...FIN 534 Homework for Chapter 3 1. Which of the following statements is CORRECT? a. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio. b. If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. c. An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio. d. An increase in the DSO, other things held constant, could be expected to increase the ROE. e. An increase in a firm’s debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin. 2. Companies HD and LD have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company HD has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? f. Company HD has a lower equity multiplier. g. Company HD has more net income. h. Company HD pays more in taxes. i. Company HD has a lower ROE. j. Company HD has a lower times interest earned (TIE) ratio. 3. Companies HD and LD have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on their debt. However, company HD has a higher debt ratio. Which of the following statements is CORRECT? k. Given this information, LD must...
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...Impact of Profitablity on Growth: consumer packaged goods (CPG) INTRODUCTION Economic recovery remains vulnerable on all fronts a top-performing company analysis Getting on the global map Introduction Sales and income growth can be expected to influence rate of return and market value measures in both simulated and actual industries. It is unclear if growth in one year will affect profitability and market value measures in a succeeding year in simulated and actual environments. Asset growth, which can be used as a proxy for plant and equipment expenditures, and research intensity, may also affect sales and income growth in a base year or succeeding year, indirectly affecting profitability and market value. These direct and indirect effects may be different in simulated and actual industries, but if students are to learn from simulations there should be a reasonable correspondence between variable effects in simulated environments and real world industries. Recently, value based planning and performance measurement has been receiving more attention in business literature and in actual practice, since it provides a framework for using firm value as a strategic performance measures and focuses on profitability and growth as determinants of firm value (Varaiya, Kerwin, and Weeks, 1987). Many analysts and company executives believe that shareholder value (e.g., stock appreciation + dividends) is a better measure of long term corporate performance than accounting...
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...PROJECT WORK -- GUIDELINES 1.1 WHY PROJECT WORK? Project Work is the best way to practice what you have learnt. The purpose of including project report in the Diploma Programme is to provide you an opportunity to investigate a problem applying management concepts in a scientific manner. It enables you to apply your conceptual knowledge in a practical situation and to learn the art of conducting a study in a systematic way and presenting its findings in a coherent report. As managers, you are constantly seeking information to base your decision. How well you collect, synthesize and make the data meaningful is what you learn through this process. 1.2 WHAT IS A PROJECT? A project is a scientific and systematic study of real issue or a problem intended to resolve the problem with application of management concepts and skills. The study can deal with a small or a big issue in a division or an organization, the problem can be from any discipline of management. It can even be a case study where a problem has been dealt with through the process of management. The essential requirement of a project is that it should entail scientific collection, analysis and interpretation of data leading to valid conclusions. 1.2.1 How to undertake Project Work? Step I – Select a suitable topic, prepare synopsis and submit it online to IMT - CDL, Ghaziabad for approval. Step II – Once the approval is received you can start project work. Thereafter project report should be prepared and...
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...On-Line Web Based E-Grade Exam Management System Introduction: This Aim of this project is to produce an On-Line Web Based Exam Management System to help in the exam marks submission and the generation of the final results. The system would also be used to aid in preparing course mark reports to be presented before the examination board meeting for discussion and approval. When module tutors have all marks ready, they submit the marks for the module components to the system. Once they are in the system and after ratification by the exam board, the marks may be made available for students for viewing below Functional requirements. Web-based Application Functional Requirements: * On-line EMS System deals with all kind of student details, academic related reports, course details, curriculum, batch details and other resource related details too. * This program can facilitate us explore all the activities happening in the college, even we can get to know which teacher / faculty is assigned to which batch, the current status of a batch, attendance percentage of a batch and upcoming requirements of a batch. * Different reports and Queries can be generated based of vast options related to students, batch, course, teacher / faculty, exams, semesters, certification and even for the entire college. * Extensive information is available at your fingertips through this System. Viewing student data, managing admission and reshuffling ,managing seats, quota, board, semester...
