Slide 4.1 Corporate Financial Management‚ 5th edition Glen Arnold Mathematical Tools For Time Value of Money Glen Arnold‚ Corporate Financial Management‚ 5th Edition © Pearson Education Limited 2013 Slide 4.2 Simple Interest and Future Value • Simple interest A sum of £10 is deposited in a bank account that pays 12 per cent per annum. At the end of year 1 the investor has £11.20 in the account. F = P(1 + i) 11.20 = 10(1 + 0.12) where F = Future value‚ P = Present value‚ i
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--Submitted by Jonathan Weiner‚ 1995 Pulitzer Prize-Winning Author 5. Why does a year consist of 365 days and a day of 24 hours? Answer: A year‚ 365 days‚ is the time it takes for the Earth to travel around the Sun. A day‚ 24 hours‚ is the time it takes for the Earth to spin around once on its axis. --Submitted by Leslie Sage‚ Nature Magazine 6. Why is the sky blue?
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Chapter 2 problem 2-8‚ p. 79 The Wendt Corporation had $10.5 million of taxable income. a. What is the company’s federal income tax bill for the year? Answer: $10.5 x 0.35 = $525‚ 000.00 b. Assume the firm receives an additional $1 million of interest from some bonds it owns. What is the tax on this interest income? Answer: $1‚000‚000.00 x 0.35 = $350‚000.00 c. Now assume that Wendt does not receive the interest income but does receive an additional $1 million as dividends
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Contents page Introduction……………………….. Page 3 Ratio analysis…………………….. Page 4‚5‚6‚7‚8‚9 Conclusion/Recommendation…...Page 10 References……………………….. Page 11‚12 Appendix…………………………..Page 13 Introduction The role given for this report is to show a financial analyst acting on behalf of a large institutional investor advising them on their future investment in Sainsbury plc. This report will explore calculations of the financial ratios‚ such as gross margin which measures the performance
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Accounts Receivable ÷ Sales x 365 Days • Sales to Inventory Ratio provides a yardstick for comparing stock-to-sales ratios of a business with others in the same industry. A high ratio may indicate that sales are being lost because of low inventory and/or customers are buying elsewhere
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$20‚166.30. This number is not totally accurate‚ but is an approximation of lost. The amount will always change significantly because r1‚ r2‚ and r3 are numbers generated randomly. To get a close approximation the breakdown will have to consist of 365 to account for
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1. Construct a balance sheet for Sophie’s Sofas given the following data. (Be sure to list the assets andliabilities in order of their liquidity.) | Cash balances | = | $ | 8‚000 | Inventory of sofas | = | $ | 180‚000 | Store and property | = | $ | 80‚000 | Accounts receivable | = | $ | 20‚000 | Accounts payable | = | $ | 15‚000 | Long-term debt | = | $ | 150‚000 | | BALANCE SHEET OF SOPHIE’S SOFAS | Assets | | Liabilities & Shareholders’ Equity | | Cash | $ |
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Chapter 8 Tom has a DSO of 20 days. The company’s average daily sales are $20‚000. What is the level of its accounts receivable? (365 days in a year) DSO=Receivables/(Annual sales/365)=20 days So‚ Receivables/($20‚000/365days)=20 days Receivables/54.79=20‚ Receivables=$1095.89 A company has a profit margin of 10% and an equity multi-plier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE? () Answer: B A‚ 10% B‚ 40%
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Title Page Date: 12/12/09 The following report is designed for the purpose of a business analysis. I have chosen to analyse Mitchells & Butlers PLC by firstly‚ looking closely at the annual report produced by the company over a two year period and secondly‚ by researching their financial activities further than the annual report explains. I will compare and contrast ratios to help give the reader a better understanding of the company’s profitability‚ liquidity‚ activity and leverage.
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Credit Appraisal for: GRILL ‘N’ CHILL PVT (LTD) Prepared By : Mandivei Ashly Check By : T Mutambanadzo BORROWER KYC COMPLIANCE : this is a new relationship with the client OWNERSHIP : Moyo Sarah 80% and Moyo Lingiwe 20% DIRECTORS : S Moyo and L Moyo. GENERAL INFORMATION Date of establishment : 1 December 2012 Relationship since : n/a Company last visited : 15 November
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