Maximum number of MBA aspirants specialise in finance these days and this trend is because of the numerous possibilities that an MBA-Finance offers you as far as your career is concerned. An MBA-Finance will include apart from the usual compulsory courses there are courses in Investment Management‚ Taxation and Tax Planning‚ Corporate Valuation‚ International Finance‚ Management Control System‚ Insurance Management‚ Financial Statement Reporting and Analysis and Management of Financial Services.
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Final Exam Practice Problems 1. Firm ABC’s only outstanding debt is $100‚000 worth of coupon bond (market value). Its yield to maturity is 8%. Given that its tax rate is 40%‚ what is its effective cost of debt? Effective cost of debt = cost of debt * (1-tax rate) =8%*(1-40%)=4.8% 2. Firm ABC has a stock currently traded at $20. The next year’s dividend will be $0.20. The dividend growth rate is forecasted to be 6% forever. Risk-free rate is 3%‚ and market risk premium is 4%. Assume that Constant
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24. We can use the debt-equity ratio to calculate the weights of equity and debt. The debt of the company has a weight for long-term debt and a weight for accounts payable. We can use the weight given for accounts payable to calculate the weight of accounts payable and the weight of long-term debt. The weight of each will be: Accounts payable weight = .15/1.15 = .13 Long-term debt weight = 1/1.15 = .87 Since the accounts payable has the same cost as the overall WACC‚ we can write the equation for
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Finance Lecture 2 Online practice exercises: 1 of 3 ID: ACST201.01.102.L Calculate the accumulated (future) value (S) when $70‚000 is invested at 2.04% pa simple interest for 380 days. Give your answer in dollars and cents to the nearest cent. S = $ [1 out of 1]- Feedback Your answer is within an acceptable range of the correct answer and you have received full marks. Calculation The accumulated value can be calculated using the following formula: show variables P = amount invested
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FORMULA SHEET – for student reference only Perpetuity: The value of a perpetuity of $RM1 per year is: Equivalent Annual Cost: If an asset has a life of ‘t’ years‚ the equivalent annual cost is: Annuity: The value of an annuity of $RM1 per period for t years (t-year annuity factor) is: Measures of Risk: Variance of returns = σ2 = expected value of Standard deviation of returns‚ σ = Covariance between returns of stocks
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Chapter 025 Mergers and Acquisitions Multiple Choice Questions 1. The complete absorption of one company by another‚ wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity‚ is called a: A. merger. b. consolidation. c. tender offer. d. spinoff. e. divestiture. SECTION: 25.1 TOPIC: MERGER TYPE: DEFINITIONS 2. A merger in which an entirely new firm is created and both the acquired and acquiring firms cease to exist is called a: a
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Capital budgeting: The financial manager tries to identify investment opportunities that are worth more to the firm than they cost to acquire. 2. Capital structure: This refers to the specific mixture of long-term debt and equity a firm uses to finance its operations. 3. Working capital management: This refers to a firm’s short-term assets and short-term liabilities. Managing the firm’s working capital is a day-to-day activity that ensures the firm has sufficient resources to continue its operations
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3/26/2015 Difference between Finance Commission and Planning Commission of India Difference between Finance Commission and Planning Commission of India by Puja Mondal Difference Get cricket scores fast No need to scroll through results. Get instant answers from Google. Difference between Finance Commission and Planning Commission of India! There has been serious debate in the country regarding the role of the Finance Commission visavis the Planning Commission. Finance Commission is a Constitut
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PERSONAL FINANCES So on Junior Achievement site I found a survey about Teens and personal finances in 2013. They examined how teens view the importance of effective spending‚ saving and budgeting—and their opinions around how well they perform those tasks. This survey shows us that teen population nowadays is more optimistic than in the past years about its financial future‚ and yet still faces challenges related to successfully managing its money. In fact‚ even though optimism among teens is
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Investment w/o Risk: Inflowoutflow-1>r R=Δpp0+cfp0 PV:V0=Vt1+kt=Vt*PVIF(k;t) FV: Vt=V0*1+kt=V0*FVIF(k;t) keffective=kstatedm‚ k stated over year:APR Gross Interest Rate: 1+k Going from one EAR to other: 1+kx month eff.yx-1=[1+ky month eff.] Compounded to EAR … use this… also‚ less than a year to annual (special case): EAR=1+kstatedmm-1 EPR=1+APRmmt Continuous Compounding: Vt=etkc--- if the $ is received in one year then the formula is: V0=e-tkc‚ t-years and not periods and kc-discount
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