Week 1: Introduction to Corporate Finance 1.4. Assignment 1a Due date: January 30‚ 2011 Instruction: Please submit your assignment as an attachment to my Blackboard E-mail by midnight on the due date Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre‚ a professional tennis player who has just come to the United States from Chile
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IMBA -FIN 6425 – Quiz 1 Corporate Finance - Solution– Nimalendran This is an individual quiz and you should submit the answers on-line by the scheduled date. You are allowed to use any resources EXCEPT help from any other person. You are allowed to use EXCEL for the calculations. 1. Barkley Credit Union sets a low annual percentage rate (5%) for all its credit card customers instead of basing the interest rates on the customers’ credit scores. Consequently Barkley is exposed to ______________
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project with free cash flows in one year of $130‚000 or $180‚000‚ with each outcome being equally likely. The initial investment required for the project is $100‚000‚ and the project’s cost of capital is 20%. The risk-free interest rate is 10%. a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment‚ the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised
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Learning Team Reflection FIN/571 WK4 Learning Team Reflection In week four‚ Team A grasped the concept of calculating the valuation of stocks. The team also reviewed the concept video titled “Stock Valuation. The video focused on how markets and investors value stocks. In addition‚ Team A concentrated on the main drivers of stock valuation. We found that both markets and investors value stocks very highly‚ as stocks play a significant role in a company’s worth. They express to investors
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Corporate Finance Syllabus Spring 2009 Prof. Anna Scherbina UC Davis Graduate School of Management Office: 126 AOB IV Tel: 530.754.8076 e-mail: ascherbina@ucdavis.edu Course Focus We will explore how corporations make financial decisions through the analysis of Harvard Business School cases. Should a firm undertake a new investment opportunity‚ raise equity‚ acquire another firm‚ or conduct an IPO? How should small firms manage their working capital? How fast should a firm grow
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ADM 3350 M Winter 2010 CORPORATE FINANCE MIDTERM EXAMINATION – February 10th‚ 2010 Professor: Kaouthar LAJILI‚ PhD.‚ CGA Duration: 1 hour and 30 minutes Part I 15 Part II 35 TOTAL 50 NAME: __________________________________________ STUDENT #: ________________________ PART I: Multiple Choice Questions (15 points) Please circle the correct answer 1. In an EPS-EBI graphical relationship‚ the slope of
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[pic] ADM 3350 M Winter 2010 CORPORATE FINANCE ANSWER KEY MIDTERM EXAMINATION – February 10th‚ 2010 Professor: Kaouthar LAJILI‚ PhD.‚ CGA Duration: 1 hour and 30 minutes | | | | |INSTRUCTIONS | | |
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Question Type: # Of Questions: # Correct: Multiple Choice 4 1 Many Multiple Choice 2 0 Matching 1 1 Essay 1 N/A Grade Details - All Questions 1. Question : (TCO 1) Why is maximization of the current value per share a more appropriate financial management goal than profit maximization? Student Answer: INCORRECT Because by maximizing the current stock value you also maximize the company’s profit for the year. CORRECT Because this criterion is non-ambiguous. Because financial
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Chapter One Basic Areas of Finance: 1. Corporate Finance = Business Finance 2. Investments a. Work with financial assets such as stocks and bonds. b. Value of financial assets‚ risk verses return and asset allocation. c. Job opportunities. 3. Financial Institutions a. Companies that specialize in financial matters. i. Banks – Credit unions‚ savings‚ and loans. ii. Insurance Companies iii. Brokerage Firms b. Job Opportunities. 4. International Finance a. An area of specialization within each of the
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WEEK 4 ASSIGNMENT 1 1 Week 4 Assignment 1 Edwin Lopez-Petrilli Professor William Hall Fundamentals of Corporate Finance Tuesday July 26‚ 2011 WEEK 4 ASSIGNMENT 1 2 Explain why market prices are useful to a financial manager. Financial managers are tasked with making investment decisions‚ financing‚ and managing cash flows from operating activities therefore when prices from competitive markets determine the cash value of goods and the price determines the value of the goods. Financial
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