1) What are a bond’s key features? a) The promises of the bond issuer and the rights of the bondholders are set forth in great detail in a bond’s indenture. b) The term to maturity of a bond is the number of years the debt is outstanding or the number of years remaining prior to final principal payment. The maturity date of a bond refers to the date that the debt will cease to exist, at which time the issuer will redeem the bond by paying the outstanding balance. c) The par value
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-260 | TOTAL OUTFLOWS | -1550 | -1690 | -1690 | -1560 | -1300 | -780 | -260 | PVF @11.7% | 0.89525 | 0.80148 | 0.71753 | 0.64237 | 0.57508 | 0.5148 | 0.4609 | PV | -1387.65 | -1354.5 | -1212.63 | -1002.1 | -747.61 | -401.583 | -119.84 | PV OF CASH OUTFLOWS | -6225.92 | | | | | | | EBIT | 870 | 1,131 | 1,131 | 1,044 | 870 | 522 | 174 | START UP MARKETING EXPENSES | -90 | 0 | 0 | 0 | 0 | 0 | 0 | ADJUSTMENTS FOR DEPRECIATION: | | | | | | | | ADD: SLM DEPRECIATION | 50 | 50
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will explain the financial position of OHF and offer recommendations to strengthen OHF’s financial position. Included in the evaluation will be an explanation of the principles of finance and how they relate to OHF, a comparison of net incomes and cash flows, a comparison of the market value of an asset and the book value, the addressing of OHF’s strengths and weaknesses and recommendations to further strengthen OHF. Principles of Finance and how They Relate to OHF The principles of finance are an
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Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter
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Why does Dow want to buy Rohm and Haas? Was the $78 per share bid reasonable? Why was the deal structured as all cash? Dow Chemical (“Dow”) wants to acquire Rohm and Haas (“Rohm”) for its strong operational and strategic fit. When Liveris became Chairman and CEO of Dow, he shifted the focus to growth and profitability by becoming an asset light producer of commodity chemicals and becoming a high-valued-added producer of specialty chemicals and advanced materials. This combination is a step in
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A.c.d 3. B 4. B,d 5. C 6. B,c 7. B,d 8. A 9. A,b,d II. Discussion Question: 1) The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it. 2) Because most managers, regardless of their area of responsibility (sales, production, etc.) will have
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the information provided to measure the financial performance of the business over the accounting period. The information is also very vital for them to make economic decisions regarding the entity operation. In addition, accounts keep track of cash inflows and outflow. Transaction recorders who are bookkeepers and decision makers like stockholders and managers have to make budgets, projections, financial reports, highlight areas of profitability or loss according to the accounts, to provide factual
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this fixed asset, will the benefits to the company be greater than the cost of the asset?" In essence, we are placing the cash inflows and outflows on a scale (similar to the one above) to see which is greater. A complicating factor is that the inflows and outflows may not be comparable: cash outflows (costs) are typically concentrated at the time of the purchase, while cash inflows (benefits) may be spread over many years. The time value of money principle states that dollars today are not the
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Introduction | This is the assignment for the Understanding Financial Management unit. The aim of this unit is to develop understanding of finance within the context of an organisation, as required by a practising or potential middle manager.The task requires you to demonstrate your understanding of finance and the value of recording financial information within the context of your organisation. You are then asked to explain the process of budget setting in the organisation and how budgetary
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in the organization is the dividend policy. Once a company makes a profit, management must decide on what to do with those profit. Remembering the financial panic of 2008, many firms adhered to a “fortress balance sheet” mentality, with cash balances remaining near all-time highs and balance sheets less burdened by debt than before the financial crisis. Despite the health of capital markets and corporate balance sheets, the forecast for the global economy remains bleak: unemployment in
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