...the period s shown on a cash basis. The Net Loss percentage calculated for each period below is obtained by dividing Net Losses by the Average Principal Receivables Outstanding multiplied by a fraction, th e numerator of which is the total number of days in the applicable calendar year and the denominator of which is the total number of days in the trust monthly reporting periods for the applica ble period (365/273 for the nine months ended September 27, 2011, 365/365 for the year ended December 28, 2010, 365/367 for the year ended December 28, 2009 and 366/366 for the year ended December 26, 2008). If accrued finance charge receivables that have been written off were included in losses, Net Losses would be higher as an ab solute number and as a percentage of the average of principal and finance charge receivables outstanding during the periods indicated. Average Principal Receivables Outstanding is the average of principal receivables outstanding during the periods indicated. There can be no assurance that the loss experience for the receivables in the future will be similar to the historical experience set forth below. Loss Experience for the Accounts (Dollars in Thousands) Nine Months Ended Year Ended Year Ended Year Ended September 27, 2011 December 28, 2010 December 28, 2009 December 26, 2008 Average Principal Receivables Outstanding...
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...available at a present time is worth a lot more then the amount that its is in the future due to the “potential earning capacity”. The core principle of finance is provided money is able to earn interest and any money received sooner is worth more. Investopedia - Time Value of Money - TVM. (2014). Retrieved from http://www.investopedia.com/terms/t/timevalueofmoney.asp Efficient market Is a market that prices will quicky respond when there is an announcement of any kind of new information. Textbook. Primary versus secondary market Risk-return tradeoff Agency (principal and agent problems) Market information and security prices and information asymmetry Agile and lean principles Return on investment Cash flow and a source of value Project management Outsourcing and offshoring Inventory turnover Just-in-time inventory (JIT) Vender managed inventory (VMI) Forecasting and demand management University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. Term Definition Resource you used Time value of money Is the idea that money available at a present time is worth a lot more then the amount that its is in the future due to the “potential earning capacity”. The core principle of finance is provided money is able to earn interest and any money received sooner is worth more. Investopedia - Time Value of Money - TVM. (2014). Retrieved from...
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...other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |“A dollar received today is worth more than a|Titman, S. Keown, A. J. & . Martin ,J. D. (n.d.). | | |dollar received in the future. Conversely, |Financial Management. Principles and Applications: | | |a dollar received in the future is worth less|Chapter 1: Getting Started: Principles of Finance: 1.4. | | |than a dollar received today. Perhaps the |The Five Basic Principles of Finance. 12th,. ed. | | |most fundamental principle of finance is that|Copyrighted by Pearson Education. (2014). Retrieved from| | |money has a time value. A dollar received |https://newclassroom3.phoenix.edu/Classroom/#/contextid/| | |today is more valuable than a dollar received|OSIRIS:48546409/context/co/view/activityDetails/activity| | |one year from now. That is, we can invest the|/3195cb75-8a75-4bd9-a1c3-0092ba334301/expanded/False | | |dollar we have today to earn interest so that| ...
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... |Resource you used | |Time value of money |The idea that money available at the present time is worth more |Time value of money TVM. (2014). Retrieved | | |than the same amount in the future due to its potential earning |from | | |capacity. This core principle of finance holds that, provided |http://www.investopedia.com/terms/t/timevalueo| | |money can earn interest, any amount of money is worth more the |fmoney.asp | | |sooner it is received. | | |Efficient market |An efficient market is a market in which all the available |Titman, S., Keown, A., & Martin, J. (2014). | | |information is fully incorporated |getting started principals of finance. | | |into securities prices, and the returns investors will earn on |Finanical Managment, principles and | | |their investments cannot be predicted. |appliations (12 ed., p. 210). New Jersey: | | | |Pentice Hall. ...
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...principle amount P, annual interest rate r, and continuous compounding, the future value A after t years is I=Pert Interest Earned by Compounding Interest Continuously: A=Pert-P SECTION 13.2 – Consumer Credit Installment Loans * based on add-on interest. * Interest is calculated using the simple interest formula: I=Prt Revolving Loans – payments and/or purchases change the balance throughout the billing period * Finance charges – charges beyond the price of items purchased. May include interest, an annual fee, credit insurance, and other charges. * Most revolving credit plans calculate finance charges by the average daily balance method. The interest is determined based on the average daily balance of the account, a weighted average (review Section 12.2 if necessary) of the balance on each day of the month. SECTION 13.3 – Truth in Lending Annual Percentage Rate (APR) – true annual interest rate – USE TABLE h= finance charge per $100 of amount financed h=finance chargeamount financed∙$100...