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...Introduction: Economic growth and development of any country depends upon a well-knit financial system. Financial system comprises, a set of sub-systems of financial institutions financial markets, financial instruments and services which help in the formation of capital. Thus a financial system provides a mechanism by which savings are transformed into investments and it can be said that financial system play an significant role in economic growth of the country by mobilizing surplus funds and utilizing them effectively for productive purpose. The financial system is characterized by the presence of integrated, organized and regulated financial markets, and institutions that meet the short term and long term financial needs of both the household and corporate sector. Both financial markets and financial institutions play an important role in the financial system by rendering various financial services to the community. They operate in close combination with each other. Financial System; |[pic] | The word "system", in the term "financial system", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy. The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial...
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...Demystifying T 20 The Milken Institute Review The Merriam-Webster dictionary defi nes a derivative in the fi eld of chemistry as “a substance that can be made from another substance.” Derivatives in fi nance work on the same principle. These fi nancial instruments promise payoffs that are derived from the value of something else, which is called the “underlying.” The underlying is often a fi nancial asset or rate, but it does not have to be. For example, derivatives exist with payments linked to the S&P 500 stock index, the temperature at Kennedy Airport, and the number of bankruptcies among a group of selected companies. Some estimates of the size of the market for derivatives are in excess of $270 trillion – more than 100 times larger than 30 years ago. When derivative contracts lead to large fi nancial losses, they can make headlines. In recent years, derivatives have been associated with a few truly notable events, including the collapses of Barings By René M. Stulz Financial Derivatives Third Quarter 2005 21 Bank (the Queen of England’s primary bank) and Long-Term Capital Management (a hedge fund whose partners included an economist with a Nobel Prize awarded for breakthrough research in pricing derivatives). Derivatives even had a role in the fall of Enron. Indeed, just two years ago, Warren Buffett concluded that “derivatives are fi nancial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.” michael...
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...C To: Financial Aid Committee Aloha, this letter is regarding the suspension of my financial aid. I am shocked to hear that my financial aid has been put on suspension. The reason it has been put on suspension, was because of the grade I received for my Intro to Communications class I took in spring 2013. After reading this letter of explanation I hope you will reconsider my suspension. I had the opportunity of taking this college class through a high school program I was in called Academy of Hospitality and Tourism. Only a selected few are able to take part in this program. They have to maintain a high GPA, and have a good attendance record. I met all those requirements and was able to take part in this program. Our senior year, this program allowed us to take skip our last period of the day and attend a college class. We were able to gain the college experience and get ahead. So I was taking a college class while still attending high school. I was doing very well in all my classes, I attended my classes everyday met all deadlines. I did really well in class. But towards the middle of the semester my parents had got a disturbing phone call from Sri Lanka. They were told that my grandmother was in the hospital, and that she was very ill. Family in Sri Lanka told us that we should “visit before it’s too late” My grandmother had a stroke several years ago, and lost her speaking ability. So it’s been hard for my parents not being able to see her every day. Listening to...
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...Current Economic State Essentials of Personal Finance Keyshunda Howard University of Phoenix November 18, 2012 Abstract As I began my research I found chief economist Jan Hatzius of the Global Investment Research talk about how the economy is expanding but at a slow rate. The current prime rate for the Wall Street Journal was reported to be 3.25% as of November 14, 2012. The Federal Discount Rate was 0.75,% and the 11th District Cost of Funds was at 1.038 and all of these were updated on the 14th of November. The current interest rates on a fixed credit card stand at 14.0%2 and variable credit cards interest rates are reported to be 14.59%. The United States unemployment rate has increased to 7.9% percent as of October of 2012. As for the state of Alabama the unemployment rate has dropped to 8.1%. The inflation rate had dropped down to 2.16% compared to what it was a year ago. The Gross Domestic Product was at 15775.7% as of November 14, 2012. Based on my study the different rates of the economy can influence a personal financial choice because it can help a person with their planning when it comes to buying a home, a car, or even starting a family. It is good to have credit cards but it is very important to know what the different rates are. When knowing what the rates are can help a person when it comes to buying thing...
