Question? Call Us  +1 (817) 546-4770

ACCTING 2501 Financial Accounting

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

ACCTING 2501 Financial Accounting

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

ACCTING 2501 Financial Accounting

0 Download6 Pages / 1,449 Words

Course Code: ACCTING 2501
University: The University Of Adelaide

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Question:
Describe about the Financial Accounting For Securities and Portfolio.
Answer:
Scotty Thomosn has to pay $31,635.332 currently to get the given cash inflow in the case. Following is the calculations of present value of the cash inflows of the company:
 

Calculation of present cash flow

 

Interest rate

 

Interest rate = 6%

End of year

Future Cash Flow

P.V. factor

Present cash flow

1

 $            3,000

0.943

 $         3,180.000

2

 $            6,500

0.890

 $         7,303.400

3

 $               280

0.840

 $            333.484

4

 $            1,400

0.792

 $         1,767.468

5

 $            3,000

0.747

 $         4,014.677

6

 $                 –   

0.705

 $                     –    

7

 $          10,000

0.665

 $       15,036.303

Present cash flow

 

 $       31,635.332

 
Monthly repayment of jarred waite’s new apartment would be $ 9662.79 per month in order to repay the $ 18,00,000 in 360 monthly instalments.
 

 

 

Loan amount

1800000

Term (monthly)

360

Nominal rate

5%

Monthly nominal rate

0.004166667

EMI =[P x R x (1+R)^N]/[(1+R)^N-1]

$9,662.79

The details of retirement are as follows:

Deposit amount

1500

50000

 

Term (monthly)

420

35

 

Nominal rate

7%

7%

 

Monthly nominal rate

0.005833333

 

 

Future value

$2,701,581.90

$533,829.07

$3,235,410.98

 

 

 

Future value at the age of 65

$3,235,410.98

Term (monthly)

25

Nominal rate

5%

Amount after 25 years

200000

Pension amount

$229,560.36

 

 

It explains that the current investment would be $ 3,235,410.98 at the age of 65 and till the age of 90, $ 2,29,560 would be get as pension amount as well as $ 2,00,000 would be saved at the age of 90.
Question 2:

Cash flow timeline:

%

Year 1 to 4 = 4.5%

Year 5-6= 6%

Year 7-10 = 7%

CFi

 

2500

 

2500

 

2700

-1500

 

 

7000

10000

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2

3

4

5

6

7

8

9

10

 Accumulated value:

%

Year 1 to 4 = 4.5%

Year 5-6= 6%

Year 7-10 = 7%

CFi

 

2500

 

2500

 

2700

-1500

 

 

7000

10000

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2

3

4

5

6

7

8

9

10

P.V. of cash flow

2392.34

0

2190.74

0

2017.6

-1057.44

0

0

3807.54

5083.49

Accumulated value

$ 4583.09

$ 960.15

$ 8891.03

Total value

$ 14,434.27

Taxation is one of the crucial elements of economy which helps the country and the government to generate the revenue to make the budgets and improve the economical performance of the business. It focuses on the total population and the total income of individual, corporate etc to generate the tax amount. The Australian government also follows the taxation rules to generate the revenues from the country in order to improve the performance of the country.
The Australian federal government has argued and stated in its various reports that the Australian corporate taxation rate is quite higher and the government must reduce the level of the taxation rate from 30% to 25%. This change into the taxation system of Australia would motivate the non tax payers to pay the accurate tax amount and because of it, the total revenue from taxation of the company would be improved (The conversation, 2018). It would further lead to the government to spent on the betterment of the state and the country and resolve various economical issues such as unemployment, education etc.
However, it has been argued by various economists that the reduction into the taxation rate would not lead towards the higher revenue because people will not also pay the tax even if the rate would be reduced by the government and thus it would lead to the government towards loss. But various economists are against to this theory and they stated that various other countries even the developed company like US is thinking to reduce the level of taxation rate to improve the overall performance of the Australian economy (Campbell & Bond, 2017). As the economist of US find that the people try too hard to save their amount from taxation as the tax amount affect too much on the total profitability position of the business and due to it, the stakeholder position of the business also get affected (Braithwaite, 2009).
The change into the taxation system and reduction in the total Australian corporate tax rate would motivate the tax payers of the country to pay the tax amount and thus the Australian government would have enough funds to implement the better strategies and policies for the business (Saad, 2014). It would directly lead to the Australian government towards the increment path. The revenue would be used by the government for the betterment of the society, environment and other cause of the country (Henry et al 2009).
The argument of economist related to the non reduction in the corporate tax rate of Australia that people will not pay the tax even if the rate would be reduced by the government and thus it would lead to the government towards loss has been supported by various people and they agree that it is not a better choice to reduce the level of black money and improve the revenue (Bahl & Bird, 2008). But in order to argue, it has been argued by other economist that the data and the past changes into the taxation rate in various countries prove that it is one of the best motivations for the tax payers to attract and motivate them to pay the tax amount (Spilimbergo, Schindler & Symansky, 2009).
Thus, it is concluded that the Australian government should reduce the taxation rate to 25%. The change is not too big and it would help the country to improve the overall performance of the business. Taxation is one of the crucial elements of economy which helps the country and the government to improve the economical performance of the business. The changes into the taxation position would help the country to improve the employment rate in the business and overall performance of the business. 

