17/07/2013 Finance Semester 2‚ 2013 Seminar 1 Introduction to finance & ethics in finance Ross et al. chapter 1. These powerpoint slides have been adapted from Frank Finn Professor of Finance Tom Smith’s (UQ) teaching material of “Three key finance ideas of valuation” and Dr. Scott McCarthy’s teaching material. 1 What is Finance? • Every business is a process of acquiring and disposing assets: real assets and financial assets. • Finance is a science of valuation and management
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Efficient Propeller Design | AbstractHow does a helicopter generate enough lift to fly? How does a speedboat get moving fast enough to pull someone on water skis? Here ’s a project on designing propellers to do the job. ObjectiveThe goal of this project is to investigate how changes in chord length affect the efficiency of propellers.IntroductionA propeller‚ like an airplane wing‚ is an airfoil: a curved surface that can generate lift when air moves over it. When air moves over the surface of
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|Financial Management | | | |Functions of Finance Executive‚ Finance Treasurer & Finance Controller | | | |3/16/2012
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Efficient Cash Management Upon preparation of cash budgets after forecasting the receipts and payments‚ the management will have knowledge about the cash position of the firm. After knowing the cash position‚ the management should work out the basic strategies to be employed to manage its cash. The strategies of cash management are essentially related to the cash turnover process‚ that is‚ the cash cycle together with the cash turnover. The cash cycle is the amount of time cash is tied up between
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such as red cod‚ spotty and kahawai challenge them. There are predators such as dolphins‚ sharks and also people. Their gas exchange system has to be efficient for them to be able to compete with those fish and escape from predators. Fish live in an acquatic environment. Water contains a less % 02 than the air so fish mush have a very efficient gas exchange system. This has prompted the development of the gill system. Air has 20% 02‚ water has much less. The gills are supported by the gill arch
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South East University Assignment Managerial finance (5133) Semester: Spring 2013 Problem-1 Warf Computers‚ Inc.‚ was founded 15 years ago by Nick Warf‚ a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years‚ this same group has supplied the limited additional investment needed by the company in the form of both equity and short-and long-term debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated
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Creating efficient frontiers using excel. Suppose we have 3 risky assets whose net return has the mean vector and variancecovariance matrix given below: Asset Mean VarianceCovariance Matrix 1 2 3 0.06 0.12 0.03 1 0.3 0.3 0.3 1 0.3 0.3 0.3 1 Weights Ones Mean Portfolio Return 1 1 1 0.176666122 Portfolio Portfolio Portfolio Variance STD Constraint 2.42961 1.558721 1 0.079372 1.603166 -0.68254 To model the portfolio choice problem‚ I begin by highlighting the mean vector and giving
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shows the chance that the event will occur‚ so the chart shows the possible returns that could occur from holding the two stocks. One has a very wide distribution of probabilities – therefore more volatile results so higher risk. The other stock has a much narrower range of possible returns therefore is lower risk. Standard deviation Historical variance is the sum of the squared deviations from a mean divided by the number of observations minus one. SD is the positive square root of that variance
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Project vs Firm Risk and the Impact of Leverage The SML and WACC § Consider 100% equity financed firm § Beta = 1 E/V = 1! D/V = 0! § WACC =? E D WACC = × RE + × RD × (1 − TC ) = RE V V WACC = Cost of equity from CAPM [ ] WACC = RE = R f + β × E [RM ] − R f = E [RM ] Beta =1! 2 SML and WACC SML Expected Return WACC = E[RM] Rf [ R f + β × E [RM ] − R f ] β=1 Beta 3 Accept Projects Y and/or Z? Expected Return IRRz WACC = E[RM]
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Final Finance Exam Notes Definitions: 1. Capital Budgeting is the process of evaluating proposed large‚ long-term investment projects. Capital budgeting is primarily concerned with evaluating investment alternatives. The first step in the capital budgeting process is idea development. A characteristic of capital budgeting is the internal rate of return must be greater than the cost of capital. One of the simplest capital budgeting decision method is the payback method. Capital budgeting
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