...Solutions for Selected Problems in Chapter 2 1. To find owner’s equity, we must construct a balance sheet as follows: Balance Sheet CA $5,100 CL $4,300 NFA 23,800 LTD 7,400 OE ?? TA $28,900 TL & OE $28,900 We know that total liabilities and owner’s equity (TL & OE) must equal total assets of $28,900. We also know that TL & OE is equal to current liabilities plus long-term debt plus owner’s equity, so owner’s equity is: OE = $28,900 – 7,400 – 4,300 = $17,200 NWC = CA – CL = $5,100 – 4,300 = $800 5. To find the book value of current assets, we use: NWC = CA – CL. Rearranging to solve for current assets, we get: CA = NWC + CL = $380,000 + 1,400,000 = $1,480,000 The market value of current assets and fixed assets is given, so: Book value CA = $1,480,000 Market value CA = $1,600,000 Book value NFA = $3,700,000 Market value NFA = $4,900,000 Book value assets = $5,180,000 Market value assets = $6,500,000 11. Cash flow to creditors = Interest paid – Net new borrowing Cash flow to creditors = Interest paid – (LTDend – LTDbeg) Cash flow to creditors = $170,000 – ($2,900,000 – 2,600,000) Cash flow to creditors = –$130,000 12. Cash flow to stockholders = Dividends paid – Net new equity Cash flow to stockholders = Dividends paid – [(Commonend + APISend) – (Commonbeg + APISbeg)] Cash flow to stockholders = $490,000 – [($815...
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...CHAPTER 9 – CHARACTERIZING RISK AND RETURN Questions LG1 1. Why is the percentage return a more useful measure than the dollar return? The dollar return is most important relative to the amount invested. Thus, a $100 return is more impressive from a $1,000 investment than a $5,000 investment. The percentage return incorporates both the dollar return and the amount invested. Therefore, it is easier to compare percentage return across different investments. LG2 2. Characterize the historical return, risk, and risk-return relationship of the stock, bond and cash markets. Examining Table 9.2, it is clear that the stock market has earned about double the return since 1950 than bonds. Bonds have earned about 50% higher return than the cash markets. The risk in the stock market is also higher than the bond and cash markets according to the standard deviation measurement (Table 9.4). Another illustration of the high risk is that the stock market frequently losses money and sometimes does not earn more than the bond and cash markets over short periods of time (Table 9.2). The risk-return relationship tells us that we should expect higher returns for the riskier market. We do see higher realized returns over the long term to the higher risk asset classes. LG3 3. How do we define risk in this chapter and how do we measure it? Risk is defined as the volatility of an asset’s returns over time. Specifically, the standard deviation of returns is used to measure...
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...Does your career plan include a world of lifelong success? Program of Professional Studies THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA We see more than numbers. Choose a career that places you on the path to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected...
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...COLLEGE OF BUSINESS ADMINISTRATION Course Code: BFIN 431 Course Title: Management of Banks & Other Financial Institutions Semester: Fall Academic Year: 2014 - 2015 Assessment Instrument: Individual Assignment 1 Due Date:15/10/2014 Course Instructor: Dr. Imen Kouki This instrument assesses the following Course Learning Outcomes (CLO): Tick | Course Learning Outcomes (CLO) | Questions | Marks | □ | 1. Define intermediation functions of banks & other FI and discuss their key operations | 1 | /4 | □ | 2. Illustrate how banks & FI are evaluated in UAE/GCC | 2-4 | /16 | Total from 20 | | /20 | Student Name: ........................................................................................ Student ID No: ........................................................................................ Note: In-class, assessment will be conducted on Sunday, October 19, 2014, 7:00-7:30pm in class. Solve the following questions 1a. Discuss the different functions of FIs. (2points). 1b. Why are FIs among the most regulated sectors in the world? (2points). 2. A financial institution has the following balance sheet structure of Emirates NBD (7points): Assets (millions of AED) | Liabilities and Equity (millions of AED) | 1 | Short-term consumer loans (one-year maturity)- floating-rate | 150 | 1 | Equity capital | 160 | 2 | Long-term consumer loans fixed-rate | 125 | 2 | Demand deposits (two-year maturity-...
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...BFIN 4253 – ADVANCED CORPORATE FINANCE “Cartwright Lumber” Case Assignment Case: “Cartwright Lumber Co.” HBS Case #9-204-126, Rev 3/04. Main Question: As Mr. Cartwright’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? • He should take the LOC and use trade discounts o Satisfies fund requirement o No collateral o More flexible trade credit limit Additional Questions: 1. Why does Mr. Cartwright have to borrow so much money to support his profitable business? • needs to sustain business and grow in the coming year • increase in inventory and accounts receivable, has not been able to generate cash and A/R ratio and inventory ratio shows taking longer to collect money and holding inventory for longer period • Internal growth rate – 4.72% (44/933) end of 2003 o highest level of growth can achieve without outside financing • Firms sales total growth of 33% o sales are growing almost 10 times faster than internal growth would allow • Sustainable growth rate is highest growth a firm can sustain without the need to increase its financial leverage o Takes into account existing external financing it already has o 12.6% (44/348) much lower than its increasing sales 2. Do you agree with Mr. Cartwright’s estimate of the company’s loan requirements? How much will he need to finance the expected expansion of sales to $3.6 million in 2004? • Yes ...
