...FIN515 Homework Week # 3 Brian Jack D01609334 Managerial Finance briancjack@hotmail.com 03-23-2014 Professor: Paul Tovbin Chapter 5 29. Suppose the term structure of risk-free interest rates is as shown below: Top of Form |Term |1 year | |Treasury |3.1 | |AAA corporate |3.2 | |BBB corporate |4.2 | |B corporate |4.9 | • a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating? • b. What is the credit spread on AAA-rated corporate bonds? • c. What is the credit spread on B-rated corporate bonds? • d. How does the credit spread change with the bond rating? Why? 30. HMK Enterprises would like to raise $10 million to invest in capital expenditures. The company plans to issue five-year bonds with a face value of $1000 and a coupon rate of 6.5% (annual payments). The following table summarizes the yield to maturity for five-year (annual-pay) coupon corporate...
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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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...Goals of Financial Mgmt Page 1 Goals of Financial Management Name FIN/200 Introduction to Finance Date Instructor School Goals of Financial Mgmt Page 2 As stated in the Foundations of Financial Management (1) the primary goal of financial managers is to maximize the wealth of the shareholders. A shareholder invests money in a business with the expectation of receiving some type of profit in the future. Earnings are valued by the market price of the company’s common stock and taken into consideration is how the earnings are valued by the investor. The stock price is a direct reflection of the firm’s investment, financing, and dividend decisions. These duties are performed on a day to day basis and include credit management, inventory control, and the receipt and allocation of funds. Other functions can include the sale of stocks and the structuring of budgets and dividend plans. (2) In order to have share prices increase investing money in generating assets such as new production plants, product development, or marketing activities is necessary. Value is only created with the investment returns more of a financial yield than the original output of cash. Maximization of the shareholder’s wealth is achieved by reaching for the highest possible value for the firm. The higher the net income the more the stock prices increase. Management is now aware that maintaining their position requires sensitivity...
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...Keep running funds, Extend them into other countries, Focus as much on behavioral as they are Jp morgan pioneer in behavioral investing Began to focus in us market On investment side, Chris complin, cio for behavioral finance, had all give new products in the top 20% of their lipper categories On business of asset management unit, Richard chambers, head of us and eoropean marketing, had given investor psychology a central in the branding of the new funds By Q3 2006 total assets under management was 20 billion from 100 million in 1Q 2003 Jp mogran broken down to: Private bank, focusing on wealth management for the most affluent clients End of 2006, 1.15 trillion of assets under supervision, and 847 billion under management Private bank built portfolios, asset management delivered individual building blocks Behavioral Finance JP morgans benahviroal finance began in 1992 in london 2/3 of 76 billion in behavioral finance products was in non-us stocks. First fund, premier equity growth, formed in 1992 by Andrew spencer Beat benchmark 9 of 10 years Complin took over for spener Cheap stocks outperform expensve tstocks Best recent performers outperformed the worst recent performers JP MORGRAN EMPHASIZED OVERCONFIDENCE AND LOSS AVERSION Believed both were pervasive and persistent in explaining the existence of value and momentum anomalies Overconfidence - “80% of drivers bliece they are better than aveaege) Jpm approach forces our funds to systematically...
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...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...
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...makes sense? HAIDER SADIK Mgmt. Policy, Rl June 30, 1995 The diversification into financial services may best be looked at as a reflex of the Benetton entrepreneurial sensibility to seek out profitable opportunities while addressing the long-term impact of global changes on its existing business. With the developed nations reaching saturation levels in industrial growth, and the developing markets experiencing a capital investment boom, the Benetton subcontractor network, primarily in Italy and Europe, will eventually get incapacitated based on cost competition. Thus, a critical element of the Benetton textile retail business will eventually go under. To hedge against this risk, Benetton would have to establish relationships with suppliers in the Asian and other emerging markets. The big difference now, however, is that the balance of power would shift more in favor of these subcontractors, who will be more competitive, making it harder to negotiate exclusive contracts and exert control on as before. Thus, a key ingredient for maintaining rapport with piece-makers would be owning shares in several of these firms located globally while helping the subcontractors with equipment and machine supply. And once the Benettons have a vested interest in these firms, they would like to monitor and exert financial control over them. The above scenario is sufficient for re-focusing the business strategy to diversify into investment banking, corporate finance, brokerage houses, and leasing...
