Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan Loan to government ('000) 3000 1000 9000 45,000 4000 a) Calculate risk weighted asset b) Calculating the Capital Adequacy Ratio (CAR) c) Why Capital Adequacy Ratio Matters? Risk weight 90% 75% 0

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Q: Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan…

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A: The general formulas for future value (FV) and present value (PV) are:\[ FV = PV \times (1 +…

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A: YearsCash Flows0($875)1$3002$3203$3404$360Rate10%Required:Modified Internal Rate of Return =?

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Q: Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan…

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A: To open the "NPV function" window - MS-Excel --> Formulas --> Financials --> NPV.

Q: Consider projects A and B: Cash Flows (dollars) Project CO C1 C2 22,600 22,600 +$6,703 35,000 35,000…

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A: GLOBEX- Unlevered Beta- =Levered Beta[1+DE1-t] = 1.10/(1+ {40/60} [1- 0.45]) = 1.10/1.37 = 0.80

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Q: 7. Based on NPV which project would you ассept?

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A:

Q: The payback period in years Pounded to 2 decimal places for Project is

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