Basic Finance for Non-Finance Managers As a line manager‚ department head‚ entrepreneur or financier‚ you will at some point find yourself having to analyze a spreadsheet or have some form of financial recording to do as part of your job description. Spreadsheets‚ budgets‚ cash flow projections‚ business statistics‚ figures and the financial side of a business is not just meant for accountancy experts. Many are baffled by balance sheets‚ or confused by the financial statements of a business entity
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Financial Management FIN 5013 – Quiz 5 Chapter 4 Ali Nejadmalayeri October 23‚ 2007 NAME: 1. ID: __ __ __ __ __ __ __ __ __ __ __ __ __ __ Janet plans on saving $3‚000 a year and expects to earn 8.5%. How much will Janet have at the end of twenty-five years if she earns what she expects? AFV = $3‚000 × Enter 25 N Solve for (1 + .085) 25 − 1 = $3‚000 × 78.667792 = $236‚003.38 .085 8.5 I/Y PV -3‚000 PMT FV 236‚003.38 2. Winston Enterprises would like to buy some additional
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E5-11 a) Compute Payton’s gross profit. GROSS PROFIT = 900‚00 - 540‚000 = $ 360‚000 ______________________________________ b) Compute the gross profit rate. Why is this rate computed by financial statement users? (360‚000/900‚000)/100 = 4/10of 100 = 40% This is known as the GROSS PROFIT MARGIN. ______________________________________ c) What is Payton’s income from operations and net income? 1)Income from Operations = 360‚000 - 230‚000 = $130‚000. 2)Net Income = 130‚000 - 11‚000
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Chapter 8 Bond Valuations Bond Value = PV of coupons + PV of par Bond Value = PV annuity + PV of lump sum As interest rates increase‚ bond prices decrease and vice versa Interest Rate Risk The risk arises for bond owners from fluctuating interest rate‚ depending on how sensitive its
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1. What major requirements do client expect from their portfolio managers? We have two major requirements of a Portfolio Manager: 1. The ability to derive above average returns for a given risk class (large risk-adjusted returns); and 2. The ability to completely diversify the portfolio to eliminate all unsystematic risk. The client expect from their portfolio managers are to help them manage their money in less time. Most of the client requires a portfolio manager who can preserve
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FINANCIAL STATEMENT ANALYSIS Problem 13-1 You are given the following data on two companies M and N ( Figures are in Million) M N Sales $ 1080 $ 1215 Net Income 54 122 Investment 180 405 Required: A. Which company has the higher profit margin? B. Which company has the higher investment turnover ? C. Based on the data given‚ in which firm would you prefer to invest ? SOLUTION: a. Profit Margins [pic]
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Hilton is checking out of Hotels. Hilton Worldwide Holdings Inc.‚ a hospitality company‚ is engaged in the ownership‚ leasing‚ management‚ development‚ and franchising of hotels‚ resorts‚ and timeshare properties worldwide. A new strategy of hiking up their share prices led to the company’s growth significantly. Nonetheless‚ the fast growth in its business doesn’t comprise the hotel that they own The realization‚ that the firm had spent considerable amount of its time on escalating its business
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the single Banking software where the Bank has made substantial investments. This has helped the Bank provide services like ‘Any Branch Banking Facility’‚ Internet Banking and SMS Banking. Living up to the expectations and aspirations of the Customers and other stakeholders of being innovative‚ HBL... the single Banking software where the Bank has made substantial investments. This has helped the Bank provide services like ‘Any Branch Banking Facility’‚ Internet Banking and SMS Banking. Living up
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COMM370 – Alejandra Medina Practice for Lecture 12-13: Modigliani-Miller Propositions Question 1. Prove Modigliani-Miller proposition 1 with corporate taxes. As part of your answer‚ clearly state the underlying assumptions‚ explain the intuition underlying the proof‚ and conceptually interpret the meaning of the proposition. Note: you should be able to formally prove MM 1 & MM2 as we did in class. Question 2. Levered Inc. and Unlevered Inc. are identical in every respect except for capital
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Case 9: Horniman Horticulture 1. Assess the strengths and weaknesses of the company Horniman Horticulture. Strengths * Constantly growing firm with increasing revenue (15.5% in 2005)‚ net profit‚ total assets and high returns on equity (5.1% in 2005) * Large product offerings‚ with a recent increase of 40%. Majority of offerings are in high demand * Management (in regards to Bob Brown) has good ties with employees and customers * Tax expense hasn’t drastically
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