Finance 451 Exam 1 Study Guide Chapter 13: Financial Statement analysis; notes * Having insurance increases the chance of something happening (moral hazard). * Insurance industry… * Hancock Bank got into investments that they couldn’t handle and it back fired; got bought out by Whitney Bank. * Hancock’s investments were “too risky” * Internal evaluation‚ good ratios vs. bad ratios‚ analyzing all parts of a company‚ ratio analysis. * Of interest to shareholders‚ creditors
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interests converse and connect with one another through their mobile phone and/or tablet. Much like web-based social networking‚ mobile social networking occurs in virtual communities. A current trend for social networking websites‚ such as Facebook‚[1] is to create mobile apps to give their users instant and real-time access from their device. In turn‚ native mobile social networks have been created like Foursquare‚ Instagram‚ and Path‚ communities which are built around mobile functionality. More
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Rate 20% (1) -(2‚000)= $2‚400 one year Rate 20% (2) (-2‚000)= $2‚880 two years B. What is the present value of $2‚000 discounted at 20% if it is received in one year? In two years? Rate 20 % (1) (-2‚000)= 1‚666 discounted one year Rate 20% (2) (-2000)= $1‚388 discounted two years B4. (Present value) What is the present value of $5‚000 to be received in two equal installments of ($2‚500)‚ four years and five years from today‚ when the annual discount rate is 10%? PV=FV/(1 r)ⁿ
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The Swift Company Exercise: Service level target: delivery within 2 hours. A: Existing Supply Chain. 1. Main Plant: Molding 20 duros/hr x 8 hrs Footpads 38 duros /hr x 8 hrs Add trim 28 duros/hr x 8 hrs Stack & Lord 36 duros /hr x 8 hrs Inventory: About one hour of work-in-process inventory is kept in between each process. Transit time to next step finishing plant takes 90 minutes. 2. Finishing Plant:
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Question 1 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years 1 ? 4 of $1350‚ 275‚ 875‚ and 1525. The company’s cost of capital is 10%. Calculate the payback period for this project. Select one: A. 3.33 years B. 3.67 years C. 4.00 years D. 4.25 years Question 2 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years
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Net Sales NPM = 960 / 15‚000 (in thousands) NPM = 6.4% Sales-to-total-assets (STTA) = Net Sales / Total Assets STTA = 15‚000 / 12‚000 (in thousands) STTA = 1.25 Equity Multiplier (EM) = Total Assets / Total Equity EM = 12‚000 / 12‚000 EM = 1 Total-debt-to-total-assets (TDTTA) = (Short-term debt + Long-term debt) / Total Assets TDTTA = (4‚600 + 2‚200) / 12‚000 TDTTA = 6‚800 / 12‚000 TDTTA = 0.5666 or 0.567 Return on assets model is Net Income / Total Assets and gives us an indication
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1. Hole Foods Donuts‚ Ltd. has generated profits of $2 per share for many years and has consistently paid 100% of those profits to shareholders via a dividend. Investors do not expect Hole Foods Donuts to grow in the future. The company has 200‚000 shares of stock outstanding worth $20 per share. Suppose the firm decides to eliminate its dividend and instead use the money to repurchase shares. A. Assuming that there are no taxes and that the repurchase announcement conveys no new information to
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1 NPV—Mutually exclusive projects Hook Industries is considering the replacement of one of its old drill presses. Three alternative replacement presses are under consideration. The relevant cash flows associated with each are shown in the following table. The firm’s cost of capital is 15%. a. Calculate the net present value (NPV) of each press. b. Using NPV‚ evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. PERSONAL FINANCE PROBLEM P9–11 Long-term
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REFLECTION JOURNAL Name: Modules 1 & 2 How to submit: 1. Click on ASSESSMENTS 2. Click on Module 2 Reflection Journal 3. Copy and Paste your Journal into the Student Comments Section 4. Click “Submit for grading” AND “Submit” Module 1: Driving is Your Responsibility: Please answer the following questions in complete sentences using proper spelling and grammar: Complete the K-W-L information below. K- What you Know List two things you know about driving. 1. Driving is fun but also
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Answers to Text Discussion Questions 1. Discuss market bubbles and offer an opinion on why you think investors have trouble spotting bubbles. 10-1. Markets are not always rational and the herd instinct of following the crowds often causes investors and others to ignore the signs that point to a bubble. Bubbles catch professional investors as well as the novice. 2. Describe the three heuristics that investors use as “rules of thumb.” 10-2. 1) Representativeness: People assess the chances
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