COMM 370 – Elena Simintzi Practice for Lecture 1: Basic Financial Analysis Question 1. Consider the following financial statements for SubMart Corp contained in the company’s most recent annual report filed with the OSC. SubMart Corp Balance Sheet‚ December 31‚ 2012 Assets Cash Accounts receivable Inventories Property‚ plant & equipment Less accumulated depreciation Total assets Liabilities & Equity Accounts payable Accrued expenses payable Long-term debt Common stock Retained earnings Total
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International Corporate Finance Homework 1 1. Your younger brother has come to you for advice. He is about to enter university and has two options open to him. His first option is to study engineering. If he does this‚ his undergraduate degree would cost him $12‚000 a year for four years. Having obtained this‚ he would need to gain two years of practical experience: in the first year he would earn $20‚000‚ in the second year he would earn $25‚000. He then would need to obtain his master’s degree
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Mid-term I Review Questions 1. In December 1994 the government of Mexico officially changed the value of the Mexican peso from 3.2 pesos per dollar to 5.5 pesos per dollar. What was the percentage change in its value? Was this a depreciation‚ devaluation‚ appreciation‚ or revaluation? Explain. 2. Many people were surprised when Vietnam became the second largest coffee producing country in the world in recent years‚ second only to Brazil. The Vietnamese dong‚ VND or d‚ is managed against the
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000 • Question 2 7.692 out of 7.692 points Which of the following statements is CORRECT? Answer Selected Answer: A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed. • Question 3 7.692 out of 7.692 points A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%‚ and the FCFs are expected to continue growing at a 5%
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References: Argersinger‚ M. (2011)‚ How Companies Fake It (With Cash Flow)‚ Daily Finance. [Online] Available from http://www.dailyfinance.com/2011/07/27/how-companies-fake-it-with-cash-flow/ (Accessed on 12/12/2014) Bajpai‚ P (2014)‚ Goodwill vs Other Intangible Assets: What ’s the Difference? ‚ Investopedia.[online] Available from http://www
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of the following is NOT a major subaccount of the Balance of Payments? A) The financial account. B) The accounts payable. C) The capital account. D) The current account. 7. The balance of payments as applied to a course in international finance may be defined as: A) the amount still owed by an exporting
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FIN 101 Exam 1 Chapter 1 Commerce Bank Credit What does your credit card really cost you? APR- Annual Percentage Rate Prime 3.25% Amount: $51‚649 Rate: 4% Years: 4 = $60‚422.02 Time Value of Money- TVM Future Value FV=PV*(1+i)^n FV= future value PV= present value i= interest rate n= time The Rule of 72 If at 10%‚ it will take 7.2 to double (just divide 72 by 10) 72 DIVIDED BY ANY NUMBER is how long it will take to double Present value PV=FV/(1+i)^n
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Homework Assignment 4 FIN 202: Personal Finance D. Barber Professor Pogue 03/28/2013 Module 4 Homework I would recommend to my friend Steven Franklin to get the car checked out by professional to get an estimate on repairs. He must first see if it was equipment failure or installment failure. If it is in fact a malfunction of the stereo then I would have him call the company’s main office where they make
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all equity financed. The firm’s cost of equity the equals the WACC. As there are no taxes the firm’s WACC is independent of its capital structure and remains at 12%. WACC (post-transaction) = 12% = rE‚U * 1/1 => rE‚U = 12% b) (4 Points) In this case the debt-to-value ratio will increase to 0.5 (from 0.333 pre-transaction). If the debt remains riskless all the risk from
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Finance 1. How can changes in foreign exchange rates affect the profitability of financial institutions? Foreign exchange rate determines the price exchange of two currencies. Changes in these rates affects the amount of goods and services import and export of a country. When a country currency is stronger‚ it is now exchanged for more goods than before‚ and once the currency is weaker‚ less of goods are purchased for the same amount of the currency. Financial institutions use the exchange
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