Anonymous
Anonymous asked in Business & FinanceInvesting · 8 years ago

Interest Rate/Finance Questions!? (Best Answer)?

I have two assigned questions that are due friday and i just dont understand them, i dont want you to do the whole question for me, but to point me in the right direction would be much appreciated as im terrible with finance!

Q1

You are to research the interest rate you could have achieved for your $10,000 on the short-term money market (state your source) and calculate the interest for that period. Compare this with the profit or loss achieved with your shares and comment on the result.

HELP - Where can i find these interest rates and what should i be doing with them?

Q2

Acme Insurance Ltd, is a public company, who has issued a million shares with a $2 face value. On June 20 this year, they announced a dividend that amounted to a dividend yield of 4%. The market value of the shares on that day was $3. The company profit exceeded stockmarket expectation by 25%. If the company decided to issue 40% of its actual profits as a dividend, what was the expected profit amount for Acme Insurance for the last financial year? Justify fully.

HELP - I just dont understand this entirely, if someone could explain it, would be awesome :)

Thanks In advance!

1 Answer

Relevance
  • 8 years ago
    Favorite Answer

    I looked for relevant information on your profile but found no information. Based on one of your questions I am going to assume you are in Australia.

    I am in Canada and I would go to www.sedar.ca or www.canoe.ca to get all of the rates offered by varying banks, trust companies, credit unions, etc. I do not know if you would have similar websites so I suggest you google "compare rates of return" or something similar. You are trying to find the institution that offers the best or highest interest rate on the $10,000 you have to invest. If you are unable to find a website that compares rates, go to your local bank and ask them to give you their best rate available. When they look it up, ask what website they are using. You might have to go so far as to look at each individual bank and find their rates and do a manual comparison.

    Q2 simple math formula which you should be able to find in your study guide

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