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...BFIN 2123 Assignment The banking industry crisis addressed in the “Bad Bank” podcast was primarily a “balance sheet” problem. In its most basic form, the dilemma that was faced and that served as a catalyst of the crisis was the inability of banks to cover their liabilities with their troubled assets. This led to an imbalance in the balance sheet where liabilities (initial capital and deposits) significantly exceeded assets (loans or foreclosed assets at a diminished market value) resulting, in many cases, in insolvency. The problem arose from unjustified lending practices which led to unqualified consumer mortgages that were defaulted upon, leading to the inability of deposits and capital to match the foreclosed assets which had a diminished value compared with that of when the loan was commissioned. Furthermore, the perception of the banks and federal government that the market was nearing a turnaround led to a cyclical worsening of the crisis since balance sheets sustained an inflated market value of the toxic assets as the government was slow to intervene while allowing the banks to continue this inaccurate accounting practice. Federal initiatives such as TARP would only serve to defer the burden from the banks to the taxpayers, thus contributing to the severe financial crisis faced in 2008. The Citibank and hypothetical “dollhouse” examples both demonstrate the aforementioned erroneous balance sheet issues. The former displays how a major player in the banking industry...
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...UNIVERSITY OF LUSAKA NAME: NDULA SICHALWE COURSE: ICT STUDENT NO: BFIN 0512014 PROGRAMME: BANKING AND FINANCE ASSIGNMENT: 1 1.(a) In plain words ‘E-commerce’ is simply Electronic commerce. E-commerce is the buying and selling of goods and services by businesses and consumers through an electronic medium. Below are three models of Electronic commerce; • Business-to-Business(B2B) – In this type electronic commerce, the trade is only between businesses or other organisations. An example of B2B is Cisco. Cisco is a corporation that designs, manufactures and sells networking equipment,. Cisco trades with other businesses and organisations. • Business-to-Consumer(B2C) – This type of electronic commerce involves a business and an individula shopper. Businesses sell goods and products to individual shoppers(Consumer). An example of B2C is Amazon. Amazon is a E-commerce company that deals with online retailing. Sells to consumers. • Consumer-to-Consumer(C2C) – In this model electronic commerce, the trade off is done between consumers directly. An example of C2C is e-bay. E-bay is an E-commerce corporations that enables C2C (b) Internet The Internet is a ‘Network’consisiting of a worlwide interconnection of computer networks that facilitate data transmission and exchange. As organisations grow larger...
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...Accredited Tertiary Courses Listing 2012 Accredited Tertiary Courses Listing 2012 – as at 26 September 2012 1 2012 Accredited Undergraduate Courses AUSTRALIAN CAPITAL TERRITORY The Australian National University University of Canberra NEW SOUTH WALES Australian Catholic University Australian Institute of Higher Education Avondale College Charles Sturt University Kings Own Institute Macquarie University Southern Cross University Top Education Institute The University of New England The University of New South Wales The University of Newcastle The University of Sydney University of Technology, Sydney University of Western Sydney University of Wollongong Williams Business College NORTHERN TERRITORY Charles Darwin University QUEENSLAND Australian Catholic University Bond University Central Queensland University Christian Heritage College Griffith University James Cook University Queensland University of Technology The University of Queensland The University of Southern Queensland University of the Sunshine Coast SOUTH AUSTRALIA Flinders University Kaplan Business School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT...
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...HISTORY: PACKAGES Ltd is the among the most prestigious, versatile and advanced companies of Pakistan. It is surely the market leader when it comes to providing packaging solutions. With the best business practices and most modern systems deployed, Packages Ltd is on top of the market. Packages Ltd. is an industrial organization manufacturing packaging material which provides services for other industries. Its business is to provide packaging materials for the products of different industries. It also produces all types of tissues available in the local market as well as for export purposes. There are more than 3000 employees working in the company. Packages Limited has had a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging equipment. Packages commissioned its own paper mill with a production capacity of 24,000 tonnes in 1968. The mill produces paper and paperboard based on waste paper and agricultural by-products like wheat straw and river grass. With growing demand the capacity was increased periodically and in 2003 was nearly 100,000 tonnes per year. In the beginning 22 Swedish Experts came to Pakistan to run the factory and to train the Pakistani staff. Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and Paperboard into packaging for consumer industry in 1958...
