**Assignment 1: Time value of Money**

Due Date = September 24, 2013

Email: ims.assign@gmail.com

Note: Subject of email and file name should be in this format : Your_Name_Assignment_Name

If I am of 32 years today, and shall retire at the age 60. After 60 till age 80, I need a cash inflow from my investment of Rs. 10,000,000 each year. If the rate of return is 10% throughout this period, how much I need to save from today each month till age 60

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Due Date = October 1, 2013

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Note: Subject of email and file name should be in this format : Your_Name_Assignment_Name

Assume Sajid Rashid is 25 years old now, and will retire at the age of 60. He wants to plan the following.

1. Save Rs. 1200,000 for his son to go to college 25 years from now.

2. Save Rs. 900,000 for his daughter's marriage which he thinks will be 15 years from now

3. He shall go on world tour two years after his retirement, and he has calculated a cost of Rs. 2000,000 for this.

4. He will need Rs. 50,000 each month after his retirement for the next 20 years.

Find how much shall he have to save and invest monthly to meet all of the above expenditures if wants to save from today till his retirement. Assume a rate of return of 12% throughout the whole period.

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**Assignment 3: Financial Statement Analysis**

Due Date = To be notified later

Email: ims.assign@gmail.com

Note: Subject of email and file name should be in this format : Your_Name_Assignment_Name

**Requirements:**

- Find annual reports of consecutive fives of a company from non-financial sector
- Retrieve balance sheet and income statement variables from the assigned companies as per this template [Download]
- Retrieve balance sheet and income statement variables for the industry to which your selected company belongs as per above template
- Find liquidity, financial leverage, activity ratios for both your company and the industry for five consecutive years
- Conduct time series and cross-sectional analysis.

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**Assignment 4: CAPITAL BUDGETING TECHNIQUES**

Due Date = Before comprehensive

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Note: Subject of email and file name should be in this format : Your_Name_Assignment_Name

Mr. Suleman Afridi has recently heard about the announcement by Peshawar Development Authority (PDA) to sell shops in a bidding process in Phase 6 of Hayat Abad, Peshawar. According to the expectations of Mr. Afridi, the prices in the bidding process will be near 4500,000 rupees plus 450,000 government taxes. The shop will be given at a lease for 99 years. The shop can be used in any of the two alternatives:

1. Give the shop on rent for 45000 rupees per month, with 10% increase per anum

2. Instead of renting, Mr. Afridi can use the shop for starting his own grocery store. Since Afridi is employed in a government organization, he will have to hire another person on profit sharing ratio of 70% (Arfidi):30% (the other partner). The profit will be determined as follows.

a. 8% gross profit margin on total sells of grocery

b. Utility and wages are usually 1% of the total sells

c. Monthly sales will be 960,000 rupees, with 10% annual increase.

Mr. Afridi will have to contribute another 1200,000 as a working capital in the shop if he opts for option 2.

The discount rate for option 1 is 15%, whereas it is 16% for option two.

**Requirements:**

1. Show with the help of calculations (NPV, IRR, PI, and Payback) whether Mr. Afridi should buy the shop with regard to each option

2. Which of the two option should be opted for.

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**Assignment 5: Dividend Discount Models**

**Bonus assignment, marks =1**

Assume that the current dividend is Rs. 2 per share. The dividend is expected to increase by 5% till year 5, then by 3% till year 10, after which it will increase constantly at 2%, if the required rate of return on this share is 15%, what is the intrinsic value of this share?