...FIN111 Assessment 3 ‐ Report In recent years, the level of personal debt held by the average Australian has risen dramatically. This is largely the result of extremely low interest rates, low inflation and relatively easy access to debt. In addition, the rapid increase in house prices in recent years has led to larger average mortgages and has also provided those already in the market with access to a relatively cheap source of finance in mortgage equity loans. These have been used for a variety of purposes, including to invest, to purchase consumer assets such as boats and cars and even to fund holidays. A further issue is the continued love affair with credit cards and personal debt, such as those well-marketed ‘interest-free’ deals, which have attracted many consumers. This has been causing a deal of concern within government and other organizations. The RBA has suggested that this may even be influencing monetary policy. (a) Review recent publications to determine the extent of this problem. (b) Assess what the government is doing to curb this ‘spending spree’? Is there anything else that could be done? (c) Do you think this is a critical issue for the continued stability and growth of the Australian financial sector and general economic growth? SUMMARY This report aims personal debt in Australia which has risen to high levels in recent years. It has become a society problem may influence monetary policy. Through the comparison of the data, assess what the...
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...FIN111: Introductory Principles of Finance Spring 2015 – School of Accounting, Economics and Finance WEEK 3: Parrino et al chapter 1: Critical Thinking 2, 4 & 6; Questions and problems 4, 7, 8, 14 & 23; Kidwell et al chapter 1: Questions and problems 1, 4 & 6. Parrino et al Chapter 1 Critical Thinking 2. The primary financial management decisions every company faces are capital budgeting decisions, financing decisions, and working capital management decisions. Capital budgeting addresses the question of which productive assets to buy; thus, it affects the asset side of the balance sheet. Financing decisions focus on raising the money the company needs to buy productive assets. This is typically accomplished by selling long-term debt and equity. Finally, working capital decisions involve how companies manage their current assets and liabilities. The focus here is seeing that a company has enough money to pay its bills and that any spare money is invested to earn interest. 4. Although profit maximisation appears to be the logical goal for any company, it has many drawbacks. First, profit can be defined in a number of different ways, and variations in profit for similar companies can vary widely. Second, accounting profits do not exactly equal cash flows. Third, profit maximisation does not account for timing and ignores risk associated with cash flows. An appropriate goal for financial managers who do not have these objections is to maximise the shareholders’...
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...FIN111: Introductory Principles of Finance Spring 2015 – School of Accounting, Economics and Finance WEEK 3: Parrino et al chapter 1: Critical Thinking 2, 4 & 6; Questions and problems 4, 7, 8, 14 & 23; Kidwell et al chapter 1: Questions and problems 1, 4 & 6. Parrino et al Chapter 1 Critical Thinking 2. The primary financial management decisions every company faces are capital budgeting decisions, financing decisions, and working capital management decisions. Capital budgeting addresses the question of which productive assets to buy; thus, it affects the asset side of the balance sheet. Financing decisions focus on raising the money the company needs to buy productive assets. This is typically accomplished by selling long-term debt and equity. Finally, working capital decisions involve how companies manage their current assets and liabilities. The focus here is seeing that a company has enough money to pay its bills and that any spare money is invested to earn interest. 4. Although profit maximisation appears to be the logical goal for any company, it has many drawbacks. First, profit can be defined in a number of different ways, and variations in profit for similar companies can vary widely. Second, accounting profits do not exactly equal cash flows. Third, profit maximisation does not account for timing and ignores risk associated with cash flows. An appropriate goal for financial managers who do not have these objections is to maximise the shareholders’...
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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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