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...Unit 1 Assignment 1 1. Finance: The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance. All three of which would contain many sub-categories. Financial Management: The planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. Finance can be broken into three different sub-categories: public finance, corporate finance and personal finance 2. There are three basic forms of business ownership, namely the sole proprietorship, the partnership and the corporation. ADVANTAGES OF SOLE PROPRIETORSHIPS: Ease of starting and ending the business, Being your own boss, Pride of ownership. Leaving a legacy Retention of company profits. No special taxes. DISADVANTAGES OF SOLE PROPRIETORSHIPS. UNLIMITED LIABILITY Limited financial resources. Management difficulties. Overwhelming time commitment. Few fringe benefits. Limited growth. Limited life span. ADVANTAGES OF PARTNERSHIPS. ...
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...Home | Contacts | Feedback About DEI * Background * Staff Organisation * Permament Secrerary's Office * Legal Department * Ethics Education * Finance and Administration IAF Resource Center Legal Department The Legal Department is the policy arm of the Directorate for Ethics and Integrity. Its main objective is to strengthen the Legal and Policy framework to fight corruption and rebuild ethics and integrity in Uganda. With regard to the coordination role, the Legal department is responsible for tracking the enforcement of anti- corruption policy and laws. This exercise is expected to ensure compliance and to enable the identification of challenges that law enforcement agencies face during enforcement and, also a mechanism to identify lacuna in the existing law and, new and emerging issues in the fight against corruption that would require new legislation. Functions of the Department * To Provide legal counsel to the directorate on matters related to the fight against corruption and ensuring ethical governance * To review existing anti- corruption legislation and policy, with a view to proposing ammendments * To identify new and emerging issues in the fight against corruption and develop new legislation or measures to address the same * To ensure compliance with anti- corruption laws and policy by monitoring their implementation * Ensuring that Uganda's legal and policy frame work is in harmony...
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...8th International Conference on Islamic Economics and Finance Measurement of Financial Development: A Fresh Approach Noureen Adnan 1 Financial development can be defined as the policies, factors, and the institutions that lead to the efficient intermediation and effective financial markets. A strong financial system offers risk diversification and effective capital allocation. The greater the financial development, the higher would be the mobilization of savings and its allocation to high return projects. Financial development can be measured by a number of factors including the depth, size, access, and soundness of financial system. It can be measured by examining the performance and activities of the financial markets, banks, bond markets and financial institutions. It is observed that higher the degree of financial development in a country, the wider will be the availability of financial services. A developed financial system offers higher returns with less risk. In this paper it is attempted to collect main components of financial development including Banks, Stock markets, insurance companies and bond markets for 41 economies during the period of 1988 to 2009. The method of principal component is utilized to extract a single financial development index out of them. Principal component analysis is a modern tool of data analysis. The main aim to apply principal component to achieve a meaningful index out of complex and multidimensional elements of financial development...
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...contract’ involved may be, for example, an investment in shares, land or bonds. An interest rate is a rate of return produced by debt of one form or another. Thus, an interest rate is one type of rate of return. Simple interest is a method of calculating interest in which the interest is computed on the basis of the original sum borrowed. Compound interest is a method of calculating interest in which interest is computed on the basis of the original sum borrowed plus interest owing but unpaid at the date of computation. The statement is true. The three different terms—‘present value’, ‘price’ and ‘principal’—all refer to the value of a financial contract at a given date (typically, today). ‘Present value’ tends to be used when the valuation is the result of a discounting procedure; ‘price’ tends to be used when the valuation is the result of a market transaction for a security and ‘principal’ tends to be used when the valuation refers to an amount lent by way of a standard loan. However, these circumstances are not independent; for example, a price may be offered and agreed to because a discounting procedure indicates to market participants that the price is the correct valuation. The term ‘nominal interest rate’ can mean an interest rate where interest is charged more frequently than the quoted period. For example, ‘6 per cent per annum payable quarterly’ is a nominal interest rate because interest is charged quarterly—that is, four times each year—but the quoted period is a year...
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...intermediaries account for approximately ________ of the total. A) 6% B) 40% C) 56% D) 60% Answer: C Ques Status: Previous Edition 3) Of the sources of external funds for nonfinancial businesses in the United States, corporate bonds and commercial paper account for approximately ________ of the total. A) 5% B) 10% C) 32% D) 50% Answer: C Ques Status: Previous Edition 4) Of the following sources of external finance for American nonfinancial businesses, the least important is A) loans from banks. B) stocks. C) bonds and commercial paper. D) loans from other financial intermediaries. Answer: B Ques Status: Previous Edition 5) Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total. A) 2% B) 11% C) 20% D) 40% Answer: B Ques Status: Previous Edition 6) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true? A) Stocks are a far more important source of finance than are bonds. B) Stocks and bonds, combined, supply less than one-half of the external funds. C) Financial intermediaries are the least important source of external funds for businesses. D) Since 1970, more than half of the new issues of stock have been sold...
