[pic] Faculty Communication, Media & Music Exam front sheet |Name exam |Financial Management | |Code exam |2410MJ123A | |Date |January 20th 2011 | |Duration
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individual and institutional investors with the investment philosophy of believing that they could get a superior return over the long run using a conservative, risk-averse and quality-oriented approach. Zeus have been measuring it’s return in an absolute basis however Abbott demanded for it to be in risk adjusted basis to be better determine if Zeus outperform the relevant indices. The main problem with the current measure is that it did not take risk into consideration. The main aim in this case study
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Elier Suarez Fin4514 M,W 9-10:15 Chapter 5 homework Problem 1: A. An indexed investment represents a high diversified type of securities without the risk of systematic market exposure. This form of risk cannot be diversified within the company because it represents that one company’s fragility within the market itself. B. a. An active approach toward rebalancing the policy brings competent flexibility to multiple time periods and a more favorable strategic asset allocation
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taking. Under the CAPM we are observing how much return Cisco’s investors are expecting. For the Calculation CAPM for CISCO we used numbers based off industry standards from S&P 500 and U.S. Treasury. CISCO Beta was calculated at 1.18 (source: http://finviz.com/quote.ashx?t=csco). For the risk free rate 0.17% was calculated based of the yearly US treasury rate from 2012 (source: http://www.treasury.gov ). 11.62% is the market risk based on the YTD return for the S&P 500 (source: http://money.cnn
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Grantham University Final Exam Chapter 2 Problem 2-4, Pearson Brothers recently reported an EBITDA (Earnings before interest, taxes, depreciation, and amortization) of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? (income statement) The taxable income would be 7.5 less 2 million less depreciation and amortization
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| | | |Brief | | | |A | |B | |Study Objectives | |Questions | |Exercises | |Exercises | |Problems | |Problems | | | | | | | | | | | | | |1. Understand the con- | |1, 2, 3, 4 |
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flow cash) Financial statements: Balance sheet The balance sheet Equity= assets - liabilities current assets current liabilities cash ! inventories ! acc receivable ! equipment ! plant accounts payable ! ! fixed assets long-term liabilities long-term debt ! total shareholders equity stock ! retained earnings ! total assets x total liabilities + equity x Figure 2 example of a balance sheet Financial snapshot: 1 moment in time
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Debt-equity ratio = ($2,162,080 + 3,825,000) / $9,466,820 Debt-equity ratio = 0.63 times Equity multiplier = $15,453,900 / $9,466,820 Equity multiplier = 1.63 times Times interest earned = $2,038,000 / $362,000 Times interest earned = 5.63 times Cash coverage = ($2,038,000 + 655,000) / $362,000 Cash coverage = 7.44 times Profit margin = $1,005,600 / $20,077,000 Profit margin = 0.0501 or 5.01% Return on assets = $1,005,600 / 15,453,900 Return on
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Solvency: ability to have cash to buy fixed assets and inventory (outflow cash) The balance sheet Equity= assets - liabilities current assets cash inventories Financial statements: Balance sheet current liabilities ! ! ! long-term liabilities equipment plant ! ! total shareholders equity stock ! long-term debt ! accounts payable ! acc receivable fixed assets retained earnings ! total assets x total liabilities + equity x Figure 2 example of a balance sheet Financial snapshot: 1 moment in time
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Larson−Wild−Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 1. Accounting in Business Text © The McGraw−Hill Companies, 2004 “I love chocolate, and so I’m having fun making money”—Elise Macmillan (Evan Macmillan on right) 1 Accounting in Business A Look at This Chapter Accounting plays a crucial role in the information age. In this chapter, we discuss the importance of accounting to different types of organizations and describe its many users and uses. We
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