LECTURE NOTES 1 : INVESTMENTS by: Ms. Hazel M. Sarmiento Investments are assets not directly identified with the entity’s normal operating activities but are nonetheless acquired to: 1) generate income on idle cash; 2) exercise significant influence or control over another entity; 3) establish long-term relationships with suppliers and creditors; 4) accumulate funds for future use; 5) benefit from capital appreciation; or 6) protect from possible future risks. I. Investments
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M Sc Strategic Management Tutorials Long term Debt Finance Questions and Answers Using present value to value bonds A bond‚ from the perspective of the person issuing the bond is a form of long term debt. In the hands of the person who has acquired the bond it is an asset. The agency issuing the bond agrees to pay a fixed sum of money to the holder of the bond for a period of years and then‚ at the end of that period‚ to pay back the face value of the bond. Bonds can be issued
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number of addition shares offered for a right M = market price before issuing S = subscription or issue price of the rights issue Ex-right share price 7. Annual Equivalent Value (Equivalent annual annuity)
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Present and Future Value HCA 270 Calculate the future value of the following: * $5‚000 compounded annually at 6% for 5 years $6‚691.13 * $5‚000 compounded semiannually at 6% for 5 years $6719.58 * $5‚000 compounded quarterly at 6% for 5 years $6734.28 * $5‚000 compounded annually at 6% for 6 years $7092.60 Answer the following: The conclusion that can be drawn about the frequency of compounding interest is that the more frequency the better. The conclusion
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assignments will not be accepted whether for technical or any other reason. Decimal places: please keep at least 4 in your calculations and 2 in your final answers. (2) (3) (4) (5) (6) (7) (8) Notations We may denote the PV and FV annuity factors respectively by PVAF(r‚n) and FVAF(r‚n)‚ i.e.: 1 − (1 + r ) − n (1 + r ) n − 1 PVAF (r ‚ n) ≡ ; FVAF (r ‚ n) ≡ r r Question 1 – TVM (20 marks) On January 1‚ 2009 Joe Tall signed a contract to play for the York Dunks that guaranteed him‚ as
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a thesis ON returns given by ulip funds of [pic] [pic] submitTED BY: GAURESH S. SHET TALAULIKAR 8NBGP028 INDEX |Sr. No. |Title |Page No | |1 |Certificate |2 | |2 |Declaration
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15 years after retiring and will receive first annual pension payment one year after retirement. The discount rate is 8%. The relevant present value and future value factors are: Future value of 1 at 3% for 25 periods 2.094 PV of an ordinary annuity of 1 at 8% for 15 periods 8.559 PV of 1 at 8% for 25 periods 0.146 What is the projected benefit obligation on December 31‚ 2011? a. 209‚400 b. 261‚669 c. 100‚000 d. 124‚961 Answer: b Solution: Future salary – PBO (500‚000
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250‚000 Less Accum. Depr (100‚000) Book Value 150‚000 Present Value of Note 185‚323 Book Value (150‚000) Gain on sale 35‚323 b) Interest received on bonds for 10 years 300‚000 X 9 27‚000 i. n 10 interest 11 Present Value of Ordinary Annuity Rents X PVF OA PV 27‚000 X 5.88923
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following the law and giving the next of kin‚ Gowramma‚ the mother of the deceased employees‚ the usual statutory payments and further conferred on her a range of benefits on compassionate grounds - a onetime payment of Rs. 11 lakh and a monthly annuity of Rs. 15‚000/- for rest of her life. This act taken up by the company was ethically justified as the loss of a life can never be bartered with monetary benefits‚ but the maximum comfort could be provided to the family in this circumstance. As per
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TABLE OF CONTENTS About our Firm: 1 A summary of the qualifications of our team of experts who are ready to help you. Why should I learn more about estate planning? 3 What is estate planning? 4 Assessing your situation‚ drafting the documents‚ titling your assets. Estate planning worksheet 6 This provides the family background information needed to draft your estate planning documents. Plan of Distribution 10 Asset Checklist 12 Supplies facts
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