Calculation of monthly return:

 

Stock price

Return

Date

WOW

WES

MKT

WOW

WES

MKT

31/08/2017

25.21

41.33

5744.9

 

 

 

30/09/2017

25.88

41.8

5976.4

2.66%

1.14%

4.03%

31/10/2017

26.91

43.92

6057.2

3.98%

5.07%

1.35%

30/11/2017

27.3

44.42

6167.3

1.45%

1.14%

1.82%

31/12/2017

26.95

43.81

6146.5

-1.28%

-1.37%

-0.34%

31/01/2018

27.61

41.33

6117.3

2.45%

-5.66%

-0.48%

28/02/2018

26.29

41.56

5868.9

-4.78%

0.56%

-4.06%

31/03/2018

27.86

43.77

6071.6

5.97%

5.32%

3.45%

30/04/2018

28.46

45.56

6123.5

2.15%

4.09%

0.85%

31/05/2018

30.52

49.36

6289.7

7.24%

8.34%

2.71%

30/06/2018

30.09

49.46

6366.2

-1.41%

0.20%

1.22%

31/07/2018

28.8

51.49

6357.9

-4.29%

4.10%

-0.13%

24/08/2018

28.8

51.49

6357.9

0.00%

0.00%

0.00%

Calculation of average monthly holding period return:

 

Stock price

Return

Date

WOW

WES

MKT

WOW

WES

MKT

Average monthly return

1.18%

1.91%

0.87%

Calculation of annual holding period return:

 

Stock price

Return

Date

WOW

WES

MKT

WOW

WES

MKT

31/08/2017

25.21

41.33

5744.9

 

 

 

30/09/2017

25.88

41.8

5976.4

2.66%

1.14%

4.03%

31/10/2017

26.91

43.92

6057.2

3.98%

5.07%

1.35%

30/11/2017

27.3

44.42

6167.3

1.45%

1.14%

1.82%

31/12/2017

26.95

43.81

6146.5

-1.28%

-1.37%

-0.34%

31/01/2018

27.61

41.33

6117.3

2.45%

-5.66%

-0.48%

28/02/2018

26.29

41.56

5868.9

-4.78%

0.56%

-4.06%

31/03/2018

27.86

43.77

6071.6

5.97%

5.32%

3.45%

30/04/2018

28.46

45.56

6123.5

2.15%

4.09%

0.85%

31/05/2018

30.52

49.36

6289.7

7.24%

8.34%

2.71%

30/06/2018

30.09

49.46

6366.2

-1.41%

0.20%

1.22%

31/07/2018

28.8

51.49

6357.9

-4.29%

4.10%

-0.13%

24/08/2018

28.8

51.49

6357.9

0.00%

0.00%

0.00%

Average monthly return

1.18%

1.91%

0.87%

Annualized holding return

15.09%

25.49%

10.95%

Calculation of standard deviation:

 

Stock price

Return

 

WOW

WES

MKT

Standard deviation

0.029717

0.030026

0.020986

The risk and return:

 

Beta

CAPM

WOW

0.77

0.049

WES

0.81

0.050

CAPM:

WOW

Calculation of cost of equity (CAPM)

Risk free rate (Bloomberg, 2018)

2.00%

RM

5.75%

Beta

0.770

Required rate of return

4.89%

 

WES

Calculation of cost of equity (CAPM)

Risk free rate (Bloomberg, 2018)

2.00%

RM

5.75%

Beta

0.810

Required rate of return

5.04%

 
Portfolio return and beta:

Particulars

WOW

WES

 

 

 

Weightage

30%

70%

 

 

 

Beta

0.77

0.81

Portfolio Beta

 

