“Sum of money is worth more now than the same sum of money in the future”. Critically evaluate the meaning of the above by differentiating the present value with the future value of money. ii Tesco...

“Sum of money is worth more now than the same sum of money in the future”.
Critically evaluate the meaning of the above by differentiating the present value
with the future value of money.

ii Tesco Company currently pays a dividend of Rs. 2.00 per share and this dividend
are expected to grow at a 15% annual rate for 3 years, after which it is expected
to grow at an 8 % rate forever. What value could you place on the equity if a 9 %
rate of return were required?

iii Amaya Construction is a company engaged in the construction of Roads. On 1
January 2018, it issued 5,000 5-year bonds with a par value of Rs.1,000 per bond.
They have a current market price of Rs.975, carry an annual coupon rate of 9%
and are callable at Rs. 1050 any time in 3rd year. The interest rate in year 3 is 10%.
Estimate the yield to call (YTC) and yield to maturity (YTM) and tell which rate
is a better estimate of the expected rate of return on the bond.