...N, i%, PV, PMT, FV, CHS (-ve), g=BEG, g=END, CL Ch 3&4- Time Value of Money 1. –Future Value:Amount into which an investment 2. will grow after earning interest for a given period 3. of time. 4. 1. Single Cashflow: * - Compounding to FV = PV(1 + i%)n * - Discounting to PV = FV (1 + i%)- n * 2. Annuities:Series of EQUAL CFs at regular * periods/Intervals. * -Special case: Bonds/Loans(personal, business, * mortgages)/ Life insurance. * - Ordinary Annuity [OA]: Annuity with 1st CF * starting at the END of Period 1 (Compounding * Period). 0 1 3 2 PV FV END Period 1 $100 – 1st CFs $100 $100 * * * * * An investor pays equal instalments of $100 at the end of each period for 3 years, into a savings account which yields 12% per year, compounded annually. What is the value of the investment today? An investor borrows $5,000 today for 3 years at a rate of 12% per year, compounded annually. How much are his annual repayments? -Annuity Due[AD] : Annuity with 1st CF at the BEGINNING of Period 1. 0 1 3 2 PV- BEGINNING FV Period 1 $100 – 1st CFs $100 $100 PVA due = PVA ordinary x (1 +i) An investor pays equal instalments of $100 at the beginning of each period for 3 years, into...
Words: 426 - Pages: 2
...Status | Date | Type | Document | 01/05/2013 | Active | 1 | | Documents Control | Academic Record | 2013 1st Semester :: Main Campus | Mode / Type / Cond | Crd. | Grd. | Qpt. | | | MATH | 181 | Business Algebra | Reg / Core / regular | 3.00 | C | | | | INSY | 110 | Computers and Business Information Systems | Reg / Core / regular | 3.00 | B | 7.00 | | | CONV | 101 | Convocation [1st Year 1st Semester] | Reg / Core / regular | 0.00 | S | 0.00 | | | ACCT | 111 | Financial Accounting 1A | Reg / Core / regular | 4.00 | C | 8.00 | | | ORIE | 100 | Orientation | Reg / Core / regular | 0.00 | S | 0.00 | | | RELT | 215 | Philosophy of Christian Education | Reg / Core / regular | 2.00 | | 0.00 | | | MGMT | 155 | Principles of Management | Reg / Core / regular | 3.00 | B+ | 7.00 | | | ECON | 215 | Principles of Microeconomics | Reg / Core / regular | 3.00 | C+ | 6.99 | | | EDUC | 101 | Work Education | Reg / Core / regular | 0.00 | | | | | | Core Cumulative, Cred: 15.00, GPA: 2.14 | Period Total: | 15.00 | GPA= | 2.14 | | | 2013 2nd Semester :: Main Campus | Mode / Type / Cond | Crd. | Grd. | Qpt. | | | MATH | 182 | Business Calculus | Reg / Core / regular | 3.00 | | | | | COMM | 102 | Communication Skills | Reg / Core...
Words: 610 - Pages: 3
...$8.00 - $1.75] + $1.75 = $1.94 D3 = 0.75 [0.25 x $8.00 - $1.94] + $1.94 = $1.985 D4 = 0.75 [0.25 x $8.00 - $1.98] + $1.98 = $2.00 D5 = 0.75 [0.25 x $8.00 - $2.00] + $2.00 = $2.00 B2. (Dividend policy) A firm has 20 million common shares outstanding. It currently pays out $1.50 per share per year in cash dividends on its common stock. Historically, its payout ratio has ranged from 30% to 35%. Over the next five years it expects the earnings and discretionary cash flow shown below in millions. a. Over the five-year period, what is the maximum overall payout ratio the firm could achieve without triggering a securities issue? Total discretionary cash flow = $50 + $70 + $60 + $20 + $15 = $215 Total earnings = $100 + $125 + $150 + $120 + $140 = $635 Maximum Payout Ratio = $215 / $635 = 33.86% b. Recommend a reasonable dividend policy for paying out discretionary cash flow in years 1 through 5. Current dividend = $1.50 x 20 million shares = $30 million The firm could increase the dividend from $30 million to $50 million. D1 = $35 / 20 = $1.75 D2 = $39 / 20 = $1.95 D3 = $43 / 20 = $2.15 D4 = $48 / 20 = $2.40 D5 = $50 /...
