Finance Practice Assessment 1. Frisch Fish Corp expects net income next year to be $600‚000. Inventory and accounts receivable will have to be increased by $300‚000 to accommodate this sales level. Frisch will pay dividends of $400‚000. How much external financing will Frisch Fish need assuming no organically generated increase in liabilities? A. No external financing is required. B. $100‚000 C. $200‚000 D. $300‚000 2. Under normal conditions (70% probability)‚ Financing Plan A
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MGF402 Homework 3 Due date: Thursday October 31st 1. Calculate EAR and APR for the following questions. a. You have an APR of 7.5% with continuous compounding. What is the EAR? b. You have an EAR of 9%. What is the equivalent APR with continuous compounding? c. The buyer of a new home is quoted a mortgage rate of 0.5% per month. What is the APR on the loan? d. A loan for a new car costs the borrower 0.8% per month. What is the EAR? Answer: a. 1 + EAR = eAPR => EAR = eAPR - 1 =
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Chapter 2 Self Test (Answers are below) 1. Which of the following statements about accruals and cash flows is false? A. Company value can be determined by using accrual accounting numbers. B. Accrual accounting numbers are subject to accounting distortions. C. Cash flows are more reliable than accruals. D. Cash flows cannot be manipulated. 2. Financial accounting data has some inherent limitations. Which of the following are limitations? I. Not all economic events are easily quantifiable
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in it?" The study of literature is the study of life through the eyes of an artist‚ and as such is an important part of a liberal arts education. Composition students in ENG 102 often engage in literary analysis. When you analyze a literary text‚ you will deal with basic elements of literature‚ like plot‚ theme‚ character‚ point of view‚ and setting. Close study of these elements will then lead to an essay focusing on one aspect of the work. Literary analysis is also known as literary
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provide $15‚000 a year forever. If its value is $175‚000 what must be the discount rate? (2) (Q14) Q2. a. On January 1‚ 2005‚ Noman bought 500 shares of stock for Rs.19 per share. On December 31‚ 2008‚ he sold the stock for Rs.31.50 per share. What is his annual rate of return? Interpolate to find the exact answer. (4) (Q4. Mr. Strong) 2. b. If investors are to earn a 6 percent real interest rate‚ what nominal interest rate must they earn if the inflation rate is 8 percent? (2) (Q10) 2.
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equation form‚ and conclude whether they increased‚ decreased or stayed the same and why) e) Now assume that you plan to purchase an outstanding Pennington bond on March 1‚ 2005‚ when the going rate of interest given its risk was 15.5%. How large a check must you write to complete the transaction? 2. A bond’s expected return is sometimes estimated by its YTM and sometimes by its YTC. Under what conditions would the YTM provide a better estimate and when would the YTC be better? EXPLAIN 3. An investor
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a. Why is corporate finance important to all managers? Corporate finance is important to all mangers because it lets them know the company’s financial situation before any decisions can be made within the organization. It helps managers develop strategic financial issues associated with achieving goals. Having a solid understanding of corporate finance helps mangers find ways to raise and manage its capital‚ which type of investments the firm should make‚ if profits are earned‚ how these profits
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unique people-focused‚ consensus-driven work culture initiated by the founders had been the driving force behind its growth. HP feels it is very selective in considering job candidates. Great emphasis is given on adaptability and cultural fit. An important outgrowth of the open door communication policy is what HP calls “Management by Wandering Around” (MBWA). HP has tried to spread and institutionalize this concept by wide exposure in company publications‚ meetings and
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Nature of Board Level decisions and the contribution of the finance director The performance of any organization‚ may it be for profit or not for profit‚ heavily depends on the decisions that are made by the management of the organization. It is worth noting that decisions made in the organization differ greatly‚ depending on the position of those involved in making those decisions. The board is one body that plays a crucial role in determining the future of an organization‚ based on the nature
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Vietnam’s Beverage Market Update Friday‚ 16 July 2010 Market structure and size Despite the recent global financial crisis and economic recession‚ Vietnam’s beverage market has managed to remain a strong growth opportunity. Alcoholic consumption in 2009 was estimated at 28‚034 billion VND‚ increasing by 4.47 percent year-on-year (approximately US$1.54 billion‚ falling by 5.88 percent due to the dong devaluation). Accordingly‚ beer sales were estimated at 2‚005 million liters‚ increasing by
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