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...Manajemen Investasi Sektor-Sektor Pasar Modal Indonesia Oleh: Yosefina Selvy Arief(2012-012-093) SEKTOR-SEKTOR PASAR MODAL INDONESIA Semua perusahaan publik yang tercatat di Bursa Efek Indonesia atau BEI (dulu BEJ= Bursa Efek Jakarta) diklasifikasikan ke dalam 9 sektor BEI yang didasarkan pada klasifikasi industri yang ditetapkan oleh NEJ yang disebut JASICA (Jakarta Stock Exchange Industrial Classification). Kesembilan sektor tersebut adalah: A. Sektor Utama (Industri Penghasil Bahan Baku) 1. Sektor Pertanian 2.1. Sub sektor Tanaman Pangan Daftar perusahaan industri penghasil bahan baku, sektor pertanian, sub sektor tanaman pangan yang terdaftar di Bursa Efek Indonesia (BEI) adalah No | Kode | Nama | Tanggal | | Saham | Emiten | IPO | 1 | BISI | Bisi International Tbk | 28-Mei-2007 | (Diperbaharui 2 Oktober 2013) Catatan penting lainnya untuk sub sektor tanaman pangan : * 12 September 2013| CKRA (PT. Citra Kebun Raya Agri Tbk) pindah dari sektor tanaman pangan (kode sektor 1.1) ke sektor pertambangan logam dan mineral lainnya (kode sektor 2.3) 2.2. Sub sektor Perkebunan Daftar perusahaan industri penghasil bahan baku, sektor pertanian, sub sektor perkebunan yang terdaftar di Bursa Efek Indonesia (BEI) adalah No | Kode | Nama | Tanggal | | Saham | Emiten | IPO | 1 | AALI | PT. Astro Agro Lestari Tbk | 09-Des-1997 | 2 | ANJT | PT. Austindo Nusantara Jaya Tbk | 10-Mei-2013 | 3 | BWPT | PT. BW Plantation...
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...| | | SCHOOL OF BUSINES Project on: Balance of Payments Prepared By: Hassan ajami, Mansour daher, reda younes,ali Mohsen, Mohammad kanso Submitted To: Dr. habib awada Course BFIN 430 (International Banking & Finance). Spring 2013-2014 TABLE OF CONTENTS 1- INTRODUCING THE BOP CONCEPT: 1.1) Brief History 5 1.2) Basic Definition 5 1.3) System of Recording 7 1.3.1) Identifying Transactions 7 1.3.2) The Debit & Credit System 9 2- GENERAL STRUCTURE OF THE BOP: 2.1) Main Components 12 2.1.1) Current Account 12 2.1.2) Trade Balance 15 2.1.3) Capital Account 16 2.1.4) Financial Account 18 2.1.5) Errors & Omissions 22 2.2) Complications 23 2.2.1) Accounts Interrelation 23 2.2.2) Deficit & Surplus Dilemmas 25 3- BOP FROM EQUILIBRIUM TO DISEQUILIBRIUM 3.1) BOP in Equilibrium 27 3.1.1) Equilibrium Conditions 27 3.1.2) Equilibrium Model 27 3.1.3) Types of Equilibrium 29 3.2) BOP in Disequilibrium 29 3.2.1) Causes of Disequilibrium 29 3.2.2) Types of Disequilibrium 32 3.2.3) Consequences of Disequilibrium 33 3.2.4) Measures to Eliminate Disequilibrium 33 3.2.5) Demonstrating Disequilibrium 35 4- STUDYING THE LEBANESE BOP 4.1) Historical Events: 1999 and before 37 4.2) Major Events of the Decade: 2000-2008 38 4.3) Recent Events: 2009-2010 40 5- CONCLUSION Importance of BOP 44 1- INTRODUCING...
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...IDX STATISTICS 2012 The IDX Statistics Book includes comparative statistics on all aspects of trading and listing for January - December 2012 For more information please contact the Corporate Secretary at: Gedung Bursa Efek Indonesia (Indonesia Stock Exchange Building) Tower 1 Jln. Jend. Sudirman Kav. 52 - 53 Jakarta 12190 Indonesia Phone: (62-21) 515-0515 ext. 4302, 4320, 4322 Fax (62-21) 515-0330, 515-0118 Compiled by Research Division © 2012 Indonesia Stock Exchange. All rights reserved The facts and opinions stated or expressed in this publication are for information purposes only and are not necessarily and must not be relied upon as being those of the publisher or of the institutions for which the contributing authors work. Although every care has been taken to ensure the accuracy of the information contained within the publication, it should not be by any person relied upon as the basis for taking any action or making any decision. The Indonesia Stock Exchange cannot be held liable or otherwise responsible in anyway for any advice, action taken or decision made on the basis of the facts and opinions stated or expressed within this publication. Table of Contents IDX STATISTICAL HIGHLIGHTS ............................................................................................................................... 1 STOCK PRICE INDICES Composite Stock Price Index - Highlights ..........................................................
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