Name:__________________________________________________________________ Class:______________________________________ Date:____________________ Finance 455 (9:40 class) Examination 2 Monday‚ November 4‚ 2013 9:40 a.m. - 10:55 p.m. 20 Questions 100 points Form (A) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Use a pencil. The proctor is leaving at 10:55 sharp. Calculators permitted‚ but no sharing. Leave your ID where the proctor can check it. All questions are worth five (5) points
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Corporate Finance AIG Accounting Scandal Explained December 8th‚ 2012 ________________________________________________________________________________ On February 9th‚ 2006‚ the SEC and the Justice Department settled with AIG for an amount in excess of $1.6B related to alleged improper accounting‚ bid rigging (defined by Investopedia as a scheme in which businesses collude so that a competing business can secure a contract for goods or services at a pre-determined price)‚ and practices involving
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Raising Finance Source of finance Description of source of finance Advantages Disadvantrages Personal sources Peronal sources tend to be the first form of finance used by very small firms. And important personal source of finance is the savings that the entrepreneur accumulated before starting up the business. #Savings are a cheap form of finance as they do not involve paying any interest. #Using savings enables the owner to keep control of the business. This is especially valuable to those
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Week 1 Capital Budgeting I Tutorial: Chapter 1‚ 2 Chapter 1 Introduction to Corporate Finance Question 3: Investment and financing decisions Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions c. Closely held and public corporations d. Limited and unlimited liability. Answer a. Financial assets‚ such as stocks or bank loans‚ are claims held by investors. Corporations sell financial assets to raise
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Lease versus Buy Analysis Why Buy It When You Can Lease It? Questions: 1. What are the different kinds of leases available and which one would be best suited for Paulo’s restaurant? Explain why. Leases can be broadly categorized into two types‚ financial and operating. Financial leases are generally longer-term‚ fully amortized‚ and not cancelable without a hefty termination penalty. Operating leases are usually shorter-term‚ partially amortized‚ and cancelable on short notice. Financial leases
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Personal Finance Chris Cannard‚ Van Trinh‚ Jommel Esteybar‚ Edward Sy‚ Cricket Williams‚ Trey Vogel San Jose State University Abstract Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for retirement. It offers tips to improve your financial standing
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Solutions to Chapter 14 Introduction to Corporate Financing 14-1 1. a. Number of Shares = Par value of issued stock/par value per share = $60‚000/$1.00 = 60‚000 shares b. Outstanding shares = Issued shares – Treasury stock = 60‚000 – 2‚000 = 58‚000 shares c. The firm can issue up to a total of 100‚000 shares. Because 60‚000 shares have been issued‚ another 40‚000 shares can be issued without approval from share holders. 2. a. The issue of 10‚000 shares would increase
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According to Emery‚ Finnerty‚ and Stowe (2007) the 12 Principles of Finance are divided into three groups that include: Group 1 Competition in Economic environment A. The Principle of Self-Interested Behavior: Theory suggests people behave in a mannerism that is most beneficial for them. B. The Principle of Two-Sided Transactions: Theory suggests there are two perspectives or positions in every situation. C. The Signaling Principle: Theory suggests people make assumptions based on actions
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Determinants of corporate performance Analysis of the determinants of corporate financial performance is essential for all the stakeholders‚ but especially for investors. The Anglo-Saxon corporate governance focus on maximizing shareholder value. This principle provides a conceptual and operational framework for evaluating business performance. The value of shareholders‚ defined as market value of a company is dependent on several factors: the current profitability of the company‚ its risks‚ its
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MMM041 Business Finance Assignment 2012/13 |Module Convenor | Dr Jessica Yang | |Group Members |Zhengyu Lu 21001941 | | | |Chenyu Wu 21028178 | | | |
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