Assignment 6 FIN321 Winter 2015 Using a Broker - Buying on Margin - Selling Short 1. Your friend Joe will begin saving for his retirement after he graduates in December. He is trying to decide whether he will employ the services of an investment company or build his own portfolio. Which do you think Joe ought to do? You know him as well as anybody! Explain to Joe why he ought to follow the path that you recommend. (Please talk directly to Joe!) Joe‚ you should invest your retirement savings
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Chapter 1 – Introduction to multinational finance Introduction of international business finance Three phases of business o Domestic phase : operations are confined within the boundaries of one country o International trade phase : the firm imports materials or export its product or both o Multinational phase : the firm establishes operations overseas Structure of a multinational corporation Board of Directors Management Shareholders Debt Assets Equity o o o o o The firm can be viewed
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1. What is the present value of the following uneven cash flow stream −$50‚ $100‚ $75‚ and $50 at the end of Years 0 through 3? The appropriate interest rate is 10%‚ compounded annually. PV=190.46 (SEE EXCEL FILE ATTACHED) 2. We sometimes need to find out how long it will take a sum of money (or something else‚ such as earnings‚ population‚ or prices) to grow to some specified amount. For example‚ if a company’s sales are growing at a rate of 20% per year‚ how long will it take sales to double?
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Ch. 1: 1. Career opportunities and fields of study in finance: A. Corporate finance B. Banking C. Investments D. International finance E. Mathematical finance (primarily involved in forecasting‚ econometric modeling‚ etc.) Note: In this course‚ we will be using the term shareholders frequently; shareholders are owners of the firm. If you buy 100 shares of stock in Microsoft Corporation‚ you are a co-owner of Microsoft Corporation. 2. Goal of the firm: Shareholder wealth maximization (making
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Alternative Financing Plans A. Short-term interest exp. (400‚000 + ½ (300‚000)) 5% = (550‚000) 5% = 27‚500 Long-term interest exp. (400‚000 + ½ (300‚000)) 10% = (550‚000) 10% = 55‚000 27‚500 + 55‚000 = 82‚500 Earnings before interest and taxes = 200‚000 Interest expenses = 82‚500 Earnings before taxes = 200‚000 – 82‚500 = 117‚500 Taxes = 117‚500 X 34% = 39‚950 Earnings after interest and taxes = 200‚000 – 82‚500 – 39‚950 = 77‚550 B. Short-term interest exp. ( ½ (400‚000)) 5% = (200
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Ethics and Compliance Paper FIN/370 Starbucks Coffee Company “To inspire and nurture the human spirit – one person‚ one cup and one neighborhood at a time ("Starbucks"‚ 2012).” Starbucks mission is to not only provide the highest quality of coffee but also make a positive impact on the world. Ethisphere Institute over the last six years has selected the World’s Most Ethical Companies and Starbucks has made the list every year. What are the key components that make Starbucks one of the most ethical
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FIN 571 FINAL EXAM 3 http://www.finalexamguideline.com/FIN-571-FINAL-EXAM-3-53.htm 1) Whenever a firm splits itself into separate units‚ with each unit having limited liability with respect to its financing‚ the capital structure of each unit becomes __________ 2) An investor’s risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true? 3) An all-equity-financed firm would __________. 4) The capital budgeting process can be broken
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FIN 571 Final Exam Question Answers By www.StudenteHelp.com Copyright. All Right Reserved By www.StudenteHelp.com Multiple Choice Question 51 You are provided the following working capital information for the Ridge Company: Ridge Company Account $ Inventory $12‚890 Accounts receivable 12‚800 Accounts payable 12‚670 Net sales $124‚589 Cost of goods sold 99‚630 Cash conversion cycle: What is the cash conversion cycle for Ridge Company? A. 38.3 days B. 46.4 days C. 83.5 days D. 129.9 days Find
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Case Study – Banning of Shark fin soup in Jade Restaurant. The refusal of not banning shark fin soup at Jade Restaurant can affect many stakeholders. This includes the owner/shareholder‚ suppliers‚ special interest groups (SIGS)‚ customers‚ and also the government. The owners and shareholders are definitely going to be affected because if the ban were to go through they would lost a portion of the profit that they would’ve earned if it weren’t for the ban. The suppliers are obviously going to be
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Working Capital Simulation Aljenette Brown FIN 571 December 14‚ 2014 Susanne Elliott This paper will analyze the Sunflower Nutraceuticals (SNC) and the decisions their company can make to increase working capital and maximize the organization’s growth potential. Moreover‚ this paper will examine some of the decisions made in each phase of SNC’s simulation‚ describe how SNC’s decisions affected their working capital‚ and evaluate the general effects associated with limited access to financing.
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