Archive for the ‘interest rate’ tag
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Has any one had dealings with Paragon Finance and their never ending interest rate rises?
How can they justify interest rate rises every month whether the Bank of England rate goes up or not.
these are some finance questions.i would really be thankful if any helps me.?
1.Company A’ share price is currently £2.50. If it wants to raise £5,000,000 via a Rights Issue at a 20% discount and the issues costs are £250,000, how many shares does the company need to issue?
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2.If the company has 10,000,000 shares in issue at the moment, what will be the ex-rights price?
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3.And what is the value of the rights?
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4.If a company has 4,000,000 shares outstanding and it uses cumulative voting procedures, how many shares do you need to have in order to ensure your candidate gets a seat on the board, if 6 directors are being elected?
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5.Billingsgate has 2 million shares outstanding with a current price of £1.5 and it has debt of £1 million. If the shareholders required rate of return is 15%, the interest rate on the loan 7% and the tax rate 30%, what is the company’s WACC?
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6.What will be the new WACC if the company decides to issue 250,000 new shares at market value and use it to repay existing debt?
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7.What is the clean price of a 6% bond with semi-annual coupons, currently trading at £120, if the next coupon is paid on the 7th of January? And what is the dirty price of an 8% bond with semi-annual coupons, with a current clean price of £120, if the next coupon is paid on the 7th of February?
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8.You are given the following information regarding an existing plc:
Sales for the next three quarters are 240, 300 and 360 respectively, and credit period given of 45 days;
Purchases equal to 35% of following quarter’s sales and suppliers give 30 days credit;
Balances at the end of previous quarter of 100 in receivables and 40 in payables;
Additional quarterly payments of 100
Calculate the net cash flow for the next two quarters
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9.The board of Mystery plc has decided that it requires a minimum cash level of £150,000. If the cost of replenishing its cash balance is £500, the standard deviation of the daily cash flows £1,500 and the annual interest rate 9%, what should be its Target Cash Balance? And the Maximum Cash level? And the resulting average cash balance?
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10.What is the optimum cash level for a company that uses £5,000,000 per year, if the cost to replenish its cash level is £250 and the interest rate on its investments is 7.5%?
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Where can I find a mortgage company that will let me finance the entire amount the home is worth?
I'm buying a ,000 house according to tax records for ,000, but want to get ,000 because it needs repairs. It shouldn't really matter to the mortgage company how much I paid for it, because in the (extremely unlikely) event that my house was repossessed, they'd have a ,000 house to sell. Especially since I'm investing the extra money into it and doing the work myself. It would definately be worth well over 0,000 when I'm finished. I don't want a home equity loan because I want just one payment with just one interest rate. My credit score is 702. I should be able to get a loan.
