Homework for Unit 3 Homework: 5-2, 6-6, and 6-10 5-2 Pg. 210 Wilson Wonders’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity? INT = (Coupon rate)(Par value) = (.10)(1000) = 100 VB = INT [1/rd – 1/rd(1 + rd)N] + M/(1 + rd)N = 100[1/.10 – 1/.10(1 + .10)12] + 1000/(1 + .10)12 = 100[1/.10 – 1/.313843]
Words: 381 - Pages: 2
CHAPTER 2: TIME VALUE OF MONEY Practice Problems PROBLEM 1 What amount must be deposited today in an account paying 6% per year, compounded monthly in order to have $2000 in the account after 5 years? PROBLEM 2 Jim makes a deposit of $12,000 in a bank account. The deposit is to earn interest annually at the rate of 9 percent for seven years. a) How much will Jim have on deposit at the end of seven years? b) Assuming the deposit earned a 9 percent rate of interest compounded quarterly, how much
Words: 393 - Pages: 2
extended credit. Some other at first glance analysis are the increases in long-term debt. Even though there is an increase of revenue, long-term debt can be a potential problem. Increased long-term debt can mean the organization may not have available finances to continue running a successful quality patient
Words: 714 - Pages: 3
Briefly explain about the unique FRS in Malaysian standard The unique FRS in Malaysian standard is to issue statements of principles for financial reporting. Means, it is a description of the fundamental approach that the Malaysian Accounting Standards Board believes should, in principle, underpin the financial statements of profit-oriented entities. The Statement is intended to be a comprehensive and reasonably detailed description of that approach, and the approach itself is intended to be internally
Words: 359 - Pages: 2
DISSERTATION PROPOSAL The Impact of Foreign Share Ownership on Financial Performance in Australia Word Count: 2,696 Table of Contents 1. Introduction ........................................................................................................................ 3 2. Literature Review ............................................................................................................... 5 2.1 2.2 3. 4. Corporate Governance in Australia ..................................
Words: 3941 - Pages: 16
Title: Complexities of the U.S Financial System Students Name: Shellie Richardson Professor’s Name: Karin Torres, MBA Course Title: Principles Of Finance Date: July 28, 2013 The United States financial (wealth) system is largely considered to be the most recognized system in the world. Financial markets are designed to skillfully direct the movement of money and savings and investments in the economy. By doing this the United States financial system stimulates the growth and the production
Words: 1036 - Pages: 5
Personal FinanceIt is important to plan the finance for any regular expenditure suchas the basic needs of any person like food, clothes, accommodation,bills etc.To be able to for fill all your personal needs you must have some kindof personal income, which will cover these expenses.The sources of personal income might be:Salary or wages =============== A regular earned income from employment, for these earnings the employee and the employer both have to pay a deduction to the government such as income
Words: 3067 - Pages: 13
Book Value VS Market value Weights You should always use the market value weights to calculate WACC. In practice, firms do use the book value weights. Generally, there will be difference between the book value and market value weights, and therefore, WACC will be different. WACC, calculate using the book value weights, will be understand if the market value of the share is higher than the book value and vice versa. Why do managers prefer the book value weights for calculating WACC? Beside
Words: 299 - Pages: 2
bright future, hence this lead me to choose accounting course. During previous diploma course, the main subjects I have studied are Basic Taxation, Corporate law and Governance, Management Accounting, Principle of Auditing, Business Economics and Finance Accounting. Studying these subjects, I have gained more understanding and knowledge about accounting course. It is not just about numbers but also included accounting principles, framework, and economy of countries and also cost management. These
Words: 314 - Pages: 2
but not functioned to produce financial reports. At this point, ATLAM was looking for better alternatives to upgrade the accounting system. They were considering the available alternatives; there were ACCPAC or SAP system. Zulkifli Osman, the Finance Manager was critically assessing the risk associated with the decision and he was going to have discussion with some of his members for this project. During the meeting discussion, Lim and Gopal who were User representative and User Project Manager
Words: 422 - Pages: 2
