3-1 Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20‚000. What is the level of its accounts receivable? Assume there are 365 days in a year. Formula for DSO = Receivables/ Ave sales per day = Receivables/( Annual sales/365) = 20 days x $20‚000= $400‚000 Solution: AR = $400‚000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is
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10 years and $3000 per year for the last five years. To calculate the present value of these accumulated costs you need to calculate the present value of an ordinary annuity of $1‚000 for the first five periods plus the present value of an ordinary annuity of $2‚000 in periods 6 thru 15 plus the present value of an ordinary annuity in periods 16 thru 20. This is equal to: =1000 x PV of OA + 2000 x PV of OA + 3000 x PV of OA =1000 x 3.79079 + 2000 x (7.60608-3.79079) + 3000 x (8.51356-7.60608)
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mk This page intentionally left blank Actuarial Mathematics for Life Contingent Risks How can actuaries best equip themselves for the products and risk structures of the future? In this new textbook‚ three leaders in actuarial science give a modern perspective on life contingencies. The book begins traditionally‚ covering actuarial models and theory‚ and emphasizing practical applications using computational techniques. The authors then develop a more contemporary outlook‚ introducing multiple
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year additional expenditure‚ Rainbow can get a "Good As New" service contract that essentially keeps the machine in new condition forever. Net of the cost of the service contract‚ the machine would then produce cash flows of $4‚500 per year in perpetuity. Should Rainbow Products purchase the machine with the service contract? 3. Instead of the service contract‚ Rainbow engineers have devised a different option to preserve and actually enhance the capability of the machine over time. By reinvesting
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a)beta PART TWO: 1. . Annuity is fixed sum of money paid every year in at any other fixed interval shorter than a year. This annuity may be by way of return of some principal plus interest payment of against money invested or by way of payment of other dues such as pensions after retirement. In any case it represents out flow of cash from one account to in flow of cash to another account. In this way all annuities involve movements of cash or funds. Therefore all annuities are cash flows that can
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Dongyeon Kim 1408392 Di Roberto Matteo 1681386 Gutiérrez Agustina María Manuela Rinaldi Claudia Valeri Stefano 1672146 Case Study: Ocean Carriers Corporate Finance Class 16 Group Name: Soul Analysts Ltd Executive summary Ocean Carriers is contemplating the opportunity of stipulating a 3-year leasing contract that would require commissioning the construction of a new vessel. In the short term applied hire rates are decreasing‚ just as they should be on the recovery side starting
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Midterm Exam – October 17‚ 2012 SOLUTIONS Instructions: 1. Read the questions carefully. 2. Answer all questions on the following pages. 3. A financial calculator and a regular calculator are permitted. 4. A one-sided 8.5” x 11” formula sheet is permitted with formulas only. 5. The midterm has 11 pages‚ including 2 blank pages. 6. For Part 2‚ show all your work. 7. Midterm duration: 75 minutes. 8. Mark allocation: Shown on exam. Print your name: _________________________________________ Sign your
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the ease of formations of the aforementioned types of company‚ but offer some of the benefits of a corporation without the disclosures and filings. An LLC may usually have two of the characteristics of a corporation such as limited liability and perpetuity. The public corporation is the form of business that
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FIN 502 – Personal Financial Planning Chapter 1 – Module 2 Time value of money * How to compare monetary amounts you pay or receive at different times * The arithmetic with which we convert money between periods‚ or calculate what rate of return is implied by a given set of cash flows Single Period – Rate of Return * N = amount of years * I% = x (what we’re trying to find) * PV = How much it’s worth today * FV = How much it’s worth at maturity date
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The transfer of property act 1882 Immovable properties The definition of immovable properties it is negative definition‚ which say what is not an immoveable property. Section 3- of Transfer of property Act 1882-immoveable property does not include standing timber‚ growing crops or grass. Section 3- of The General Clauses Act 1897- “ Immovable property- Land Benefits to arise out of land- Profit Appendary (Exp- Rent‚ fishing rights‚ right to ferry‚ lease) Things attached to the earth or permanently
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