1. Highlight five reasons for government’s involvement in business activities. (5mks) 2Outline five reasons why the government issues licenses to

1. Highlight five reasons for government’s involvement in business activities. (5mks) 2Outline five reasons why the government issues licenses to traders.(5mks)3Outline four functions of commercial attaches.(4mks4Highlight four activities that the government can carry out to promote internal trade.(4mks)5State five ways in which the government can create n enabling environment for businessto thrive.(5mks)6Highlight four demerits of government involvement in business(4mks)7Outline five reasons why the government needs to protect consumers.(5mks)8Outline five government-initiated methods used to protect consumers from producers andbusiness people.(5mks)9Highlight four limitations of consumers-initiated methods in consumer protection.(4mks)10Explain five purpose of public finance.(5mks)11State five sources of public finance(5mks)12Using relevant examples, differentiate reproductive debt from dead-weight debt.(4mks)13Explain the three categories of government expenditure(3mks)14State five principles of public expenditure(5mks)15Outline five reasons why the government imposes taxes.(5mks)16Explain five principles of taxation(5mks)17State five merits of direct taxation18Highlight five demerits of indirect tax.(5mks19Thika traders sells goods at a mark-up of 25%. Stock on 1st January 2015 was sh.40,000and on 31st December 2015 stock was worth sh.600,000. The rate of stock turnover was 5times.Required:Prepare Thika Traders Trading account for the year ended 31st December 2015.(5mks20The following trial balance was extracted from the books of Kipande Traders as at 30thJune 2015(12mks)Kipande TradersTrial BalanceAs at 30th June 2015DrCrPremises1,500,000Debtors and creditors20,00030,000Cash at bank90,000Cash in hand10,000Purchases and sales140,000320,000Stock of goods on 1st July 2014 45,000Discounts6,0002,000Salaries and Wages50,000Commissions8,000Power and lighting12,000Returns15,00019,000Carriage inwards5,400Carriage outwards2,300Capital1,543,700Furniture27,0001,922,700 1,922,700Additional information: stock of goods on 30th June 2015 was worth sh.22,000 Required:Prepare the Trading and Profit and Loss accounts for the year ending 30th June 2015 and abalance sheet as at 30th June 2015.TOPIC: MONEY

​(Present value of a growing​ perpetuity) Round to the Nearest CentWhat is the present value of a perpetual stream of
​(Present value of a growing​ perpetuity) Round to the Nearest CentWhat is the present value of a perpetual stream of cash flows that pays $1,500 at the end of year one and the annual cash flows grow at a rate of 3​% per year​ indefinitely, if the appropriate discount rate is 12​%?What if the appropriate discount rate is 10​%?

1. Which of the following statements is true?i. Assuming the strike price is the same, both American call prices and
1. Which of the following statements is true?i. Assuming the strike price is the same, both American call prices and put prices increase with time to maturity.ii. A European call with longer time to maturity has a higher price provided there are no dividends to be paid after the call with shorter time to maturity expires.iii. A European put option’s price can actually decrease with increase in time to maturity.A. i and ii onlyB. ii and iii onlyC. i and iii onlyD. All of the aboveE. None of the above

The Garland Corporation has a bond outstanding with a $80 annual interest with semiannual payment, a market price of $800,
The Garland Corporation has a bond outstanding with a $80 annual interest with semiannual payment, a market price of $800, and a maturity date in 5 years. Assume the par value of the bonds is $1,000. Find the following: Use Appendix B and Appendix C. (Do not round your intermediate calculations. Round the final answers to 2 decimal places.) a. The coupon rate % -?b. The current yield % -?c. Calculate the net present value. Net present value $ -? d. The yield an investor would realize if coupon payments were reinvested at 10 percent (holding period return) % -?

You regress the annual excess return of a stock on the excess returnsof the market portfolio. During the sample period,
Finance Assignment Writing ServiceYou regress the annual excess return of a stock on the excess returnsof the market portfolio. During the sample period, the excess return of the market portfolio had an average of 6% and a standard deviation of 17%. The T-Bill rate is 2%. coefficients t-statIntercept 0.0201 3.41rM – rf 0.7419 6.12-Does the stock have a statistically significant CAPM alpha?- What is the 95% confidence interval for the CAPM beta of ABC?- If we invest $2,000 in the stock, $5,000 in the market portfolio and $3,000 in Treasury Bills, what is the CAPM alpha of that portfolio? What is the market beta of that portfolio?

