Assignment for Week -2 Chapter 5 (5 - 9) Bond Valuation and Interest Rate Risk Bond L Bond S INS = $100 INS = $100 M = $1‚000 M = $1‚000 N = 15 Years N = 1 Year a) 1) rd = 5% VBL = INT/ (1 + rd)t + M/ (1 + rd)N =INT [1/rd – 1/ rd(1 + rd)N ] + M/ (1 + rd)N =$100 [1/0.05 – 1/ 0.05(1 + 0.05)15] + $1‚000/ (1 + 0.05)15 =$1040 + $480.77 = $1518.98
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altering stock valuation methods to allow for better figures which satisfy the stakeholders. The straight line method is commonly used in the UK and the depreciation amount is spread equally over each accounting period when the asset is used. The reducing balance method applies “a percentage to the asset’s cost”. To conclude‚ accounting policy choices are included in the notes to the accounts and provide businesses with flexibility in decision making on what depreciation or stock valuation methods to
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Option Valuation Chapter 21 Intrinsic and Time Value intrinsic value of in-the-money options = the payoff that could be obtained from the immediate exercise of the option for a call option: stock price – exercise price for a put option: exercise price – stock price the intrinsic value for out-the-money or at-themoney options is equal to 0 time value of an option = difference between actual call price and intrinsic value as time approaches expiration date‚ time value goes to zero 21-2
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72-373-30 Working Capital Mgt Winter 2011 General Information Class meetings Section 30 Tuesday nights at 7:00pm to 9:50pm in OB B03 Starts January 11‚ 2011 Prof. G. W. Fenn Upon request and prior to class E-mail gfenn@uwindsor.ca Instructor Office hours Telephone Upon request (use Office gwf99fenn@netscape.net) Ms. S. Miller‚ tel: 519-253-3000 ext. 3128 4th floor Odette Building E-mail TBD Secretary Office stmiller@uwindsor.ca Course Description This course will introduce
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resources 11 4.0.8 Description of facilities 12 4.0.9 Furniture and Fitting 13 9000 Series Smart LED TV 13 4.0.10 Equipment and Machine 14 5.0 Financial Analysis 15 5.0.1 Asset valuation: Book value method 15 5.0.2 Market valuation method: The going market rate method 16 5.0.3 Income-based business valuation: Return on investment (ROI) method 17 6.0 References 18 7.0 Appendix 19 1.0 Executive Summary The canteen is the only food service provider at ABC University and it serve around
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Chapter 10 Stocks and Their Valuation Learning Objectives Solutions to End-of-Chapter Problems 10-1 D0 = $1.25; g1-3 = 6%; gn = 4%; D1 through D5 = ? D1 = D0(1 + g1) = $1.25(1.06) = $1.3250. D2 = D0(1 + g1)(1 + g2) = $1.25(1.06)2 = $1.4045. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1.25(1.06)3 = $1.4888. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1.25(1.06)3(1.04) = $1.5483. D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1.25(1.06)3(1.04)2 = $1.6103. 10-2 = $1.35/(12%
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25814-P.R.(081-090)Uncertainty 8/8/00 8:56 AM Page 81 Strategy under uncertainty Hugh G. Courtney‚ Jane Kirkland‚ and S. Patrick Viguerie The traditional approach to strategy requires precise predictions and thus often leads executives to underestimate uncertainty. This can be downright dangerous. A four-level framework can help. A t the heart of the traditional approach to strategy lies the assumption that executives‚ by applying a set of powerful analytic tools‚ can predict
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summary P3 Introduction: When Saint-Gobain acquires BPB P4 Synergies thought to be gained from such acquisition P5 Operational synergies P5 Financial synergies P7 The valuation of such acquisitions ( methods and problems) P9 Valuation of the current value of the target company. P10 Problem: the valuation of the potential synergies to be gained P11 Conclusion P12 References P13 Appendixes P15 Executive summary By the end of 2005‚ Saint-Gobain‚ a French leading
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PRINCIPLES OF VALUATION Because rational people prefer to receive benefits sooner than later and make sacrifices later than sooner‚ money‚ which provides the option to buy benefits‚ is likewise preferred sooner to later. If an individual prefers money sooner than later‚ then he/she values a dollar today more than a dollar tomorrow or a dollar in one year from now. A dollar today is worth a dollar today: therefore‚ a dollar next year must be worth less than a dollar today since it is less preferable/valuable
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Forecast of Revenue and Expense Besides Supply and Demand analysis which provides a general concept of measuring performance in the market share‚ revenues and expenses forecast gives the investors the overview of the future cash flow which reflects the return as the crucial metrics of the investment‚ helping investor to make a good decision. According to the proposal plan‚ the proposed hotel located in 22nd street will have following facilities: 238 hotel rooms‚ 53 off-street parking spaces in
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