Section B (2 Mark)
You are estimating the value of a small office building. Suppose the estimated NOI for the first year of operations is Rs100,000. a. If you expect that NOI will remain constant at Rs100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12.2% discount rate?

Section C (4 Mark)
Which of the following would you consider the best indicator of an undervalued firm?

Section A (1 Mark)
For any given stock, which of the following must be true?

Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose taxable income is:
* $42000 in SGD and he is a Singapore citizen
* £35500 p.a (only employment)and he is a UK citizen

Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?