FIN B280F Newcastle University Introduction to Financial Management Questions

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Question 1 (30 Marks)
Company Marvel has been in the filmmaking industry for quite a while and is specialized in making sci-fi and superhero movies. Due to recent advancement of digital technology and 5G internet, the company decides to set up a subsidiary company (Company Cyrus), which will specialize to focus on the development of filmmaking and internet related technology. This will further improve the company’s comparative advantage in filmmaking industry and capture the latest trend and taste in the younger generation per comment from its CEO.
The total capital requirement of Company Cyrus will be at $30 million in total in market value term in the beginning. Company Marvel decides to finance Company Cyrus’ operations with 40 percent corporate bond, 20 percent of preferred stock and 40 percent common stock. Company Marvel’s current net income is $18 million with a dividend payout ratio of 30%.
Company Marvel currently has outstanding corporate bond of its own for $1 million notional amount in aggregate. The annual coupon rate of this bond is 8% and it is paid annually. The bond still has 5 years to maturity. The bond is currently traded in the bond market for $924,184 in aggregate total.
The preferred stock issued by Company Marvel have a perpetuity annual dividend payment of 6% for every $100 notional per share. Preferred stock is currently traded in the market for $75 per share.
Company Marvel’s common stock is currently traded at $60 per share, and its current dividend payout is $5 per share. The dividend is also expected to grow at a constant rate of 10% a year forever. The flotation cost of external equity, if it is issued, is 5% of the dollar amount issued. Assume the tax rate is 25%. (Please show your calculations in all below question from (a) to (e))
Required:
a What is Company Marvel’s cost of common stock?
b What is Company Marvel’s cost of debt?
c What is Company Marvel’s cost of preferred stock?
(d) Does Company Marvel need to issue new common stock or not and why? (5 marks)
(e) Estimate Company Cyrus’ Weighted Average Cost of Capital (WACC). (10 marks)
Question 2 (70 Marks) P
You have learned five capital budgeting techniques(NPV IRR Payback Period Discounted Payback Period and Profitability Index) in this course. Describe the details and analyze the limitations of each of these capital budgeting techniques. Also, other than the capital budgeting technique itself, please provide your own views regarding what other factors which potentially may cause the inaccuracy of capital budgeting results in reality. You need to provide real life examples to illustrate your arguments. (not more than 700 words in total)

 
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Newcastle University Determinants Affecting Corporate Capital Structure Paper

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Question Description

I don’t understand this Economics question and need help to study.
 
About Part 2
a: In terms of stock repurchase, what is buy_back and its impact on stocks
b:about buyback blackout periods, including （On the one hand, insider trading should be avoided ,companies often do not repurchase shares in the weeks before reporting earnings to
avoid accusations of insider trading.，On the other hand, the policy stipulates. However, assessing the impact of the buyback-blackout period is challenging because there is not a federally mandated blackout period. Companies are also still able to
repurchase shares through a SEC rule allowing trading on a pre-set schedule. That means repurchases can still occur during a normal blackout period, creating uncertainty among investors about the potential impact of blackout periods on stock returns.）
The definition of the lock up period of stock repurchase in my data is one month before the release date of quarterly profit. Please find relevant literature to support my research. The dependent variable is defined in this way
c. Through the literature, we find that the three dependent variables share return is positively correlated or negatively correlated with the lock up period, whether the share return volatility is positively or negatively correlated with the lock up period, and whether the trading volume is positively or negatively correlated with the lock up period is that you are looking for literature on the impact of stock repurchase on stock returns, stock return volatility, and trading volume, Then, the effect of the lock up period of stock repurchase is opposite. Based on this, we establish hypothesis, test hypothesis with data, and finally draw a conclusion that it is such a process.
Establish hypotheis 1: hypotheis 2: hypotheis 3: Hypothesis
Note: in terms of my data, the regression conclusion of the three dependent variables is that the stock repurchase is positively correlated with their three dependent variables, so on the contrary, the lock up period of stock repurchase is negatively correlated with their three dependent variables. The hypothesis and literature rely on my data conclusion
 
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Newcastle University Education A Critique of an Educational Issue in China Paper

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Question Description

I’m working on a Writing exercise and need support.
 
Assignment 5— Individual Written paper: A Critique of an Educational Issue in China
Main contents: contemporary education issues in China that you are interested in or have an impact on yourequirement:
A. Format requirements: paper format, using academic language, avoid vernacular. When reading the literature, pay special attention to sentence patterns, terms, formats, etc
B. Literature requirements: no less than 10 articles, published in the past ten years, to facilitate teachers to trace the source, in order to verify the reference.
C. Submission requirements: check the duplicate with trunitin before submitting in the assignment drop box.
D. Number of words: 1500 words, the following content is contained in 1500 words, with emphasis!!!!
Cover: name, ID, title and 4 key wordsIntroduction: To summarize the methods you use, you can also briefly describe the background of the topic you are talking aboutSummarize the main contents of the thesisPersonal background: briefly describe the relationship between your current teaching work and your selected topic, and explain why you are interested in this topic. So don’t ask if you have to discuss education topics, whether the topic must be related to your work. It’s all will! Must! Yes! I am a teacher who gives the lessons about fine arts and drawing, so please choose the topic from this perspective.
The discussion of key points and your evaluation: these two parts are the reproduction of the presentation. We must list out the arguments. Even our own views also need to be supported by evidence. We should be reasonable, not just opinions.Conclusion: summary and suggestions should arouse readers’ thinking, not just repeat the previous views.References: only the parts cited in the paper are listed. Don’t list those that you have read but have not introduced into the paper.TIPS：Use an academic style of writing including an introduction and conclusion. The introduction should outline the approach to be taken and the conclusion summarizes the argument and leaves the reader with something to think about. Paragraphs should follow sequentially with the first sentence of each paragraph indicating the main theme of theparagraph to provide the reader with an idea of the author’s intention or to act as an introduction. Writing should be succinct and coherent, synthesizing the reading material with personal interpretation.
 
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BFC 5130 Newcastle University Deutsche Bank Banking and Finance Case Studies

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Question Description

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?
 
Please read the materials and the case to be studied, and answering the questions , need some reference intext.
PLAGIARISM RATE below 10% in turnitin , needs report
1. Deutsche Bank has recently had some negative performance results. Please outline some of these including reduced earnings and stock price results. It may assist you to provide some graphics/figures to aid in your analysis. Please remember to include headings, figure numbers and data sources.
2. Deutsche Bank has been involved in a number of financial scandals. Outline at least 3 of these.
3. Deutsche Bank has operations around the world. Please describe the structure of the bank. It may help to use any graphics from a recent annual report or other sources.
4. Geographically where does Deutsche Bank invest? How does this vary by industry or segment types?
5. What are the future prospects of Deutsche Bank in your opinion with their operations globally, and also focusing specifically within Germany? Does fallout from COVID‐19 play a role?
 
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