Definitions Steven Puryear Fin 370 10-6-2011 Mrs. Watson Definitions 1. Finance- The science of funds management. 2. Efficient Market- A market in which the values of all assets and securities at any instant in time fully reflect all available information‚ which results in the market value and the intrinsic value being the same. 3. Primary Market- A market in which new‚ as opposed to previously issued‚ securities are traded. The primary market provides the channel for sale of new
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QUIZ III TAKE HOME BMW India‚ seeing the sales of Mercedes Benz and Audi increase way beyond theirs in the first quarter of 2013 decided to start an aggressive sales campaign. As a part of their campaign an advertisement was made which featured BMW X5‚ Audi q7 and Mercedes Benz ml. The advertisement was shot in Manali Leh highway. The symbol of Audi and Mercdez Benz were blurred in the advertisement. It showed BMW X5 in a bright imperial blue colour driven by a young model wearing classy blue
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STAKEHOLDERS OF A COMPANY 1 A stakeholder is an individual or a group‚ which has a legitimate interest in a company. Interest in a stakeholder could mean several things. A stakeholder could be interested in the profits of the company‚ its ability to pay its creditors or how it gives back to the community it is operating in. The stakeholder concept was initially used in 1963 at the Stanford Research Institute through an internal memorandum‚ defining stakeholders as those groups without whose support
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Minicase 4 Yield Curve Hypotheses and the Effects of Economic Events CONCEPTS IN THIS CASE term structure of interest rates default risk risk premium yield curve expectations hypotheses segmented markets theory preferred habitat theory liquidity premium theory Your employer (a bank) has decided to offer five-year loans to its small business customers. You have been presented the task of determining what the appropriate minimum interest rate should be for the most creditworthy customer
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HW FIN 3331 Chapter 9 9.1. Warr Corporation just paid a dividend of $1.50 a share (that is‚ D0 = $1.50). The dividend is expected to grow 7% a year for 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? D0 = $1.50; g1-3 = 7%; gn = 5%; D1 through D5 = ? D1 = D0(1 + g1) = $1.50(1.07) = $1.6050. D2 = D0(1 + g1)(1 + g2) = $1.50(1.07)2 = $1.7174. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1.50(1.07)3 = $1.8376. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 +
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Debt is Good for You (01/25/2001) Franco Modigliani and Merton Miller published their famous theory about the optimal balance on debt and equity of the corporate finance. In the Modigliani –Miller theory they stated that the value of the firm is independent of firm’s capital structure. As the portion of debt goes up‚ the firm will be riskier‚ and the expected return will increase. In an efficient market‚ the business risk does not vary with leverage. But later‚ Modigliani –Miller theory modified
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Nareekan Wongwisetsiri Finance 317 Financial Statements Homework #1 1. Watson Oil recently reported (in millions) $8‚250 of sales‚ $5‚750 of operating costs other than depreciation‚ and $650 of depreciation. The company had $3‚200 of outstanding bonds that carry a 5% interest rate‚ and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows‚ the firm was required to make $1‚250 of capital expenditures on new fixed
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The first week of May‚ 2011‚ saw a broad commodities sell off‚ with commodity futures falling almost 7% and stocks linked to commodities down 5% from April 27‚ 2011 through May 5‚ 2011.1 Is this the end of the line for the bull market in commodities or just another stop along the way? Viewpoints caught up with Joe Wickwire‚ manager of Fidelity Global Commodity Stock Fund® (FFGCX | Get Prospectus Loading... )‚ for his thoughts on the recent sell off‚ and what it may mean for investors. What
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1.1) Belinda’s 2010-11 taxable income: Assessable Income Gross Salary $67‚500 Unfranked dividends $2‚300 Total Assessable Income $69‚800 Less Allowable deductions PAYG tax instalments deducted ($15‚500) Subscriptions ($130) Union fees ($600) Telephone expense ($280*30%) ($84) Total allowable deductions ($16‚314) Taxable Income $53‚486 Note: Stationery is considered to be expenditure of a private nature thus
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1. Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? (Points: 5) a. Cheers™ shareholders (the ex-partners) will now be exposed to less liability. b. Cheers will now be subject to fewer regulations. c. Assuming Cheers is profitable‚ of its income will be subject to federal income taxes. d. Cheers™ investors will be exposed to less liability‚ but they will find it more difficult to transfer
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