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The document contains a weekly assignment for a business finance course including questions about an agency conflict in a CEO considering an acquisition, calculating market capitalization, differences between bond/equity, liability, investing/financing decisions and primary/secondary markets, and identifying examples of money market products, compound interest products, capital market products, and simple interest products from a list of national savings certificates.

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38 views1 page

Wa 1

The document contains a weekly assignment for a business finance course including questions about an agency conflict in a CEO considering an acquisition, calculating market capitalization, differences between bond/equity, liability, investing/financing decisions and primary/secondary markets, and identifying examples of money market products, compound interest products, capital market products, and simple interest products from a list of national savings certificates.

Uploaded by

Asma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Business Finance-1 (FIN506)

Weekly Assignment # 1

Instructor: Sana Tauseef


Semester: Fall 2021
Due Date: August 29, 11 p.m.

1. You are the CEO of a company and you are considering entering into an
agreement to have your company buy another company. You think the price of
target firm may be too high, but you will be the CEO of the combined, much larger
company. You know that when the company gets bigger, your pay and prestige
will increase. What is the nature of agency conflict here? (5-6 lines)

2. In the year 2020, Engro Corporation had 523.78 million shares trading at a price
of PKR345.25 per share, what was Engro’s market capitalization? The book equity
value for Engro was PKR85.10 billion, how does it compare with the figure you
calculated?

3. Explain the difference between:


a. Bond and equity securities
b. Limited and unlimited liability
c. Investing and financing decision
d. Primary and secondary market
(15-20 lines)

4. Read the features of different national saving certificates


(http://savings.gov.pk/quick-preview-certificates/) and identify one example for
each of the following:
a. money market product
b. product on which compound interest is applied
c. capital market product
d. product on which simple interest is applied

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