Midterm Study Guide Fin 5170 Fall 2009 The exam will consist on multiple choices, and problems and may be an essay question. I will ask a maximum of two questions taken from the following material covered in class: Chapter 1 • Describe the concept of agency problems and different ways to ameliorate agency problems in a corporation Chapter 3 • Example 3.7 (pages 65-66) • Use the concept of arbitrage to explain the price of Security A in table 3.8, and Security B in table
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NAME Student number: STUDENT NUMBER Tutorial: TUTORIAL Quiz 1 will consist of 12 questions. On the actual quiz, the majority of the questions (if not all) will selected from the questions below. The selected question will have different input values, which will be randomly generated. You will be provided with the following instructions and annuity table during the quiz. Instructions: 1. You must complete a Generalised Answer Sheet for this exam. (a) Complete the top portion of the sheet,
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Week 5 Individual Assignment Tips: Part 1: • Determine which project might be implemented and why (e.g. feasibility study, breakeven analysis, etc.). Project Selection Criteria: Build a table with each project as a column heading • Completion Time • Cost ROI Approach: ROI (%) = Net Benefit / Project Cost 1- Approach Elements: Project Cost ROI in $ (Project Total in $) ROI in % on Specified Period= ROI in $ / Project Cost Net Benefit = ROI (%) – Project Cost Project Earnings on Specified
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Chapter 5 5.1 Fixed costs are not related to the volume of services delivered. Semi-fixed costs are fixed at two or values within relevant ranges. 5.2 Total fixed costs and total variable costs. 5.3 a) The cost-volume profit analysis is applied to organization’s costs and revenue structure that analyzes the effect of volume changes on cost and profits.b) It’s useful because they evaluate causes of action regarding pricing and introduction of new services. 5.4 a) The differences between per-unit
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crucial to be able to properly value a bond for finance. Two companies have been chosen to represent this action for this document Apple Inc. as well as IBM which are both in the technology sector and have long term debt, have bonds and also stocks available for sale. We are going to determine the length until maturity, the yield to maturity and then also the price of the bond today. While keeping this information in mind we can determine what time value of money illustrates about each bond. A
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to Find the Value of a Dividend Stock A dividend growth discount model provides a simple approach to value a stock with dividends that grow at a stable rate. Definition of 'Gordon Growth Model' A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. Given a dividend per share that is payable in one year, and the assumption that the dividend grows at a constant rate in perpetuity, the model solves for the present value of the infinite
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TIME VALUE OF MONEY FUTURE VALUE: What’s a $ today worth in the future. FORMULA: (1+I)N PRESENT VALUE: is a future amount of money that has been discounted to reflect its current value, as if it existed today. FORMULA: 1/(1+I)N LOAN PAYMENT Lump sum: a singel payment "Ordinary annuity - valuing a stream of payments at the end of each period Annuity Due – valuing a
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and she is required to work long hours during the week and even on weekends, leaving little time for outside interests. Her decision to work at this job is an example of (Points : ------------------------------------------------------------------------------------------------ BUSN 380 Week 1 Problem Set 1 FOR MORE CLASSES VISIT www.busn380study.com TCO 1 Time value of money relationships & applications; opportunity costs; personal financial statements -Problem Set 1
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• Write a 200- to 300-word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity. Describe the characteristics of each concept and provide an example of when each would be used. The future value, we measure the value of an amount that is allowed to grow at a given interest rate over a period of time. Assume an investor has $1,000 and wishes to know its worth after four years if it grows at 10 percent per year
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Evaluate a Financial Plan FIN/420 December 10, 2012 Evaluate a Financial Plan Financial planning is part of life and planning early in life makes saving and paying for expenses easier. From the monthly budget to a retirement plan organizing ones money to pay for future needs is important. This Evaluation for a Financial Plan starts with insurance needs, making the most on interest on one’s savings, types of loans, and asset allocation. Each area of the financial planning process needs to be addressed
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