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...1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of these three elements is Eastboro management willing to vary, and which elements remain fixed as a matter of policy? Management is willing to vary their investment (investing less) as well as issue more stock. This is not against their policy. But the management would not be willing to borrow more as their borrowing policy is limited to 40% debt to equity ratio. 2. What happens to Eastboro's financing need and unused debt capacity if , a. No dividends are paid? If no dividend are paid, the company does not need financing required for the dividends. Hence the company’s financing needs decreases. If the company pays 40% dividend, they need to borrow $30 million in 2001 and if no dividend is paid, they only need to borrow $23 million. Hence the unused debt capacity also increases if no dividend is paid. b. 20 percent payout is pursued? If 20% dividend payout policy is pursued, the amount needed for dividend would be $3.6 million as opposed to $7 million (with a 40% payout). The company requires less financing and hence the financing needs decreases as opposed to a 40% dividend payout. Also the unused debt capacity would decrease as the company needs to borrow $26.6 million as opposed to $30 million (with a 40% payout). c. 40 percent payout is pursued? If 40% dividend policy is pursued, the financing needs of...
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...MGMT 5007 Case Study : Jetstream Aerospace ST. LAWRENCE COLLEGE ALPHA CAMPUS June 26th , 2015 Authored by: Brijraj Singh4235113 Muthupandian Thevar- 4235280 Nandhu Venugopal4237344 Page |1 Table of Contents Executive Summary....................................................................................................................................... 2 Issues Identification ...................................................................................................................................... 3 Environmental and Root cause analysis ....................................................................................................... 4 Alternatives and options ............................................................................................................................... 6 Recommendation.......................................................................................................................................... 8 Implementation ............................................................................................................................................ 9 Monitor and Control ................................................................................................................................... 10 Page |2 Executive Summary Following is the report focusing on the current issues faced by Jetstream Aerospace, which is drastically affecting the performance of the company. Jetstream’s global workforce helped...
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...COURSE TITLE : FINANCIAL MANAGEMENT II COURSE CODE : MGMT 3048 LEVEL : 3 SEMESTER : 1 NO. OF CREDITS : 3 PRE-REQUISITE(S) : MGMT 2023, MGMT 2032 COURSE DESCRIPTION/RATIONALE The course is a continuation of Financial Management I (MGMT 2023) and therefore starts off from where Financial Management I ended. It is intended to complete the work initiated in the predecessor course and is for the consumption of Management / Finance students at the undergraduate level. This course is concerned with the major skills needed for a senior financial officer with respect to short-term financial operations (working capital management and financing) and long-term financial operations (capital structure, financing options) and introduces some international finance issues. Students will learn how to apply their learning in real-world examples. LEARNING OUTCOMES Since the course picks up the thread from its pre-requisite course MGMT 2023, the students already know that the finance function in an organization comprises of taking decisions regarding long term investments, financing (long term and short term) and distribution of profits. We touched upon some of these in the course before. Here, we specifically focus on the mechanism of raising capital, Capital Structure and Dividend policies and Short term Financial Decisions. We move towards consummation by taking up some issues in International Finance, Risk Management, Mergers and Leasing as well. The learning...
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...Running Head: FINANCIAL MANAGEMENT Financial Management MGMT 312 Financial Management Businesses must have a plan to succeed; if the original plan is not a success, there must be a few alternative plans available. First, the roles of a financial manager will be discussed. Second, a scenario was given to find a future value during a five year time frame and the results will be discussed. Finally, risk contracting will be evaluated including the various financial incentive structures and how they could be used to improve the efficiency of care in risk contracts. First, the roles of a financial manager will be discussed. As a manger, one is required for “effective risk management” (Farley, 2000). “More desirable options include growth, structuring incentives to reduce or eliminate unnecessary variation in resource use, and capturing information about why variations in resource use occur,” (Farley, 2000). Farley explains that larger organizations have more options than smaller businesses because it allows more room for risks (2000). A financial manager should be capable of strategic planning. Benoff mentions in 2000 that the strategic planning should consider, “a variety of market approaches before settling on a specific future market strategy.” Benoff (2000) strongly believes, “to account for the needs and perspectives of all stakeholders, therefore the strategic –planning...
