672.97
Answer should be
bhai ge Assignmnet ha full ap k pass
Can anybody please upload assignment. I am not able to solve it properly. And time is short
bro discuss here problem
solution will be find out through discussion
PV of Smart Bonds = 1163
PV of Style Bonds = 918
Kindly tell me my answer is correct or not
smart = 1165.4
Style = 919.4
PV @ GROWTH RATE 15% for 5 years
and at g=5%