 

 

 

 

Portfolio Beta

0.80

Market Risk Premium

5.75%

Risk Free Rate

2.00%

 

 

 

Portfolio Expected Return

6.59%

Suggestions:

The evaluation on the beta and return of both the securities and the portfolio explains that the portfolio’s return is highest as well as the risk of portfolio is lower and thus the investment must be done in the portfolio and the single asset must not be bought by the individual. 
References:
Bahl, R. W., & Bird, R. M. (2008). Tax policy in developing countries: Looking back—and forward. National Tax Journal, 5 (i), 279-301.
Braithwaite, V. A. (2009). Defiance in taxation and governance: Resisting and dismissing authority in a democracy. Edward Elgar Publishing.
Campbell, H. F., & Bond, K. A. (2017). Effective marginal tax rates in Australia. Economic Analysis and Policy, 27(2), 151-158.
Henry, K., Harmer, J., Piggott, J., Ridout, H., & Smith, G. (2009). Australia’s future tax system. Canberra, Commonwealth Treasury.
Saad, N. (2014). Tax knowledge, tax complexity and tax compliance: Taxpayers’ view. Procedia-Social and Behavioral Sciences, 3 (ii), 109, 1069-1075.
Spilimbergo, M. A., Schindler, M. M., & Symansky, M. S. A. (2009). Fiscal multipliers (No. 2009-2011). International Monetary Fund. Retrieved from: https://forschung.snb.ch/files/Sutter/IMF_FiscalMultipliers.pdf.
The conversation. (2018). F actCheck: is Australia’s corporate tax rate not competitive with the rest of the region?. Retrieved from: https://theconversation.com/factcheck-is-australias-corporate-tax-rate-not-competitive-with-the-rest-of-the-region-37226

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.

E-mail

Yes, alert me for offers and important updates

Submit 

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 6 pages

PAY 4 USD TO DOWNLOAD

*The content must not be available online or in our existing Database to qualify as
unique.

Cite This Work
To export a reference to this article please select a referencing stye below:

APA
MLA
Harvard
OSCOLA
Vancouver

My Assignment Help. (2021). Financial Accounting. Retrieved from https://myassignmenthelp.com/free-samples/accting-2501-financial-accounting/crucial-elements.html.

“Financial Accounting.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/accting-2501-financial-accounting/crucial-elements.html.

My Assignment Help (2021) Financial Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/accting-2501-financial-accounting/crucial-elements.html[Accessed 18 December 2021].

My Assignment Help. ‘Financial Accounting’ (My Assignment Help, 2021) accessed 18 December 2021.

My Assignment Help. Financial Accounting [Internet]. My Assignment Help. 2021 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/accting-2501-financial-accounting/crucial-elements.html.

×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}

×

Thank you for your interest
The respective sample has been mail to your register email id

×

CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.

Account created successfully!
We have sent login details on your registered email.

User:

Password:

For years, MyAssignmenthelp.com has been operating as one of the cheap assignment help providers in the USA. We are one of the best college paper writing services that keep service price minimal. We do not let the affordability of our service to hamper the standard of our work. We have separate teams of experts to provide report writing help . At MyAssigenmnthelp.com, we believe in earning credibility, so students can pay for assignments only after getting satisfied solutions. Tough assignments bother you? Trust us with your project. You will not regret paying us to write assignments for you.

Latest Management Samples

div#loaddata .card img {max-width: 100%;
}

MPM755 Building Success In Commerce
Download :
0 | Pages :
9

Course Code: MPM755
University: Deakin University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
Introduction
The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…
Read
More

SNM660 Evidence Based Practice
Download :
0 | Pages :
8

Course Code: SNM660
University: The University Of Sheffield

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answers:
Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Read
More
Tags:
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration 

BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :
20

Course Code: BSBHRM513
University: Tafe NSW

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…
Read
More

MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :
5

Course Code: MKT2031
University: University Of Northampton

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answer:
Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Read
More
Tags:
Turkey Istanbul Management University of Employee Masters in Business Administration 

MN506 System Management
Download :
0 | Pages :
7

Course Code: MN506
University: Melbourne Institute Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Introduction
An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Read
More
Tags:
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology 

Next

Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

PROJ6016 Employer Based Project

Free Samples PROJ6016 Employer Based Project .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} PROJ6016 Employer

Read More »

PPMP20009 Marking Rubric

Free Samples PPMP20009 Marking Rubric .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} PPMP20009 Marking Rubric

Read More »