It is characteristic of foreign exchange dealers to:bring buyers and sellers of currencies together but never to buy and hold
It is characteristic of foreign exchange dealers to:bring buyers and sellers of currencies together but never to buy and hold an inventory of currency for resaleact as market makers, willing to buy and sell the currencies in which they specialize.trade only with clients in the retail market and never operate in the wholesale market for foreign exchangeAll of the above are characteristics of foreign exchange dealers

You work for Hydro-Tech, a large manufacturer of high-pressure industrialwater pumps. The firm specializes in natural disaster services, ranging from
You work for Hydro-Tech, a large manufacturer of high-pressure industrialwater pumps. The firm specializes in natural disaster services, ranging from pumps that draw water from lakes, ponds, and streams in drought-stricken areas to pumps that remove high water volumes in flooded areas. You report directly to the CFO. Your boss has asked you to calculate the Weighted Average Cost of Capital (WACC)in preparation for an executive retreat. Too bad you’re not invited, as water pumps and skiing are on the agenda in Sun Valley, Idaho. At least you have an analyst on hand to gather the following required information: 1) The risk-free rate of interest, in this case, the yield of the ten-year government bond, which is 3%. 2) Hydro-tech’s: a.Market capitalization (its market value of equity) is $100 million.b.CAPM beta, 1.2.c.Total book value of debt outstanding, is $50 million.d.Cash, is $10 million.3) The cost of debt (using the quoted yields on Hydro-Tech’s outstanding bond issues) which is 5%.With this information in hand, you are now prepared to undertake the analysis.Case Questions:1) Calculate Hydro-Tech’s net debt.2) Compute Hydro-Tech’s equity and (net) debt weights based on the market value of equity and the book value of net debt.3) Calculate the cost of equity capital using the CAPM, assuming a market risk premium of 5%.4) Using a tax rate of 35%, calculate Hydro-Tech’seffective cost of debt capital.5 Calculate HT’s WACC .

case in question: https://www..com/file/32476507/Worldcomdocx/ I need help with determining the cost of the 3, 5, 7, and 30 year notes
case in question: https://www..com/file/32476507/Worldcomdocx/ I need help with determining the cost of the 3, 5, 7, and 30 year notes (percentage yield)The formal format of the question is as follows: Estimate the expected costs (percentage yields) that WorldCom will incur on the 3‐year, 5‐year, 7‐year, and 30‐year notes. How do I calculate the cost of these debt issuances and their respective yields?

The ExCommunicado Company tries to follow a pure “residual” dividendpolicy. Earnings and dividends last year were 100 million and 20
The ExCommunicado Company tries to follow a pure “residual” dividendpolicy. Earnings and dividends last year were 100 million and 20 million respectively. Anticipated earnings for this year are 80 million. ExCommunicado is financed completely with common equity. The required rate of return on retained earnings is 15 percent and the cost of new equity is 16 percent. If ExCommunicado has 70 million of investment projects having expected returns greater than 15 percent, determine the total amount of dividends ExCommunicado should pay

Excel Hydro took a loan contract which requires a payment of $40 millionplus interest two years after the contract’s date
Excel Hydro took a loan contract which requires a payment of $40 millionplus interest two years after the contract’s date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale.Excel Hydro is also considering building a nuclear power plant, which will be ready for production in 2030. The country’s governing body is also considering a decommissioning liability law for the operator to put aside $1 million every month towards decommissioning cost. If the production life of the plant is 60 years and the operator puts the money at the end of the month in a savings account, earning 7.25% compounded monthly. During the 60 years of production life of the plant, the operator will put $1 million at the end of the month in a savings account, earning 7.25% compounded monthly. At the end of the production life of the plant, there are no more contributions and the money is expected to grow at the rate of 6% compounded quarterly for the next 30 years.1. How many months before the maturity date did the sale take place?2. What will be the value of the decommissioning fund after 60 years of production?3. What will be the value of the decommissioning fund in 2120?4. How much interest is included in the future value in 2120?

Home Place Hotels, Inc., is entering into a 3- year remodeling andexpansion project. The construction will have a limiting effect
Home Place Hotels, Inc., is entering into a 3- year remodeling andexpansion project. The construction will have a limiting effect on earnings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last year, the company paid a dividend of $3.40. It expects zero-growth in the next year. In years 2 and 3, 5% growth is expected, and in year 4, 15% growth. In year 5 and thereafter, growth should be constant 10% per year. What is the maximum price per share that an investor who requires a return of 14% should pay for Home Place Hotels common stock?

