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Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $, %, commas, etc.). Enter all monetary answers to the nearest dollar (no decimal/cents) and all interest rates to the nearest on hundredth of a percent (two decimal places). Read the syllabus for examples. The points for each question are listed in parentheses at the start of the question, and the total points for the entire assignment add up to 100. Question 1

(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer| | Score| Explanation|
True| | 5.00| Correct. You understand Time value of money.| Total| | 5.00 / 5.00| |
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest. Your Answer| | Score| Explanation|
False| | 0.00| Learn how to calculate FVs of simple one-shot cash flows. Intuitively, compounding should favor the first option.| Total| | 0.00 / 5.00| |
Question Explanation
All about compounding.
Question 3
(5 points) Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is 6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar) will she need to earn today to buy the bag for $400 one year from now? (Enter just the number without the $ sign or a comma) Answer for Question 3

Your Answer| | Score| Explanation|
377| | 5.00| Correct. You know it has to be less than $400.| Total| | 5.00 / 5.00| |
Question Explanation
Simple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20...

...Question 1
The rapid growth in the international trade has also increased the risk of exchange rate uncertainty for the various firms, specially involved in the international business. As compared to other macroeconomic factors like interest rate and inflation rate, foreign exchange rate exposure is four times and ten times as volatile as interest rate and inflation rate respectively (Jorion, 1990). This type of risk has forced the firms to pay more attention to the effect of exchange rate exposure on the firm transactions and its value. Exchange rate exposure can affect the value of firm’s assets and liabilities that are denominated in the foreign currencies. Therefore, exchange rate movement also affects the stock price of the firm (Chen, Naylor and Lu, 2004). Transaction based exchange rate exposure affect the competitive position, the inputs and outputs, the supply and demand chains of the international firms.
Transaction based exposure is the type of exchange rate risk that exists when firms engaged in the financial obligations due to be settled in foreign currencies. For example, a company that conduct import and export business may be due to be paid foreign currency in next 3 months for some goods exported. When they will receive the payment, they have to convert the foreign currency into their local currency. If during these three months, the value of local currency becomes stronger against the foreign currency, then the firm will receive fewer amounts as...

...1
SACRED HEART JUNIOR COLLEGE
COURSE OUTLINE
Course Code: ACCT1001213
Course Title: Introduction to Finance
Credit Hours: 3
Room: Room 3
Date & Time: Tuesday and Friday 4:55pm to 6:10pm
Semester/Year: Semester 2 (Spring) 2014
Prerequisites: N/A
Co requisites: N/A
Instructor’s Name: Mrs. Charmaine Castillo MBA
Contact Number: 824-2102
E-mail Address: ccastillo@shc.edu.bz
Office Hours: Mondays 2:05 pm to 5:05pm or by appointment
Required Textbook(s):
Foundations of Finance. 7th Ed.; Arthur J. Keown, John D. Martin, J. William Petty;
Pearson, Prentice Hall 2011
Fundamentals of Financial Management 11th Ed; Brigham, Eugene F. Houston, Joel, F.
Thomson Southwestern Mason, Ohio 2007
Required Course Materials:
This course requires quantitative analysis. It is therefore imperative that students acquire
his or her own calculator. This calculator must be able to perform financial calculations
such as time value of money, net present value, and internal rate of return. During tests
and examinations, the sharing of calculators will be strictly prohibited.
Suggested Supplemental Materials (if applicable):
In this class we will use the Moodle (or other) Learning Management System. The site
will contain power point slides, problem sets and other materials relevant to the course.
Please note that the lecture slides are an outline of what will be covered in class and will
not contain examples or solutions to problem...

...
Introduction - Types Of Financial Institutions And Their Roles
A financial institution is an establishment that conducts financial transactions such as investments, loans and deposits. Almost everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major categories of financial institutions and their roles in the financial system.Commercial BanksCommercial banks accept deposits and provide security and convenience to their customers. Part of the original purpose of banks was to offer customers safe keeping for their money. By keeping physical cash at home or in a wallet, there are risks of loss due to theft and accidents, not to mention the loss of possible income from interest. With banks, consumers no longer need to keep large amounts of currency on hand; transactions can be handled with checks, debit cards or credit cards, instead.Commercial banks also make loans that individuals and businesses use to buy goods or expand business operations, which in turn leads to more deposited funds that make their way to banks. If banks can lend money at a higher interest rate than they have to pay for funds and operating costs, they make money.Banks also serve often under-appreciated roles as payment agents within a country and between nations. Not only do banks issue debit cards that allow account...

