Proxima Centauri, Inc. On January 1, 2012, Proxima Centauri Inc., a publicly-traded U.S. corporation, granted 1,000 “at-the-money” employee stock options to the founding employees of the high-tech company. To align the compensation of the employees with the financial performance of Proxima, the award was designed to vest only if cumulative revenue over the following three-year reporting period was greater than $10 million and the employees were still employed by the organization at the end of the
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Task 4 Year Cash Flow 15% Rate of Return Present Value 0 $(3,000,000.00) 1 $1,100,000.00 $956,521.74 2 $1,450,000.00 $1,260,869.57 3 $1,300,000.00 $1,130,434.78 4 $950,000.00 $826,086.96 Less Investment $(3,000,000.00) $3,450,866.74 1. IRR % IRR= 22.38% 2. NPV NPV= $3,450,866.74 3. Should the company accept this project and why? I believe the company should look into this. The IRR is greater than the Required Rate
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Hollaar Project-Coordinator: J.H.J.Lukkezen Course-Coordinator: dr. C. Remery Course: Applied Economics Research Course Date: 13th of November, 2011 Table of Contents Abstract 2 Introduction 3 Section I: Theory 5 1.1 Sovereign bonds and credit rating agencies 5 1.2 Measures for investors behavior 6 1.3 Expected behavior of investors 11 1.4 Related literature 15 1.5 Models 16 Section II: Data & Stylized facts 17 2.1 Data 17 2.2 Stylized facts 20 Section III:
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Brigham Concise 4th Edition Chapter 4: The Financial Environment: Markets, Institutions, and Interest Rates 1. The New York Stock Exchange (NYSE) is: a. a secondary market. b. a physical asset market. c. a primary market d. Statements a and b are correct. e. Statements b and c are correct. a. Correct. 2. An example of a primary market transaction is: a. buying 100 shares of Wal-Mart stock from your uncle. b. buying 100 shares of IBM stock through the New York Stock Exchange via
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and sold. One great example would be Companies, governments or public sector institutions that funding through the direct purchase of a new stock or bond. Secondary market: This is a financial market where previously issued securities such as stocks and bonds are bought and sold. A great example of this would be after the bank is issued stocks and bonds, they are then sold to consumers and customers at the bank. Risk: Risk is a possibility for investments. Shareholders, investors, business owners
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50 MC questions Chapter 7, 8, and 9 Test review * Risk * It’s the possibility of a loss, the uncertainty of a return that will never be achieved * What are the two components of risk? * Unsystematic risk (diversifiable risk) * Business risk * Financial risk * Can be eliminated through diversification * Systematic risk (non diversifiable risk) * Market risk * Interest rate risk * Reinvestment risk
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Exercise 14-2 1. Discount = Par value - Issue price = $90,000 - $85,431 = $4,569 2. Total bond interest expense over the life of the bonds |Amount repaid | | | Six payments of $3,600 |$ 21,600 | | Par value at maturity | 90,000 | | Total repaid
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Money Market Products | | | | | Money market products (T-bills, Commercial Paper and Banker’s Acceptances) are short-term fixed-income products that are sold at a discount and then mature at face value. The difference between your purchase price and par value is your return.Learn more about: * T-Bills * Banker’s Acceptances (BAs) * Commercial Paper * Crown Corporate PaperT-Bills * What are they? Treasury Bills (T-bills) are short-term debt instruments issued by both the US and
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Lecture 2: Statement of Cash Flows Self-study exercises: model answers Exercise 1: Free Ltd Free Ltd | Statement of Cash Flows for the year ended 31st March 2013 | | | | | | | | | | | | | | £m | | £m | | | | | | | | | Cash from operating activities | | | | | Profit before tax | | | | | 232 | Adjustments for | | | | | | | Depreciation | | | 190 - 145 | | 45 | | Interest expense | | | | | 24 | Operating profit before working capital
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MGT-435B Bond Markets – Final Project Report: The Economic Function of Credit Rating Agencies - What does the Watchlist tell us? Christina E. Bannier, Christian W. Hirsch (2010) Executive Summary In the “Economic Function of Credit Rating Agencies” by Christina Bannier and Christian Hirsch (2010), the authors researched whether the economic role of credit rating agencies have been enhanced after the introduction of Watchlists. Therefore, the focus of this paper is to analyze the shift in function
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