Econ 136: Financial Economics Problem Set #1 Due Date: September 11‚ 2014 1. The return profile and risk of the S&P 500. In this exercise you will reproduce the graphs presented in class. The goal of this exercise is (i) to expand your datahandling skills‚ (ii) test your understanding of basic probability concepts using real data and (iii) develop an appreciation for the use of replicating a result to ensure that you understand it. Go to Yahoo Finance (finance.yahoo.com) and search for the ticker
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Financial Accounting Final Study Guide Liabilities – Probable debts or obligations that result from past transactions Current Liabilities – Are due within one year of the balance sheet date Liquidity – The ability to pay current obligations Working capital – Current assets minus current liabilities Accrued Liabilities – Expenses that have been incurred but have not been paid at the end of the accounting period Deferred Revenues – Revenues that have been collected but not yet earned‚ they are
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APPENDIX A (INTERVIEW) This interview was conducted on the 18th of December 2013 at Rainforest AdVenture Experience Park in Pasig City. The interviewee was Mr. Julius Meroy‚ Head of RAVE. U: Good Day Sir! We would like to know if RAVE Park could be the topic of our study/thesis. R: Yes we allow it‚ in fact it is not the first time that there are students who ask us the same question most of those students are from schools here in manila. U: R: The former name was Rainforest then change it on Rainforest
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that. In the afternoon‚ we had case presentation. Both groups that are Musadun and Nurul Huda‚ and Teong and Fatimah were presented about stroke patient. During the presentation‚ one of the group mention with the Mirro Box Therapy. It’s a new thing for me. So I had done some research on it. Mirror Box Therapy is part of a program called ’Graded Motor Imagery’ which offers improvements in pain and disability by retraining the brain and re-mapping neural pathways‚ for patients who suffer from Chronic
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STATE HOW BOTH COMPANIES SHOULD CLASSIFY THE LEASE. GIVE REASONS FOR YOUR ANSWER. Both Purple Ltd and Lemon Ltd should classify the lease as a finance lease based on the below. Present value of all future lease payments = ($8‚000 – $1‚000) X 3.8897 = $27‚228 Present value of guaranteed residual value = 50% X 7‚200 X 0.6499 Total present value = $27‚228 + $2‚340 of the Bulldozer The present value of the minimum lease payments is substantially all of the fair value of the leased
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Cost Accounting: Information for Decision Making Solutions to Review Questions 1-1. Financial accounting is designed to provide information about the firm to external users. External users include investors‚ creditors‚ government authorities‚ regulators‚ customers‚ competitors‚ suppliers‚ labor unions‚ and so on. Cost accounting systems are designed to provide information to internal users (managers). This difference is important‚ because it affects the design of the systems. Financial accounting
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differences between management accounting and financial accounting include:[1] 1. Management accounting provides information to people within an organization while financial accounting is mainly for those outside it‚ such as shareholders 2. Financial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as in the I.A.S International Accounting Standard within Europe. 3. Financial accounting covers the entire organization
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119‚162.42 c. 119‚172.42 d. 119‚182.42 e. None of the above Solution: The answer is A. FV=-138‚000; I/Y=2.45; N=72; C/Y=P/Y=12; CPT PV 2. First Bank of Midesto Medeque pays a 9.45% nominal rate of interest compounded weekly. What is the effective rate of interest? a. 9.60% b. 9.70% c. 9.80% d. 9.90% e. None of the above Solution: The answer is D. ICONV: NOM=9.45; C/Y=52; CPT EFF3. QKL Co. plans a new project that will generate $ 265‚000 of cash flow at the end of each year for 7 years
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2012 2011 2010 2009 2008 200 Net Sales $ 83‚680 $81‚104 $77‚567 $ 75‚295 $ 77‚714 $ 71‚095 Gross Profit 41‚289 41‚245 40‚525 37‚644 39‚534 36‚607 Operating Income 13‚292 15‚495 15‚732 15‚188 15‚743 14‚236 Net Earnings from Continuing Operations 9‚317 11‚698 10‚851 10‚645 11‚224 9‚562 Net Earnings from Discontinued Operations 1‚587 229 1‚ 995 2 ‚877 9 30 847 Net Earnings attributable to Procter & Gamble 10‚756 11‚797 12‚736 13‚436 12‚075 10‚340 Operations 11.1% 14.4% 14.0% 14.1%
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Solutions to Exercises and Problems Tutorial 1 IFM Case 2-2 Case 2-2 SKD Limited 1. Goodwill a. There is no goodwill amortization expense in Country A‚ so the goodwill amortization expense recognized by SKD must be added back to determine income under Country A GAAP. SKD amortizes goodwill over a longer period (20 years) than is allowed in Country B (5 years)‚ so an additional amount of goodwill amortization expense must be recognized to determine income under Country B GAAP‚ which reduces
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