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...investors than for firms trying to raise funds from a small number of investors? Answer: - Because the stockholders of a corporation can never lose more than the amount they invested in the firm, firms can raise even more funds from a large number of investors. 4. Suppose that shortly after graduating from college, you decide to start your own business. Will you be likely to organize the business as a sole proprietorship, a partnership, or a corporation? Explain your reasoning. Answer:- You would be better off if you had bought the stock, because it will have increased in value, while the interest on the bonds will have remained the same. 2.4 The principal-agent problem arises almost everywhere in the business world, and it also crops up even closer to home. Discuss the principal-agent problem...
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...school principals, superintendents, and other administrative personnel by providing a solid understanding of general finance and appropriate structure of federal, state, and local government. As the foundation, leaders have the correct knowledge to formulate and manage a school or district budget (Owings & Kaplan, 2013). After an introductory chapter on common misconceptions about school finance, the succeeding chapters delve into areas such as the legal framework for financing public education, school finance as an investment of human capital, taxation issues, equity, and structures of school finance systems. The authors illustrate the big picture of school finance,...
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...The Development of Modern Finance "A Short History of Value" David Roubaud & Jean-Charles Bagneris 10/2011 The Main Steps of the Theory Building • Portfolio Selection (Markowitz, 1952) • CAPM (Sharpe, 1963) • Financing and Dividend Decisions Neutrality (Modigliani et Miller, 1958, 1961,1963) • Efficient Markets (Fama, 1965, 1970) • Options Pricing Theory (Black & Scholes, 1973, Myers, 1977) • Agency Theory (Jensen, Meckling, 1976) • Efficient Markets II (Fama, 1991) • Behavioural Finance (Kahneman & Tversky, 1979, Shiller, 1981, 2000) Portfolio Selection • Investors are rationals and risk averse • Diversification lowers specific risk • Any portfolio is a combination of the market portfolio and the riskless asset The CAPM Capital Asset Pricing Model • Systematic risk of an asset is measured by its beta coefficient • The model calibrates the risk-return relationship • Simple, elegant and linear model => big success • Low explaining power (strong assumptions) • Alternative models are difficult to use 1 The Development of Modern Finance 2 Financial Markets Efficiency "At any given point in time, assets prices on financial markets account for all available information." • Strong assumptions on: – markets organization – investors behaviour • One consequence of EMH is Random Walk Hypothesis • Assumptions are not always true: 3 forms of efficiency (strong, semi-strong, weak) The irrelevance of financing and dividends decisions In a world without taxes and with perfect financial markets...
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...Question 1 Sources of finance of high-tech firm There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business. Large organizations are able to use a wider variety of finance sources than are smaller ones. Sources of finance can be classified into internal sources (raised from within the organisation) and external (raised from an outside source). There are five internal sources of finance, owner’s investment, retained profits, sale of fixed assets, sale of stock and debt collection. There are also five external sources of finance, bank loan or overdraft, additional partners, share issue, leasing, hire purchase mortgage, trade credit and government grants. For a high-tech company, firstly, long-term sources of finance should be used. For example, owner’s investment should become the first fund of the company. Owner’s investment is money which comes from the owner’s own savings. It is the form of start up capital - used when the business is setting up, it also can be used for business expansion. Owner’s investment is a long-term source of finance and there is no interest needs to be paid. But owner’s investment is a limit to the amount because of the owner has a limited amount that can be invest. The founder should look for more money from other aspects in order to start up a new company successfully. Bank loan is a good choice for the founder. Bank loan is money borrowed at an agreed rate of interest over a set...
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...One of the most important form of long term finance nowadays is Lease financing * Advantages of Lease finance over purchase of asset. * Huge capital investment on asset can be eliminated buy lease purchasing of assets. * Risk of depreciation and obsolescence doesn’t affect to the lessee. * Leasing is quickest and easiest method of financing of capital * The periodic lease rents paid by the lessee are tax deductible expenditure. * Leasing increase the borrowing power of the company as its debt equity ratio will be unaffected by lease purchase. * Bad investments can be avoided by lease purchasing. * Lessee can lease purchase and pay for asset only for the time he needs it. * Lease financing is not affected by inflation. Even if the costs go up over some years, you still pay the same lease rent as agreement. * In case of car lease finance or auto lease finance, one can enjoy using latest or high cost cars without buying it for a desired period of time. Disadvantages of lease financing: * Lease financing is a favored means of financing long term capital. However it is having following disadvantages. * Lessee has an obligation to continue making lease rent payments even if he is not economically using the asset because of decline in his business. * Even though lessee is not the owner, he is still responsible for repair and maintaining the asset as specified by the contract. You need...
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