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...Abstract This paper will analyze if the practice of earnings management through the use of deferred maintenance is ethical. The paper will analyze if the practice of earnings management through the use of deferred maintenance is allowed in the United States. This paper will analyze how United States generally accepted accounting principles (GAAP) differ in the treatment from International GAAP. Ethics is basically being able to distinguish between right and wrong. When I was in the Army, ethics was defined as simply doing what is right even when no one is looking or checking. Ethics in accounting is a form of professional ethics. The nature of the work done in accounting can affect the livelihood of all those connected to a business. Accurate and ethical accounting practices are crucial to a company. Earnings management is a process in which companies manipulate earnings to match a pre-determined target amount. The purpose is known as “income smoothing” and the intent is to keep earnings stable over a period of time (Investopedia, 2014). Practices like a company’s use of reserves for deferred maintenance are also known by the disingenuous accounting practice called cookie jar accounting or reserves (Investapedia, 2014). This practice is not ethical because it misleads investors on the company’s performance if there is not full disclosure of the company’s financial picture. In the United States, the SEC typically does...
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...Ivan VargheseLauve – 6 th 2/18/07 Comparison Essay: Bless Me Ultima & The Secret Life of Bees They need to find their path in life. They have to struggle betweengood and evil. They must reclaim their past to discover their future. Antoniofrom Bless Me Ultima and Lily from The Secret Life of Bees both faceproblems but in the end, the light at the end of the tunnel shines. Althoughthere are similarities between Bless Me Ultima and The Secret Life of Bees there are, obviously, notable differences. The similarities are pretty apparent between the two books. They areboth a “coming-of-age” story and they both have a couple of plot parallels.For example, Antonio has to find his true calling and Lily has to follow hermother’s past. In both books, mentions of religion are very widespread.Religion is one of the most important factors in the books and it influencesthe story a lot. Another noted similarity is the use of allusions, metaphors,and imagery.Even though there are many similarities, there are some very strikingdifferences. The most noted of them is the difference of the gender in thenovel. Bless Me Ultima , is geared towards all readers, but The Secret Life of Bees is generally a girl’s novel. For example, in The Secret Life of Bees , Lilyfalls in love with Zachary but in Bless Me Ultima , Antonio is not shown to bein love. Also, The Secret Life of Bees takes on more feminine topics. In BlessMe Ultima , Antonio is faced with a decision that will alter...
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...Financial Data Analysis Tammy L. Wilson HCS/577 July 15, 2015 Tricia Jenkins After going over the balance sheet for Patton-Fuller Hospital for the year of 2008-2009, I observed there to be significant differences, these stand- out such as the such as the retained earnings ( or “Net Worth” or “Unrestricted Fund Balance”) drastically decreased from 2008-2009 (Apollo Group 2006). The dollar amount of the decrease is -209,407 this bringing the percentage to 65%. The long- term debt rises to 116% from 2008-2009 as well (Apollo Group 2006). This is very huge increase, along with the total current liabilities increased as a whole by 184.09% (Apollo Group 2006). In the documents of the statement of revenue and expenses there are major differences. The operating income decreased by 98% from 2008-2009 (Apollo Group 2006). Also the net income decreased between the years of 2008-2009, this was also by 98%. Non-operating income was dropped by 77%. From what I observed the total revenue and expenses were all with-in the normal range even though the operating income, non-operating, and net income all have declined and by a very noticeable rate (Apollo Group, 2006). It had a total revenue that had grown by 10%, which equals to $41,668.00. The increase...
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...Week 1 Financial Terms and Roles FIN370 January 14, 2014 Week 1 Financial Terms and Roles 1) Finance Finance is considers the management of how income acquired and used. Whether dealing with corporate or personal issues, finance may consist of how individual or business acquires, invest, and manage money. Financial decisions are the role finance plays, which consist of money as the resource and how and the source of how the organization obtain the revenue. 2) Efficient Market Efficient markets are a hypothesis that prices in a market are continually fair. This consists of incorporated market prices reflecting associated information completely. Keeping values current is the role efficient markets play by keeping market price fair and prohibiting anyone to make a high returns unless he or she buys a much high risk investment. 3) Primary Market A primary market is a marketplace where securities are distributed for the first time. The government, businesses, and other groups issue debt or equity-based securities permissible to raising finance. In primary market prices are the same for every buyer; however, investors in a primary market do not purchase securities from other investors. 4) Secondary Market A Secondary Markets is a marketplace where securities that already issued are sold or purchased by investors. Prices in a secondary market vary from the issue price and prices can vary from the original cost, although prices are affected by market sentiments...
