FIN 301 HW Chapter 1 (Odds 1-17) 1. Define shareholder wealth. Explain how it is measured Shareholder wealth is represented by the market price of a firm’s common stock. It is measured by the market value of the shareholders’ common stock holdings 2. Which type of corporation is more likely to be a shareholder wealth maximizer -one with wide ownership and no owners directly involved in the firms management or one that is closely held. A closely held corporation 3. It has been argued that shareholder
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Harvard Business School 9-799-051 December 16‚ 1998 Retail Financial Services in 1998 Delivery of retail financial services in the US was undergoing substantial realignment. With the relaxation of regulatory constraints on traditional financial intermediaries—banks‚ mutual funds‚ insurance companies‚ and brokerages—products and services were becoming increasingly similar. Banks and insurance companies were selling mutual funds‚ and Fidelity and Schwab were offering a full line of banking products
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Faculty of Actuaries Institute of Actuaries EXAMINATION 11 April 2005 (pm) Subject ST4 Pensions and other Benefits Specialist Technical Time allowed: Three hours INSTRUCTIONS TO THE CANDIDATE 1. Enter all the candidate and examination details as requested on the front of your answer booklet. You have 15 minutes at the start of the examination in which to read the questions. You are strongly encouraged to use this time for reading only‚ but notes may be made. You then have three hours to
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Chapter 1 Note: the summaries at the end of each chapter are good study tools. Corporations A corporation is a permanent entity‚ legally distinct from its owners‚ who are called shareholders or stockholders. A corporation confers limited liability to its owners: shareholders cannot be held personally responsible for the corporations’ debts; they only stand to lose their investment. To incorporate‚ you work with a lawyer to prepare articles of incorporation‚ which set out the purpose of the
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Chapter-1 Industry Profile * History of Insurance * Types of Insurance * Life Insurance * Non Life Insurance | * Development of Life Insurance in India * Development of Life Insurance in Rural India * IRDA (Insurance Regulatory Development Authority) * Advantage of Life Insurance * Limitation of Life Insurance | The History of Insurance Although insurance may have been used by the Babylonians‚ the Greeks and the Romans‚ insurance in the modern
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0‚ and FV = 5000. Solve for PV = $1‚292.10. 5-3‚ $250‚000*(1+i) 18=$1‚000‚000(1+i) 18=$1‚000‚000/$250‚000(1+i) 18=41+i= (4) 1/18 I=1.08006-1I=0.08006 5-5‚ 1. Amount of 42‚180.53 2. An annual PMT of $5000 Rate of Return i =12% FV of annuity due is FVA= PMT*[FVIFA (i‚n)] = PMT*[(1+i)^n - 1]/I Here we have an initial fixed amount of 42180.53 which will also row annually at 12% + the annual PMT of 5000. So we have FVA = 42180.53*(1+12%)^n + 5000*[(1+12%)^n-1]/12% = 250‚000 42180.53*1
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America alone‚ the insurance business employed about 2.31 million people in 2008‚ and insurance gross premiums totaled $1.13 trillion‚ making the U.S. the world’s largest insurance market. For 2009‚ life‚ accident (including supplemental health) and annuity premiums in the United States will total an estimated $679 billion. Property and casualty premiums will total about $450 billion for 2009. U.S. life insurance firms held about $4.51 trillion in assets in 2008‚ according to the Federal Reserve Bank
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TEST 2 MGF 301 Corporation Finance Fall 2013 Please sign name in box (Note: Total Points = 100; Multiple Choice = 4 points each unless otherwise indicated) 1. YT Inc. is considering implementing a new project. Which of the following is a cash flow that should be taken into account for capital budgeting purposes? (a) Expected lost sales in a related YT Inc. product caused by the new product (b) The annual bonus paid to the YT Inc. President based on last year’s earnings
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Which one of the following statements is correct concerning annual percentages rates (APRs)? Answer: The APR is equal to the monthly interest rate multiplied by 12 Give an interest rate of zero percent‚ the future value of a lump sum invested today will always: Answer: remain constant Answer: II and IV A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a: corporation The capital structure of a firm refers to the
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TUTORIAL EXERCISE WEEK 24 INTERNATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE 1. By investing in the form of debt rather than equity‚ companies may be able to reduce their taxes (because principal repayments are treated as a return of capital and are not taxed) and to avoid currency controls (because governments are more reluctant to block loan repayments‚ than dividend payments). 2. Use the interest rate parity: One year forward rate: £1*1.13 = $2*1.10 ⇨ £1 = $1.9469‚ which is 2.65%
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