MBA Financial Management and Markets Exam 1 Spring 2009 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
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Financial Statement Differentiation Paper Jason Rodriguez ACC/561 May 27, 2012 Michael DeMarco CPA Four different types of financial statements are balance sheet, income statement, cash flow, and statements of owners’ equity. These are very important to investor’s creditors and management. It is also important to be accurate with the numbers in these financial statements so you do not get behind and so the company doesn’t get audited. Weygandt, Kimmel, and Keiso state, “Assets, liabilities
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some short-term decisions concerning its working capital management. In order to learn from this experience they will develop a working capital policy which will increase the predictability and efficiency of their cash. Working capital is defined as “the assets of a business that can be applied to the operations” or “the amount of current assets which exceed the current liabilities” (Answers, 2007, para. 1). Working capital management involves the “deployment of current assets and current liabilities
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product during its lifetime. (5 marks) (Total for Question One = 25 marks) Rationale This question examines several learning outcomes from Section B of the Performance Management syllabus. Part (a) examines learning outcome B1(b) 'evaluate the impacts of just-in-time production, the theory of constraints and total quality management on efficiency, inventory and cost'. Part (b) (i), (ii) and (iii) examines learning outcome B1(e) 'apply learning curves to estimate time and cost for new products and
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situated at London, a limited company which is facing increasing growth. They began their business as a family business so their level of financial accountability is low. But now the management needs a financial accountant in order to ensure the accountability and proper management of the firm. However, before that the management needs to know specifically the roles and responsibility of proper financial information. They also need to know about budgeted plans and methods for appraisal of a business opportunity
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Solution 1. Investment = $2,000,000 + $1,300,000 = $3,300,000 Annual cash inflow = 300 skiers x 40 days x $55/skier-day = $660,000 Annual cash outflow = (200 days x $500/day) = $100,000 PV of cash flows @ 14% = ($660,000 - $100,000) x 6.6231 = $3,708,953 NPV = $3,708,953 - $3,300,000 = $408,953 The new lift will create value of $408,953, so it is a profitable investment. 2. After-tax cash flows = $560,000 x .6 = $336,000 PV of
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issued recalls or warnings on almost 50,000 Guidant cardiac devices. Further, it would take as long as two years to fix its safety problems. On Jan. 17, Boston offered Guidant an offer of $80 per share, totaling of $27 billion, $14 billion in cash and $13 billion in stock. By end of year, 2006, Boston Scientific executives found themselves spending several days a month at Guidant's St. Paul headquarters. They oversee continuing product issues. The company’s tope executives claim that operations
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Project Overview In this project, I will assume AMD as a private company and determine a price I would like to pay for acquiring AMD on control basis. My report starts with an introductory analysis of the company and industry, focus on three methods I used to evaluate AMD and all related assumptions to support these methods. After all, I’ll conclude a price I would like to pay to acquire and control AMD on Mar-31-2013. Please read it of more. This is Gong Chen’s final project of Valuation Model
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Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. Financial ratios are tools used to analyze financial conditions and performance
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control of the company, creditors have been told. According to financial statements prepared by the administrators Ferrier Hodgson, the company went from the positive cash flow of $207 million from its operating activities in its 2007 full year accounts to a deficit of almost $20 million in the first half of 2008. The cash flow had grown significantly from 2004 when ABC emerged as a significant player in the childcare industry – it ran 327 centres by June that year. Run by Eddy Groves, the company
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