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...[pic] MIDLANDS STATE UNIVERSITY DEPARTMENT OF MARKETING MANAGEMENT MODULE: MARKETING OF FINANCIAL SERVICES (MMRK812) [pic] LECTURE NOTES CHAPTER 1: AN OVERVIEW OF THE FINANCIAL SERVICES SECTOR IN ZIMBABWE 1. Introduction Zimbabwe’s financial sector is relatively sophisticated and consists of the Reserve Bank of Zimbabwe (RBZ) at the apex of banking institutions, commercial banks (e.g. CBZ, NMB, FBC, ZB, MBCA, Kingdom, Trust, Stanbic, Barclays, Chanchart), merchant banks, building societies (e.g. CABS, CBZ building society, FBC building Society etc), the People’s Own Savings Bank (POSB), insurance companies (e.g ZIMNAT, NICOZ DIAMOND, Old Mutual, First Mutual, Nyaradzo), pension funds (e.g Allied workers pension fund, NRZ pension fund), asset management companies (Imara and Edwards), developmental financial institutions, the Zimbabwe Stock Exchange (ZSE), microfinance institutions (e.g MicroKing) and money transfer agencies (e.g Western Union, Moneygram, Homelink). Discount and finance houses have closed and their functions taken by commercial and merchant banks. The growth of the financial services sector is largely attributed to the financial liberalization of the early 1990s, through the Economic Structural Adjustment Programme (ESAP). 2. Structure of the banking sector Number of operating banking institutions (including POSB) declined to 25 from 26 following the voluntary surrender of a banking license by Genesis Investment...
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...Company Overview Six Flags Entertainment Corporation (Six Flags), incorporated on December 09, 1997, owns and operates regional theme, water and zoological parks. As of the December 31, 2011, of the 18 parks the Company owned or operated, 16 are located in the United States, one is located in Mexico City, Mexico and one is located in Montreal, Canada. Its diversified portfolio of North American theme parks serves an aggregate population of approximately 100 million people and 160 million people within a radius of 50 miles and 100 miles, respectively, with some of the highest per capita gross domestic product in the United States. During the year ended December 31, 2012, the Company’s parks offered approximately 800 rides, including over 120 roller coasters, making the Company the provider of thrill rides in the industry. Assets Six Flags current assets include cash and cash equivalents of $629,208 million, trade accounts receivable of $29,523 million, inventories of $22.280 million, and prepaid expenses of $37.49 million and other current assets of $44.973 million. Total current assets are $763,474 million. Other assets include, debt insurance costs, $26,043, restricted-use investment securities, $1,218 million, deposits and other assets, $4,214 million. Total other assets are $31,475. Six Flags has property, plant, and equipment gross after accumulated depreciation of $1254.629 million, goodwill of $630.248 million, intangible assets of $376.565 million. Six Flags...
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...ST – PATRICKS INTERNATIONAL COLLEGE Managing Financial Principles & Techniques UNIT CODE: 13 Evaluation of the financial returns of a Mill House Hotel at Little Hallingbury Mill. Student ID: 109794 . . Method of analysis Financial model of the business – structure Fixed cost and overheads Marginal contributions from profit centres Cash flow forecasts Data requirements Data resources Analysis of data Results analysis Conclusions Appendices Spread sheets Original advertisement References BACKGROUND A licenced hotel for sale, located at Little Hallingbury Mill, in a pretty rural setting next to a colourful narrow boat marina and on the path of several attractive riverside walks. The location of the hotel is about 5 miles from the Stansted Airport, 3 miles from Bishop`s Stortford, 6 miles from Harlow, 1.5 miles from Sawbridgeworth. The mill is a grade 2 star listed building of historic significance in the local area and has the mill machinery as a centre piece. The Mill contains 10 lettable bedrooms, office and living accommodation, bar/bistro reception and a pretty 40 cover restaurant at 1st floor level. The mill house is next door and provides 12 further bedrooms; two of the rooms are used for staff accommodation. The premises benefit from both a private car park capable of accommodating more than 25 vehicles and fishing rights in the Mill stream. The hotel is very well positioned to benefit...
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