sales or revenue.Asset turnover can increase due to a reduction in capital employed.Companies wilth low profit margins tend to have high asset turnover.Companies with high profit margins tend to have low asset turnover. Inventory turnover:The average time an inventory is held and
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College of Business and Finance The MBA Program Financial Management (FINC 501) 1st Semester (2012/2013) Final Exam Instructor: Dr. Wajeeh Elali Date: December 13, 2012 Time: 6:00pm -8:00pm |Student Name: | |Student ID: | ***Suggested Solutions*** INSTRUCTIONS: □ This is a CLOSED BOOK examination.
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FIN 5439-Capital Structure and Risk Management - Quiz 1– Nimalendran This is an individual quiz and you should submit the answers on-line by the scheduled date. You are allowed to use any resources EXCEPT help from any other person. You are allowed to use EXCEL for the calculations. There are ten questions 1. Barkley Credit Union sets a low annual percentage rate (5%) for all its credit card customers instead of basing the interest rates on the customers’ credit scores. Consequently
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------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- COURSE: HAME507-01 Sep 17, 2014 Mastering the Time Value of Money ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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1 . A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firm’s cost of capital is 12 percent. a. Compute the internal rate of return and the net present value. a. NINV = $20,000 and NCF = (5000 4000)(1 .4) + 4000 = $4600/year
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Texas BA II Calculator Workshop CHARTERED FINANCIAL ANALYST Setting up your BAII Calculator Workshop Setting up your calculator (BAII Plus) Decimal places &|F! Set to mathematical precedence &|"&! No. of payments per year &-K Clear time value calculations &0 Calculator Workshop Memory function The calculator can store numbers for you Example: You calculate the answer to 2 + 3.5 = 5.5 and then wish to store it Press D then K (5.5 has now been stored and assigned to button
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FVn = PV*(1+i)^n | PV = FVn / (1+i)^n Present Value of annuity (PVA): the present value of the cash flows from an annuity, discounted at the appropriate discount rate Individual Cash Flow (CFn): Present value of annuity equation: CF/I x [1-1/(1+i)^n] Present Value of Ordinary Annuity: ***PMT x ((1-(1/1+i^n))/i) PVAn = CF x 1-1/(1+i)^n / i PVAn = present value of an n period annuity | CF = level and equally spaced cash flow | I = discount / interest rate | n = number of periods PVAn
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Chapter One: Introduction Introduction: In our country, bank institutions play a vital role for overall economic growth of the country. People save their money by depositing in banks and banks collect their funds which are investing in further investment. Banks collect their funds with various types of deposits. In our study, we discussed about fixed deposit scheme and deposit pension scheme. Here, we see that both types of deposits’ have different interest rate in different banks. When a fixed
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CT1 – P XS – 13 Series X Solutions ActEd Study Materials: 2013 Examinations Subject CT1 Contents Series X Solutions If you think that any pages are missing from this pack, please contact ActEd’s admin team by email at ActEd@bpp.com. How to use the Series X Solutions Guidance on how and when to use the Series X Solutions is set out in the Study Guide for the 2013 exams. Important: Copyright Agreement This study material is copyright and is sold for the exclusive use of the purchaser. You may
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Will Semsch 17/02/2015 Case Study #1 In offer number one you would receive $1,000,000 now, $200,000 from year 6-15, then 3,000,000 if the product did $100,000,000 in sales, which had a 70% probability. To calculate to present value of 3,000,000 in 15 years you first have to multiply it by the possibility, 0.7 giving you 2,100,000. I then used the equation. 2,100,000* 1/(1.1)^15 giving an answer of $502,723.30. After that I calculated the value of the ordinary annuity from year 6-15 by using
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