a. Cash is a financial asset because it is the liability of the federal government. b. No. The cash does not directly add to the productive capacity of the economy. c. Yes. d. If the economy is already operating at full capacity‚ and you now command the additional purchasing power provided by the 10 billion‚ then your increased ability to purchase goods must be offset by a decrease in the ability of others to purchase goods. Thus‚ the other individuals in the economy can be made worse off by
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Company has a separate legal entity from its members‚ can sue or be sued on its own behalf. As illustrated in Foss v Harbottle (1843)‚ the proper plaintiff is the company itself. In other words‚ directors have the power to decide whether or not to sue in protection of the company. However‚ very often‚ the persons who commit misconduct are the major controller of the company and improbable to permit the company to sue. A common law right is therefore reserved for shareholders to sue the wrongdoers
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EF4313 - Individual Case Questions: “Massey-Ferguson‚ Ltd. (1980)” You are responsible for handing in written answers to the following questions drawn from the Massey-Ferguson case. You can work with others on this assignment‚ but each individual must hand in their own set of answers. 1. Net sales for Massey-Ferguson actually increased between 1979 and 1980. Despite this‚ net income and income from continuing operations both dropped sharply in 1980. Which item on the income statement
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Financial Management Assignment (10 Sep‚ 2012) ------------------------------------------------- Ch. 5: 1 (a-e)‚ 4‚ 5‚ 7‚ 10‚ 11‚ 12‚ 15 ------------------------------------------------- FM1 Takumi KAWAI‚ Pham NGUYEN‚ Yang CHEN‚ Bi CHAO #1 a. What is the payback period on each of the following projects? Payback period: A 3 years‚ B 2 years‚ C 3years b. Given that you wish to use the payback rule with a cutoff period of two years‚ which projects would you accept? “B” Only B meetsthe
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Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.75 million per year for 10 years. The opportunity cost of capital is 12 percent‚ which reflects the project’s business risk. Suppose the project is financed with $5 million of debt and $5 million of equity. The interest rate is 8 percent and the marginal tax rate is 35 percent. The debt will be paid off in equal annual installments
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QUESTION 1: 1. If the first deposit is at 36 years and the last expected deposit is at 65 years‚ then annual deposits will be made for 30 years. Expected annual withdrawals are $90‚000 for 15 years from the retirement fund with a bank that offers compound interest of 8% annually. Calculation Present value (PV) =? Future value (FV) = (90‚000*15) = $1‚350‚000 Periodic payment amount (PMT) =? Interest rate per period (Rate) = 8% or 0.08 Number of payment periods (Nper) = 30 Using the Excel
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Investment in Assets and required returns · Cash flow determination · Non-DCF and DCF techniques Case: Investment analysis and Lockheed Tri Star Assignment Questions 1. Compute the payback‚ net present value (NPV)‚ and internal rate of return (IRR) for this machine. Should Rainbow purchase it? Assume that all cash flows (except the initial purchase) occur at the end of the year‚ and do not consider taxes. 2. For a $500 per year additional expenditure‚ Rainbow can get a "Good As New" service
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Chapter 06 Discounted Cash Flow Valuation Multiple Choice Questions 1. An ordinary annuity is best defined by which one of the following? A. increasing payments paid for a definitive period of time B. increasing payments paid forever C. equal payments paid at regular intervals over a stated time period D. equal payments paid at regular intervals of time on an ongoing basis E. unequal payments that occur at set intervals for a limited period of time 2. Which one of the following
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Traditional Trade Finance Definitions Product Definitions for Trade Finance BAFT-IFSA Global Trade Industry Council February 2012 Product Definitions for Traditional Trade Finance Section 1: Introduction Banks have long provided trade finance services - processing information‚ managing documents‚ providing financing‚ and facilitating payments related to trade transactions through various products. With the advent of technology‚ new variations of trade finance products (specifically new
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the determinants of corporate investment‚ financing‚ hedging‚ payout‚ and executive compensation policies. The course will provide an analysis of the determinants of each policy as well as the implications for shareholder value. While the basic economic insights will be presented through simple examples‚ the course is quantitative in nature. Course material The reference textbook is Corporate Finance by Jonathan Berk and Peter DeMarzo‚ Pearson International Edition‚ 2nd Edition‚ (BDM hereafter).
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