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...SOME OF THE IFMIS APPLICATION SOFTWARE SOLUTIONS Introduction The original version of this document has been developed by a consultant firm (CJSC Avicomp Services, Russia) as an annex to the System Design report prepared during the design of Public Financial Management System (PFMS) in Moldova for the Ministry of Finance (MoF) in December 2005. The purpose of this study was to better understand the capabilities of some of the application software (ASW) modules (commercial-off-the-shelf software packages) in order to assess the level of customization needed to meet the MoF technical requirements while implementing an integrated Financial Management Information System (IFMIS) in Moldova. This study shows that all ASW solutions can provide the desired core Treasury (budget execution) functions with minimal customization. Additional PFM functions can be supported through custom developed software and be integrated with these software packages to provide the full PFMS functionality. In 2006, the MoF kindly agreed to share this annex with other public sector organizations and related specialists for their internal use while designing or studying the PFM systems. This document is intended to present the functional modules of several available ASW solutions which were implemented in similar projects in Europe and Central Asia (ECA) region of the World Bank. A summary of PFMS functions vs modules of selected ASW is presented below: • • • FreeBalance eFinancials Oracle E-Business Suite...
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...higher 工科: IELTS of 6.5 (no component under 6.0) or equivalent [pic][pic][pic] TOEFL: Internet-based score of 92 (minimum 19 listening, 21 speaking, 19 writing and 20 reading) PTE (Pearson): 62 (minimum 55 in all components) Test dates should be within two years of the course start date. 2. ST ANDREWS 圣安Scotland MLitt International Business MLitt Marketing MSc Economics MLitt English Studies MSc Finance MLitt Finance and Management MLitt Human Resource Management MLitt International Business and Strategy MLitt Management MSc Management and Information Technology MSc Computing and Information Technology MSc Information Technology MLitt TESOL with Distance Learning 2:1 (UK), 2:2 or B+ (Europe), 3.6 GPA (USA), 85% (China), 70% (India) IELTS 7.0 with minimum 6.0 in writing or TOEFL 600PBT/100IBT £17,500 NO GMAT Requirement, 2+2 students’ IETLS may can be waived. 3. Bath 巴斯 England The School of Management: No 1 for Accounting and Finance in UK No. 1 for Student Satisfaction in Business Study in UK No 1 for Graduate Jobs in Business No 2 and No 11 in UK and World Ranking in MBA study Management: 44 (0) 1225 386742 MSc in Management MSc in Human Resource Management and Consulting MSc in Sustainability and Management MSc in International Management MSc in Advanced...
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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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...Organizational Theory, Design, and Change Jones 6th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://solutionsmanualtestbanks.blogspot.com/2011/10/organizational-theory-d esign-and-change_18.html ----------------------------------------------------------------------Organizational Organizational Organizational Organizational Theory, Theory, Theory, Theory, Design, Design, Design, Design, and and and and Change Change Change Change Jones Jones Jones Jones 6th 6th 6th 6th Edition Edition Edition Edition Test Test Test Test Bank Bank Bank Bank -------------------------------------------------------------------------***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Test Bank in e-version of the following book*** Name: Organizational Theory, Design, and Change Author: Jones Edition: 6th ISBN-10: 0136087310 Type: Test Bank - The test bank is what most professors use an a reference when making exams for their students, which means there’s a very high chance that you will see a very similar, if not exact the exact, question in the test! - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs. - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6 hours. This is the quality of service we are providing and we hope to be your...
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...University of phoenix | Interpreting Financial Results | MGMT-571 FINANCE | | Mario Medina | 3/11/2014 | | Financial ratios play a key role in determining how a company is doing financially either for the good or the bad. Financial Ratios can be used internally or externally to determine how financially stable a company is. For this assignment we will use three common ratios to determine how financially stable and how Under Armour is over the last three years. Current Ratio “To calculate the current ratio, we divide current assets by current liabilities. More liquidity is better because it means that the firm has a greater ability, at least in the short term, to make payments” (Parrino, Kidwell, & Bates, 2012). Below is a breakout of UA’s three year current ratio. Current Ratio=Current Assets/Current Liabilities * 2011:689,663/183,607=3.76 * 2012:903,598/252,228=3.58 * 2013:1,128,811/426,630=2.65 For any company no matter the industry no one wants a current ratio less than one because this suggests that the company has more liabilities than assets meaning that in the short run they will be more likely not able to pay their debts. UA from 2011 to 2012 had a pretty steady ratio on average around 3.7 meaning that they have 3.7 times more assets that liabilities means that in the short run they will be able to meet any debt they should have. From 2012 to 2013 there current ratio did decrease to 2.65 because they did add more current liabilities...
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