Please find my assignment below:
Question 1
The recent Fed Reserve interest rate hike witnessed growth stocks pull back in
the significantly in the stock market compared to value stocks. Is there a
correlation between bond yield curves and stock prices? Discuss.
Question 2
Review the Financial Statements of Singapore Airlines and EasyJet (See
appendix). Calculate and compare relevant profitability, liquidity, operational
efficiency, and leverage ratios. Provide your analysis on which of these airlines
is better suited to weather a six-month pandemic grounding of all flights.
Question 3
Discuss agency theory in the context of the industry you work within. Further,
make suggestions on how alignment of interests could be achieved between the
relevant stakeholders in your company.
Question 4
Answer both of the following questions.
(a) Dave bought a townhouse in downtown Dubai. He estimates that the
flooring will have to be renewed at a cost of $25,000 after 20 years. To
cover these costs, he intends to save an equal amount of money at the end
of each year, earning 6% annual interest rate. How much would he have to
put aside each year towards the above expense?
(b)Ayman has just participated in the Emirates Draw and won $20,000. He
wants to finance the future study of his newly born son and invests this
money in a fund with a maturity of 18 years offering a promising yearly
return of 6%. What is the amount available on the 18th birthday of his son?
Question 5
Discuss what is capital structure of a firm. Illustrate with examples how increased
leverage could work both in favour and against the firm.