+1-817-968-5551
+61-488-839-671
+44-7480-542904About Expert
Key Topics
Requirement
Principles of Finance
Solution
Corporate financial decisions
School versus work
-
b. The advantage of selling a combination of bonds and stocks includes that the portfolio will be diversified and the risk can be hedged which helps to generate higher revenue within a particular time period. The disadvantage of selling both the bonds and stocks includes that the transaction cost is very high because both the securities have different selling costs of the transaction (Bodie et al., 2014).
-
c. The best solution is to sell the coupon for $121,250 which will cater the school fees ($100,000), and the remaining amount ($21,250) will be reinvested through buying the shares on the basis of price trend which helps to generate higher returns.
-
d. The sources of income are three, namely, job's income, dividends and coupon stock. So the dividend will be received yearly, and the coupon stock will also provide the income after selling the stock, but the job income is a regular monthly income which helps to generate a sustainable amount of income. The selling of 50% stock is $50,000, selling of coupon stock is $121,250, but the income is $25,000*12 which is 300,000 yearly. The salary is assumed.
Why be confused about your assignments when you can get professional and instant finance dissertation help from Allassignmenthelp.com and solve all of your assignment problems? Our website's experts are always available to assist you with financial management assignments help. With the help of our personal finance homework help, you can get high grades on your assignment.
Bonus vs. Stock
-
a. The bonus has a value of $5,000, and the share option is worth $50 per share which is $5,000 for 100 shares. So the best choice is to accept the shares.
-
b. The advantage of selecting the shares includes that the share price are increased, and accrued dividends are also increased. The disadvantages of selecting the shares option include that the performance of the stock is low (Berk et al., 2013). The advantage of the bonus is that the amount can be invested for the long term and the disadvantage is that the amount is fixed and there is no other income in the future.
-
c. The obtaining of shares is more profitable than the bonus because the share price and accumulated dividend increase in the future but the bonus amount will remain fixed. For example, the bonus is $5,000 and share price is $50 per share than the share price is selected due to the increase in the share price.
Compliance
-
a. The sale of unregistered shares is the area in which the concentration is on the secondary market. The gaining of interest in this type of securities increases the level of cost to the shareholders through collective investment which also increases the risk to the fund manager according to the Financial Regulatory Authority.
-
b. As the financial manager, the following information needs to comply:
1. Regulation fair disclosure
The disclosure allows t release the financial information of the company to the investors as well as the public (Campbell et al., 2016).
2. Interim report
The report is filed at the time of subsequent amendments in the business are required.
3. Proxy report
It is the report which is prepared before the annual meeting, and it comprises of the topics discussed in the meeting.
4. Annual report
It is prepared for the year ending, and it comprises of affluence of information related to the company.
5. Insider trading
It is done when the people are associated with the organisation in order to purchase and sell the shares of the company.
Place Order For A Top Grade Assignment Now
We have some amazing discount offers running for the students
Place Your OrderReferences
-
Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments, 10e. McGraw-Hill Education.
-
Berk, J., DeMarzo, P., Harford, J., Ford, G., Mollica, V., & Finch, N. (2013). Fundamentals of corporate finance. Pearson Higher Education AU.
-
Campbell, J. L., Twedt, B. J., & Whipple, B. C. (2016). Did Regulation Fair Disclosure Prevent Selective Disclosure? Direct Evidence from Intraday Volume and Returns.
Give your grades a boost
Just share your requirements and get customized solutions on time.
-
1,168,768 Orders
-
4.9/5 Overall Rating
-
5,052 Experts
