Financial Terms and Definitions Your Name FIN/370 April 5‚ 2012 Professor Professor Name 1. Finance: Finance is the study of how people and businesses evaluate investments and raise capital to fund them. 2. Efficient market: Efficient market is the concept that all trading opportunities are fairly priced. 3. Primary market: Primary market is a part of the financial market where new security issues are initially bought and sold. 4.
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Financial Leverage Problem – due Mon March 4‚ 2013 Resource: Chapter 20‚ Mayo‚ H. B. (2012). Basic finance: An introduction to financial institutions‚ investments‚ and management (9th ed.). Mason‚ OH: Thomson. Firm A has $20‚000 in assets entirely financed with equity. Firm B also has $20‚000 in assets‚ financed by $10‚000 in debt (with a 10 percent rate of interest) and $10‚000 in equity. Both firms sell 30‚000 units at a sale price of $4.00 per unit. The variable costs of production
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Problem #1‚ Chapter 20 1. Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) a. What is the operating income (EBIT) for both firms? Units sold*price per unit
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Syllabus School of Business FIN/370 Version 7 Finance for Business Copyright © 2012‚ 2011‚ 2010‚ 2008‚ 2006 by University of Phoenix. All rights reserved. Course Description This course introduces the student to the essential elements of finance for business. Emphasis is placed on financial management‚ financial markets‚ and the tools‚ techniques‚ and methodologies used in making financial decisions. Topics include: Financial planning‚ working capital management‚ capital budgeting‚ long-term
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Financial Terms and Roles Kelly L. Banks FIN/370 May 23‚ 2012 Richard Harrell Financial Terms and Roles Finance: Finance is the study of how individuals and organizations identify how they will make investments. Efficient Market: Market that displays data that is readily available to all that need to make a decision on whether to invest or sell securities Primary Market: Market in which new securities are bought and sold. Secondary Market: Market where you sell shares that were previously
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Defining Financial Terms Week 1 FIN 370 Defining Financial terms * Finance * Finance is the study of how people and businesses evaluate investments and raise capital to fund them. Our interpretation of an investment is quite broad. * Business use finance to study every decision they make from investing in a product to market short term or long term‚ and if the ROI is worth-while or not. Firms must also use this study when recruiting vendors‚ sub-contractors‚ and even fresh
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DIFFICULTY: BASIC Ross - Chapter 006 #13 SECTION: 6.2 TOPIC: CALL PROVISION TYPE: DEFINITIONS 2. An 8 percent semiannual coupon bond is priced at $1‚204.60. The bond has a $1‚000 face value and a yield to maturity of 4.88 percent. How many years will it be until this bond matures? A. 15.91 years B. 8.00 years C. 8.65 years D. 17.29 years E. 16.00 years BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #84 SECTION:
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(2005). Financial management: Principles and applications (10th ed.). Upper Saddle River‚ NJ: Pearson/Prentice Hall. Mayo‚ H. B. (2007). Basic finance: An introduction to financial institutions‚ investments‚ and management (9th ed.). Mason‚ OH: Thomson. Markkula Center (2007). Promoting a Culture of Integrity: Rebuilding After a Crisis. Retrieved August 20‚ 2011‚ from url: www.scu.edu/ethics/practicing/focusareas/business/renewing-hp.pdf Sulock‚ J. M. & Dunkelberg‚ J. (1997). Cases in financial management
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Fin 370 Week 2 Individual Assignment Chap. 14 Questions 14-1‚ 14-3‚ 14-4 Chap. 15 Questions 15-12A‚ 15-13A Question 14-1 What are financial markets? What function do they perform? How would an economy be worse off without them? Financial markets report price for each good; they are institutions and procedures that facilitate transactions in all types of financial claims (securities). They exist in order to allocate the supply of savings from those economic units with a surplus to those
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Defining Financial Terms FIN/370 March 7‚ 2013 Defining Financial Terms 1. Finance a. The study of how people and businesses evaluate investments and raise capital to fund them 2. Efficient Market b. Markets where all important information is available to all the different participants at the same time. The prices also correlate with the available information c. Stock markets are an example of efficient market 3. Primary Market d. This is where the buyer
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