...[SEGI COLLEGE KL] |
[Introduction to Finance]
Student Particulars
Name | | NIRSHEILA SHAM KAUR A/P SHAMSHER SINGH |
IC Number | | 890909-14-6640 |
Student Number | | SC-KL-00037505 |
Course | | EXECUTIVE DIPLOMA IN BUSINESS ADMINISTRATION |
Subject Title | | Introduction to Finance |
Subject Code | | |
Mode of Study | | Full-Time Part-Time Independent Learning E-Learning |
Name of Lecturer | | Mr Terrence Tan |
Due Date | | 20/02/2013 |
College | | SEGI COLLEGE KL |
Declaration by student:I, NIRSHEILA SHAM KAUR A/P SHAMSHER SINGH, hereby declare that the attached assignment is my own work and understand that if I am suspected of plagiarism or another form of cheating; my work will be referred to the Programme Director who may, as a result recommend to the Examinations Board that my enrolment in the programme be discontinued.Acknowledgement of receipt____________ _____________Date Received Signature of Receiving Officer |
A) Difference of Principal and Agent
An agency trade is when a firm buys or sells a security on behalf of a client to a third party. They will usually collect a commission for this service. During this transaction the firm does not own the security itself. A principal trade is when a firm buys or sells securities from their own account. Anytime the firm is buying or selling from within their own inventories, it is a principal...

...Question 1
(5 points) By simply increasing the number of assets (e.g., assets > 30) in any portfolio, you can diversify your exposure to specific/idiosyncratic risk.
False.
True.
Question 2
(10) You have an equally weighted portfolio that consists of equity ownership in three firms. Firm A is trading at $23 per share and has a beta of 1.15; Firm B is trading at $16 per share with a beta of 1.60; Firm C is trading at $76 per share with a beta of 0.85. Assume a risk free rate of 2% and market return of 7%. If each stock has a standard deviation of 40% and the stocks have a correlation of 0.20 with each other, your portfolio's expected return is closest to
7%
10%
5%
8%
Question 3
(10 points) You have a portfolio that consists of equity ownership in three firms. You own 200 shares of Euro General Stores (EGS), 450 shares of Fuerte Steel (FS) and 350 shares of Bamboo Flooring (BF). Their current share prices are $62, $73, and $12, respectively. What is the weight of FS in your portfolio? (No more than two decimals in the percentage weight, but do not enter the % sign.)
Answer for Question 3
Question 4
(10 points) With everyone nervous about their investments after the recent financial crisis, suppose a new firm, Safety Net Insurance (SNI), emerges to sell people insurance against poorly performing markets in exchange for an annual premium. As an investor in SNI, you would expect this company's share to have a beta that is:
Close to zero.
Negative.
Positive....

...Question 1
(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer Score Explanation
True ✔ 5.00 Correct. You understand Time value of money.
False
Total 5.00 / 5.00
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years.
Your Answer Score Explanation
True ✔ 5.00 Correct; it is compounding!
False
Total 5.00 / 5.00
Question Explanation
All about compounding!
Question 3
(5 points) Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is 6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar) will she need to earn today to buy the bag for $400 one year from now? (Enter just the number without the $ sign or a comma)
Answer for Question 3
You entered:
377
Your Answer Score Explanation
377 ✔ 5.00 Correct. You know it has to be less than $400.
Total 5.00 / 5.00
Question Explanation
Simple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20 years? And how much does he/she have in FV terms?
Your Answer Score Explanation
Marge; 1935 ✔ 10.00 Correct. You know how to...

...Question 1
(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer Score Explanation
True ✔ 5.00 Correct. You understand Time value of money.
Total 5.00 / 5.00
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years.
Your Answer Score Explanation
True ✔ 5.00 Correct; it is compounding!
Total 5.00 / 5.00
Question Explanation
All about compounding!
Question 3
(5 points) Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $200. At an interest rate of 6%, how much does Shawn need to set aside today to purchase the telescope in one year? (Enter just the number without the $ sign or a comma)
Answer for Question 3
You entered:
189
Your Answer Score Explanation
189 ✔ 5.00 Correct, You know it has to be less than $200.
Total 5.00 / 5.00
Question Explanation
Simple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20 years? And how much does he/she have in FV terms?
Your Answer Score Explanation
Marge; 1935 ✔ 10.00 Correct. You know how to calculate FVs!
Total 10.00 / 10.00
Question Explanation
FV calculations of...

...Introduction to the Finance Company Project
Your team is required to analyze the future business and economic prospects of a major, publicly traded corporation using financial concepts and techniques as well as the concepts and techniques from other business areas. Make sure any statements you make in your analysis are consistent with the knowledge base of finance. Also please include your calculations (including spreadsheets), data sources (be specific, including date and page number(s)), and assumptions (explain your rationale) in the appendices.
While your analysis should be geared toward finance, nobody, of course, can make business decisions using solely finance techniques and concepts, so where applicable, incorporate techniques and analysis from other business fields.
The following is a list of the minimum requirements for your project. Additional credit will be given for creativity and analysis beyond the minimum requirement. If you have any questions, please e-mail them to your instructor.
(1) EXECUTIVE SUMMARY:
Provide a one (1) page executive summary which summarizes your findings and
provides a recommendation whether to buy or not to buy the stock and the debt securities of the company (two separate decisions).
(2) COMPANY INTRODUCTION:
Provide a one page (1) introduction to your company including: company history, strategy, main products &...