1 Outline four ways in which business studies may be of benefit to an individual. (4 marks)2 Highlight four external
1 Outline four ways in which business studies may be of benefit to an individual. (4 marks)2 Highlight four external factors that may negatively influence the operations of a business.(4 marks)3 State four characteristics of a successful entrepreneur. (4 marks)4 State four functions of an office. (4 marks)5 Fill the relevant branches of trade in the diagram given below: (3 marks)The following balances were extracted from the books of Wekesa Traders on 31st December, 2009. Items Shs Capital 500,000 Cash in hand 20,000 Buildings 200,000 Furniture 25,000 Motor vehicle 400,000 Creditors 18,000 Debtors 36,000 Bank 100,000 Bank loan 263,000 Using the above information, prepare Wekesa Trader’s Trial Balance on 31st December, 2009. (5 marks) 250 8 The following information relates to Karibu traders for the year ended 31st December 2008. Details Shs Fixed assets 1,840,000 Current assets 400,000 6 year bank loan 600,000 Current liabilities 150,000 Determine owner’s capital using the information given above. (4 marks) 9 State the type of unemployment relating to each of the following descriptions: (4 marks) (a) Caused by alternating trading patterns occurring at similar times. (b) Arises where workers have more skills and higher qualifications than the job requirements. (c) Arises out of a mismatch between the skills possessed by potential employees and the location of the jobs available. (d) Arises when people are unwilling to take up jobs due to low pay. 10 Highlight four circumstances under which the capital of a business may change. The following balances were extracted from the books of Wekesa Traders on 31st December, 2009. Items Shs Capital 500,000 Cash in hand 20,000 Buildings 200,000 Furniture 25,000 Motor vehicle 400,000 Creditors 18,000 Debtors 36,000 Bank 100,000 Bank loan 263,000 Using the above information, prepare Wekesa Trader’s Trial Balance on 31st December, 2009. (5 marks) 250 8 The following information relates to Karibu traders for the year ended 31st December 2008. Details Shs Fixed assets 1,840,000 Current assets 400,000 6 year bank loan 600,000 Current liabilities 150,000 Determine owner’s capital using the information given above. (4 marks) 9 State the type of unemployment relating to each of the following descriptions: (4 marks) (a) Caused by alternating trading patterns occurring at similar times. (b) Arises where workers have more skills and higher qualifications than the job requirements. (c) Arises out of a mismatch between the skills possessed by potential employees and the location of the jobs available. (d) Arises when people are unwilling to take up jobs due to low pay. 10 Highlight four circumstances under which the capital of a business may change. 12 Outline one circumstance under which each of the following source documents may be issued by a trader: (4 marks) (a) Debit note ………………………………………………………………………………………………………….. (b) Invoice ………………………………………………………………………………………………………………. (c) Credit note …………………………………………………………………………………………………………. (d) Quotation …………………………………………………………………………………………………………… 13 Name four documents that may be required by the registrar of companies in order to register a public limited company. (4 marks) 14 Outline four measures that a country can take to reduce the level of inflation. (4 marks) 15 Outline four factors that may make a producer to by-pass the wholesaler when distributing goods. (4 marks) 16 Highlight four benefits that a country would get by developing her infrastructure. (4 marks) 17 State four benefits of a bonded warehouse to the government. (4 marks) 18 Outline four qualities of a successful salesperson. (4 marks) 19 Highlight four factors that may cause the supply curve to shift to the right. (4 marks) 20 Outline four positive effects that production activities may have on community health. (4 marks) 21 State four basic features of a market. (4 marks) 22 Outline four features of a parastatal. (4 marks) 23 Outline four circumstances in which the government may be involved in business. (4 marks) 24 Highlight four factors that a trader may consider when choosing a means of transport. (4 marks) 25 State four reasons for privatizing public corporations. (4 marks) 1 (a) Explain five benefits that may accrue to a country with a large proportion of skilled labour force. (10 marks) (b) Outline five characteristics of an efficient tax system. (10 marks) 2 (a) Explain five benefits that Kenya may get as a member of C.O.M.E.S.A. (10 marks) (b) Explain five factors that may hinder economic development in Kenya. (10 marks) 3 (a) Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas. (10 marks) (b) The following balances were extracted from the books of Soilo Traders on 31st December 2010. Shs Machinery 360,000 Furniture 430,500 Sales 500,000 Opening stock 75,000 Closing stock ? Purchases 395,000 Rent income 72,000 General Expenses 60,000 Debtors 62,250 Creditors 101,550 Bank 202,000 Cash 88,800 Capital 1,000,000 Additional information: Gross profit margin is stated at 40%. Prepare: (i) Trading, Profit and Loss Account for the year ended 31st December 2010. (5 21 marks)