Words: 768 - Pages: 4
...Preparation Questions for Myers & Majluf Article on Financing and Investing Decisions Tradicional Finance a) If the NPV of the project is positive, the firm should undertake the investment. b) Base in the formula I = E + S we can demonstrate what is the best decision for the company. For that we will make a numerical example. State 1 State 2 Asset-in.place a 150 50 Investment Opportunity (NPV) b 20 10 P' I Debt (D) Lot of cash S E True Value (V) P'+E V V old new = = = 115 150 0 115 150 0 = = = = = 100 50 320 165 100 50 210 165 = 223,03 146,36 96,97 63,64 Little cash S E True value (V) P'+E V V old new = = = = 30 120 320 235 30 120 210 235 = 156,60 102,77 = 163,40 107,23 S↗ S↘ Payoff V in state 1 V in state 2 old old Issue & Invest (E=50) 223,03 146,36 Issue & Invest (E=120) 156,60 102,77 Do nothing (E=0) 150 50 With this example we can easily state that more cash bring more value to the old stockholders and most importantly, to the firm. c) Retained earnings – could avoid to issues stocks (assumption: the firm only uses risk-free borrowing to reduce the required investment and the investors are passive). “Firms should go to bond markets for external capital, but raise equity by retention if possible.” (Page 219 of the paper). Firms can build up financial slack by restricting dividends when investment requirements are modest. The cash saved is held as marketable securities or reserve borrowing power. Debt...
Words: 1913 - Pages: 8
...Cash Management Paper INTRODUCTION Cash management techniques provide a framework for companies to follow that will enable it to maintain cash that is needed to operate the business. The primary goal of cash management is to maintain low balances of cash on hand but at the same time striking a balance so that necessary cash is available to pay for planned transactions, unexpected transactions, and compensating balances to banks for services provided (Block & Hirt, 2005). As part of the cash management strategy, a company may also look to short term financing to maintain its cash reserve. This paper will compare and contrast the various cash management techniques and the various methods of short-term financing that are available to companies to manage cash flow. CASH MANAGEMENT TECHNIQUES One cash management technique involves the study the company’s daily, weekly, and yearly cash flow cycle and cash balances (Block & Hirt, 2005). “Cash flow relies on the payment pattern of customers, the speed at which suppliers and creditors process checks, and the efficiency of the banking system.” (Block & Hirt, 2005, p. 175). Once a sale is completed, the company either receives an immediate cash payment or an account receivable which will be collected at a future time to assist in purchasing or manufacturing additional inventory (Block & Hirt, 2005). The rise of ecommerce has also provided a cash flow benefit to companies in that all sales require a credit card (Block & Hirt...
Words: 1077 - Pages: 5
...retain a copy of the assessment item on its database for the purpose of future plagiarism checking).I certify that I have read and understood the Institute Rules in respect of Student Academic Misconduct. | | | | | | | Date | Student Signature | B. MARKER TO COMPLETE Comment : | Grade | | | | | | | | | | | | | | | Date | Marker’s Signature | | | IV’s Feedback | | | | | | | Date | IV’s Signature | Higher National Diploma in Business Management | Unit Title: Managing Financial Resources and Decisions | Assignment Title & Number:QCF-S1-A1-MFR | Learning Outcomes Covered:Outcome1: Understand the sources offinance available to a businessOutcome2:Understand the implications of finance as a resource within a businessOutcome3:Be able to make financial decisions based on financial informationOutcome4:Be able to evaluate the financial performance of a business | Assessment Criteria Covered: 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 2.4,...
Words: 2160 - Pages: 9
...FINANCIAL MANAGEMENT OF COURTS BUDGET Programme Director, Tererai Mafukidze Members of the South African Judges Commission, Members of the Venice Commission Various Professionals and members here present, Distinguished Guests, Registrars from various parts of the world, Ladies and Gentlemen Protocol observed. I am humbled to address this auspicious gathering of the South African Judges Commission and Venice Commissions Registrar’s workshop held in our most beautiful land, South Africa. Allow me, therefore, to extend a warm word of welcome to all newly appointed Registrars and also pay recognition to those of you who have been a pillar of strength at your various organizations ensuring enhanced administrative support and capacitating the Judiciary that you serve. You are indeed a critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves must...
Words: 3487 - Pages: 14
...FINANCIAL MANAGEMENT OF COURTS BUDGET Programme Director, Tererai Mafukidze Members of the South African Judges Commission, Members of the Venice Commission Various Professionals and members here present, Distinguished Guests, Registrars from various parts of the world, Ladies and Gentlemen Protocol observed. I am humbled to address this auspicious gathering of the South African Judges Commission and Venice Commissions Registrar’s workshop held in our most beautiful land, South Africa. Allow me, therefore, to extend a warm word of welcome to all newly appointed Registrars and also pay recognition to those of you who have been a pillar of strength at your various organizations ensuring enhanced administrative support and capacitating the Judiciary that you serve. You are indeed a critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves must...
