STRATEGIC FINANCIAL MANAGEMENT [PA2] PRACTICE EXAMINATION PA2 Before starting to write the examination, make sure that it is complete and that there are no printing defects. This examination consists of 19 pages. There are 4 questions. READ THE QUESTIONS CAREFULLY AND ANSWER WHAT IS ASKED. To assist you in answering the examination questions, CGA-Canada includes the following glossary of terms. Glossary of Assessment Terms Adapted from David Palmer, Study Guide: Developing Effective
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differences means that his cashflow forecast may not be an accurate overview of cash inflow in his area. As well as this, the predictions are made for a city-centre salon, which will have a higher level of sales than a town-centre one. + Tom had vast experience in that area of business + He was able to make changes to his business depending on the forecast to prevent any difficulties. + The forecast gave an indication of cash - Toms business aims are different to Josuas - Figures provided by Joshuas
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the flexibility (options) to respond to changing economic conditions, they can modify or halt the operation of the investment so as to maximize the value created by the investment. >> END Solution ST.3 Tools for Analyzing the Risk of Project Cash Flows 13–1. (Related to Checkpoint 13.1 on page 420) (Calculating expected revenues) The owner of the Crusik Distribution Company is evaluating the expected annual sales for a new line of facial care products and estimates that there is a 50% chance
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The following questions are designed to test your knowledge of the fundamental concepts of financial management structure [chapter 1], financial valuation [chapter 2], financial statements and tax planning [chapter 3], and short-term financial forecasting and financing [chapter 14]. Choose the best possible answer to the questions given. Each question is equally weighted. Papers are due 2/26/09 at the beginning of class. True/False Indicate whether the statement is true or false. ____ 1. There are
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The Lazy Mower: Is It Really Worth It Solution to Case 03 Cash Flow Analysis Questions: 1. Prepare a Pro Forma Statement showing the annual cash flows resulting from the Lazy Mower project. (See table on next page) | |0 |1 | |Base | $ 46,162,736.36 |60.806% | |Pessimistic | $ 36,143,876.79 |51.733% | |Optimistic | $ 60,917,016.49 |74.153% | 3. Realizing that the CIC will demand some kind of sensitivity analyses, how should Dave and Rick prepare their report? Which
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more detail. Remember, the cash flows are estimates and actual cash flows will be different than our estimates. We look at the changes in NPV and cash flows by asking “What if” questions. We will examine some of the methodologies for asking these “What if” questions. The goal is to develop some estimate of the forecasting risk and identify the components that are most critical to the success of a project. When we examine a project with the projected cash flows, we will call this our base
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Unlicensed assistive personnel often called care assistants and patient care technicians, usually have 40 hours or less of hospital-based training. Which cost cutting loan option was chosen? Explain why. To help solve the hospital’s current cash flow problem, loan option 1 was chosen. In loan option 1, the interest rate is 9.45% and there is no prepayment limitation compared to option number two which has 9.00% interest rate and has a prepayment limitation of 6 months. EHC will be receiving money
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Analysis of Financial Statements (MBA) Project Instructions Project writing is not a difficult task at all. However, it is an art by which the writer represents his point of view in a way that it looks professional, clear and comprehensive, and finally leaves a long lasting impression on the reader. Ethics of project writings: Project writing has some ethics which must have to be followed by the writer in order to make a professional project. Emphasis on these ethics will make you learn how
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response as you complete each question. | Question 1 (4 points) The ____ shows the results of a firm's operations over a period of time, usually one year. Question 1 options: | income statement | | balance sheet | | statement of cash flow | | statement of financial position | Save Question 2 (4 points) Operating expenses include Question 2 options: | marketing-related expenses. | | the cost for independent dealers to prepare for the distribution of the product.
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Competition Bikes makes bicycles for the professional and accomplished riders who compete. The success of Competition Bikes products is also known in Canada with Canadian customer orders comprising about 10% of the company output. Because of this success, Competition Bikes is exploring the possibility of an expansion into Toronto, Canada. Capital Structure Examining which capital acquisition methods will maximize shareholder return is an important step in exploring the possibility of expansion
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