...* Question 1 0 out of 2 points | | | The interest rate that measures the true interest rate when compounding occurs more frequently than once a year is called the:Answer | | | | | Selected Answer: | compound rate of interest | Correct Answer: | effective annual rate | | | | | * Question 2 0 out of 2 points | | | The rate of interest actually paid or earned, also called the annual percentage rate (APR), is the ________ interest rate.Answer | | | | | Selected Answer: | nominal. | Correct Answer: | effective. | | | | | * Question 3 0 out of 2 points | | | When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is calledAnswer | | | | | Selected Answer: | future value. | Correct Answer: | compound interest. | | | | | * Question 4 2 out of 2 points | | | The present value of a $20,000 perpetuity at a 7 percent discount rate isAnswer | | | | | Selected Answer: | $285,714. | Correct Answer: | $285,714. | | | | | * Question 5 0 out of 2 points | | | For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factorAnswer | | | | | Selected Answer: | increases. | Correct Answer: | decreases. | | | | | * Question 6 2 out of 2 points | | | If $1,000 were invested now at a 12% interest rate compounded annually, what would...
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...Business Finance and the Capital Structure FIN 100 Strayer University August 4, 2014 Business Financing and the Capital Structure Small business can finance their firms through debt or through equity sources of capital. Debt sources typically include; short or long-term loans from wealthy individuals to banks, while equity sources often include the owner’s wealthy individuals and/or Angel Networks. Venture capital is not a typical source of equity financing for most small business, as these businesses will not have the required growth potential Venture Capitals need to manage their risk return requirements. Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash. The financial planning process has eight specific steps. The financial planning process is the firms attempt to forecast the future, both the long and short-term future for sales, expense and etc. Using eight domains better captures the sophisticated nature of planning. Here are the eight steps in the Financial Planning Process: 1. Establish and Defining the Client-Planner Relationship. 2. Gathering Information Necessary to Fulfill the Engagement. 3. Analyzing and Evaluating the Client’s Current Financial Status. 4. Developing the Recommendations. 5...
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...Assignment #1 Dr. Pete McDaniel Principles of Finance-FIN100 November 16, 2010 Explain why market prices are useful to a financial manager? The Valuation Principle states that we can use the current market prices to determine the value today of the different costs and benefits associated with a decision. A financial manager’s job is to make decisions on behalf of the firm’s investors; it also involves using skills from marketing to determine the increase in revenues resulting from advertising campaigns. Economics determine the increase in demand from lowering the price of a product, organizational behavior is used to determine the effect of changes in management structure on productivity, strategy is used to determine a competitors response to price increase, and operations are used to determine production costs after the modernization of a manufacturing plant. The financial manager’s job is to compare the cost and benefits and determine the best decision to make for the value of the firm. Discuss how the Valuation Principle helps a financial manager make decisions. The Valuation Principle helps a financial manager make decisions by the value of commodity or an asset to the firm or its investors is determined by its competitive market price. The benefits and costs of the decision should be evaluated by using those market prices, when the value of the benefits exceeds the value of the costs, the decision will increase the market value of the firm. ...
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...Assignment 1: Complexities of the U.S. Financial System Brandi Hays Professor Umair Warsi FIN100 February 1, 2015 The impact of the US financial markets on economy is quite high. This is because of all the major companies that are listed in the Stock Market contribute towards the economic growth of the country. When their performance deteriorates, their overall rating in the Stock Market suffers a downward trend. Thus, it produces a negative impact on the US economy. Though, in some cases, the dynamics of the Stock Market has its own issues and does not produces any impact on the economy. When the global financial crisis occurred in the USA in 2008, the overall Stock Market crashed which showed a negative trend of the economy. Therefore, these issues reflect the impact of US financial markets on economy. The impact of the US financial markets on the businesses is even there. When the overall position of the market is favorable, the businesses experience a positive impact. Though, this is not a usual case because some businesses flourish purely on the basis of their performance not on the basis of Stock Market position. When the US financial markets perform well, the individuals in an economy also have confidence in many aspects. They are not hesitant to spend money on the goods and are able to borrow money from the banks in order to have various types of expenditures. In some cases, the negative position of the US markets discourages the consumer to spend money...
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...Business Financing and the Capital Structure of the Federal Reserve Strayer University Principles of Finance (FIN100) Abstract This paper will describe one way the US financial markets impact the economy. How the US financial markets impact businesses and one way that they impact individuals. Providing a brief explanation of the primary roles of the US Federal Reserve, the Federal Reserve Chairman, and the Federal Reserve Board. Explaining the ways that interest rates influence the US and global financial environment. We will also give an example of influence for both the US financial environment and one example of the global environment. The Federal Reserve System or Federal Reserve is the central banking system of the United States (US). Congress established this system in 1913 to provide America with an organized, secure, flexible monetary and financial system. This essentially creates stability by balancing systematic risks; according to the Federal Reserve website. There are a total of 12 Federal Reserve Banks located in major cities throughout the US. The banks generate their income based on services provided to other banks, interest accrued on government security bonds and interest accrued on loans and deposits. Each of the aforementioned generates income which is circulated back into the US Treasury. As mentioned in Investopedia, “The Fed’s mandate is to promote sustainable growth, high levels of employment, stability prices to help preserve the purchasing power...
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...Assignment #2: Business Financing and the Capital Structure Marquis C. Saddler Professor Jason Powers FIN100 December 1, 2013 Business Financing and the Capital Structure Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash. A corporation having a financial plan in place to estimate its assets investment requirement is important. It’s important because their assets can be used as an advantage for securing loans and can be used to calculate their ability to repay debts. A corporation’s sales are a key compelling force of future asset requirements. As sales steadily increase it creates a need for increase in assets. In other words, asset needs have a propensity to stem from sales increases. For example, if you were to estimate that sales for a corporation will be $40million for a given year, and it is know that in that specific industry that assets have a propensity to be about 40% of sales, then you could estimate that the corporation’s asset requirement will be $16million (40% x $40,000,000). Another good way to estimate asset requirements is to use the percentage-of-sales technique, which is a technique use for forecasting financial data. “Working capital refers to that part of the firm’s capital, which is required for financing short-term...
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...Free eChapters (FALL 2012) eChapters offer students immediate access to the first few chapters of their textbooks while they are waiting for the print book to arrive. eChapters help students to keep up with required reading and assignments until they receive their course material, without having to pay expedited shipping costs. eChapters that are available from the publisher are attainable free of charge. How do students gain access to free eChapters? Not all courses or textbooks have eChapters available. For all courses where eChapters are available, the files are located in the student’s Blackboard course shell under the Student Center. Below is a list of courses with eChapters loaded into the course shells, giving students free access as of the first day of classes. * = eChapters are forthcoming Course ID ACC100 ACC206 ACC303 ACC304 ACC305 ACC306 Text Title Accounting Principles – 9th edition Accounting Principles – 9th edition Intermediate Accounting 14e Intermediate Accounting 14e Intermediate Accounting 14e Microcomputer Applications for Accounting Excel 2010 Microsoft® Excel 2010: A Case Approach, Complete, 1st Edition, copyright 2011 SOUTH WESTERN FEDERAL TAXATION 2012: COMPREHENSIVE, 36th ed. South-Western Federal Taxation 2013: Corporations, Partnerships, Estates and Trusts, 36th Edition Cost Accounting 13th 09 ed. Advanced Accounting 4th 10th ed. Auditing & Assurance Services 13th 10 ed. Core Concepts of Government and Not for Profit Accounting 2nd ed., 2011 ed ACC...
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