Words: 3487 - Pages: 14
...1. Executive Summary This paper aims to study the case in depth from an objectiveview.Commercial banks use in the introduction of foreign strategic investors will really enhance the company's value, and provides a high yield of financial investment opportunities for foreign strategic investors.The proposed investment in Shenzhen Development Bank (SDB) by Newbridge in 2002 and evaluate the 1.6 times book value that Newbridge agrees to pay for its 18% stake in SDB is appropriate. 2. Introduction As China continues to open up financial policies, purchasingshares of China's commercial banks has gradually become an important mean of foreign banks to enter the Chinese financialmarket.In May 29, 2004 ,by way of non-tradable stock officially, the Newbridge Capital became the largest shareholder of SDB. SDB as China's first listed bank to introduce foreign strategic investors cases in the history of China's banking industry led to the stock market are a landmark development. What is more, this case provides an excellent opportunity to other commercial banks which want to introduce foreign strategic investors affect the value of the commercial banks.Newbridge acquisition of Shenzhen Development is China's commercial banks to introduce foreign strategic investors, the most interesting acquisitions boom event, while the smooth completion of the acquisition and operation of the acquisition of Newbridge really enhance the company's value has been one of SDB the focus of attention. ...
Words: 1203 - Pages: 5
...FINANCIAL MANAGEMENT OF COURTS BUDGET Programme Director, Tererai Mafukidze Members of the South African Judges Commission, Members of the Venice Commission Various Professionals and members here present, Distinguished Guests, Registrars from various parts of the world, Ladies and Gentlemen Protocol observed. I am humbled to address this auspicious gathering of the South African Judges Commission and Venice Commissions Registrar’s workshop held in our most beautiful land, South Africa. Allow me, therefore, to extend a warm word of welcome to all newly appointed Registrars and also pay recognition to those of you who have been a pillar of strength at your various organizations ensuring enhanced administrative support and capacitating the Judiciary that you serve. You are indeed a critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves...
Words: 3270 - Pages: 14
...Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Project Financing Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com. Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Copyright C 2007 by John D. Finnerty. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States...
Words: 114949 - Pages: 460
...Chapter 27 The Basic Tools of Finance TRUE/FALSE 1. If the interest rate is 8 percent, then the present value of $1,000 to be received in 4 years is $735.03. ANS: T DIF: 2 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Applicative 2. If a savings account pays 5 percent annual interest, then the rule of 70 tells us that the account value will double in approximately 14 years. ANS: T DIF: 2 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Compounding MSC: Applicative 3. The present value of $100 to be paid in two years is less than the present value of $100 to be paid in three years. ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Analytic 4. The future value of $1 saved today is $1/(1 + r). ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Analytical 5. The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum. ANS: T DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of economics, and definitions of economics TOP: Present value MSC: Interpretive 6. The sooner a payment is received and the higher the interest rate, the greater the present value of a future payment. ANS: F DIF: 1 REF: 27-1 NAT: Analytic LOC: The Study of...
Words: 27968 - Pages: 112
...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...
Words: 16200 - Pages: 65
...Brambles Limited ABN 89 118 896 021 Level 40 Gateway 1 Macquarie Place Sydney NSW 2000 Australia GPO Box 4173 Sydney NSW 2001 Tel +61 2 9256 5222 Fax +61 2 9256 5299 www.brambles.com 20 August 2015 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam BRAMBLES LIMITED FY15 FINANCIAL RESULTS Brambles Limited announces to the market its financial results for the year ended 30 June 2015. The following documents are attached: 1. 2. Appendix 4E – Preliminary Final Report; and Brambles’ 2015 Annual Report including its financial statements, for the ended 30 June 2015. Yours faithfully Brambles Limited Robert Gerrard Company Secretary {RNG 00086515} This page intentionally left blank Results for Announcement to the Market Brambles Limited ABN 89 118 896 021 Appendix 4E Preliminary final report for the year ended 30 June 2015 Year ended 30 June 2015 US$M 2014 US$M % change (actual FX rates) % change (constant FX rates) Statutory Results Continuing operations after Significant Items1: Sales revenue 5,464.6 5,404.5 1% 8% Operating profit 938.5 929.5 1% 8% Profit before tax 826.6 816.5 1% 9% Profit after tax 585.5 584.5 0% 7% (1.1) 683.2 584.4 1,267.7 -54% -51% 37.3 81.2 -54% -51% 5,464.6 5,404.5 ...
Words: 27269 - Pages: 110
...RISK MANAGEMENT IN ISLAMIC BANKING AND FINANCE: THE ARAB FINANCE HOUSE EXAMPLE Bilal A. Fleifel A Thesis Submitted to the University of North Carolina Wilmington in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration Cameron School of Business University of North Carolina Wilmington 2009 Approved By Advisory Committee Howard Rasheed Cetin Ciner William H. Sackley Chair Accepted By DN: cn=Robert D. Roer, o=UNCW, ou=Dean of the Graduate School & Research, email=roer@uncw. edu, c=US Date: 2010.01.21 15:02:51 -05'00' ________________________ Dean, Graduate School TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... ii ABSTRACT........................................................................................................................ vi ACKNOWLEDGMENTS .................................................................................................. vii DEDICATION .................................................................................................................. viii LIST OF TABLES .............................................................................................................. ix LIST OF FIGURES...............................................................................................................x GLOSSARY .............................
Words: 34301 - Pages: 138
