All CFA Institute members and candidates are required to comply with the Code and Standards The CFA Institute Bylaws Basic structure for enforcing the Code and Standards primary principles Based on two Rules of Procedure Fair process to member and candidate Confidentiality of proceedings Maintains oversight and responsibility The CFA Institute Board of Governors Structure of the CFA Institute Professional Conduct Program Professional Conduct program (PCP) The CFA Designated Officer Through
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................1.3 Demerits of Payback Period........................................................................................................1.4 Merits of Net Present Value .......................................................................................................1.5 Demerits of Net Present Value...................................................................................................1.6 Merits of Internal Rate of Return..........................................
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strategy would be in the best interest of Glaxo Italia in terms of net present value‚ rather than the IRR or payback period used previously. We have decided that co-marketing with another company would be the best option for Glaxo Italia as it has the higher net present value. Forecasting and Analysis We have decided to extend the forecasts to 2010 because although it is difficult to predict beyond 6 years‚ the typical life cycle of a drug lasts between 10 to 20 years. Looking at the forecasts made
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order-processing department to be $180‚000. The company produces 50‚000 sweaters and 80‚000 jackets each year. Sweater production requires 25‚000 machine hours‚ jacket production requires 50‚000 machine hours. The company places raw materials orders 10 times per month‚ 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets? a. $90‚000 b. $120‚000 c. $110‚770 d. $144‚000 8. ABC Bread sells a
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Present Values Answers to Problem Sets 1. If the discount factor is .507‚ then .507 x 1.126 = $1. Est time: 01-05 2. DF x 139 = 125. Therefore‚ DF =125/139 = .899. Est time: 01-05 3. PV = 374/(1.09)9 = 172.20. Est time: 01-05 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003. Est time: 01-05 5. FV = 100 x 1.158 = $305.90. Est time: 01-05 6. NPV = −1‚548 + 138/.09 = −14.67 (cost today plus the present value of the perpetuity). Est time: 01-05
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FIN 502 – Personal Financial Planning Chapter 1 – Module 2 Time value of money * How to compare monetary amounts you pay or receive at different times * The arithmetic with which we convert money between periods‚ or calculate what rate of return is implied by a given set of cash flows Single Period – Rate of Return * N = amount of years * I% = x (what we’re trying to find) * PV = How much it’s worth today * FV = How much it’s worth at maturity date
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supporting calculations where appropriate. If you provide alternative answers to Questions 3‚ 4‚ 5‚ or 6‚ only the first answer will be marked. If you wish to change your answer‚ you must cross out the answer you do not wish to submit for marking. Time: 4 Hours 2. 3. 12 Question 1 Note: 2 marks each a. Which of the following is least likely to increase market efficiency? 1) Governments relax restrictions on foreign investment. 2) Corporations disseminate more information to investors
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TERMPAPER ON APPLICATION OF BUSINESS MATH IN BUSINESS [pic] U N I V E R S I T Y O F D H A K A Submitted to: Md. Ariful Islam Lecturer Dept. of Banking and Insurance Dhaka University Submitted by: Md. Mahfuzur Rahaman Biswas ID No. 51221068 Batch-21st Department of Banking Faculty of Business Studies Letter of Transmittal 12th December 2012 To Md. Ariful Islam Lecturer Department of Banking & Insurance
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1. Consider a 1-Year $10‚000 CD A. The future value of a $10‚000 CD that has a maturity of 1 year at maturity with 10% interest is $11‚000. Financial Calculator Inputs: $ -10‚000=PV‚ 1=N‚ I=10‚ FV=? ($11‚000) B. The future value of a 1-year‚ $10‚000 CD after one year at an interest rate of 5.0% is $10‚500. Financial Calculator Inputs: $-10‚000=PV‚ 1=N‚ 5=I‚ FV=? ($10‚500) The future value of a 1-year‚ $10‚000 CD after one year at an interest rate of 15.0% is $11‚500. Financial
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Techniques of Project Appraisal ARNOLD C. HARBERGER UNIVERSITY OF CHICAGO In this paper‚ I attempt to bring into focus what I believe to be some of the important practical issues that face development planners in the field of project appraisal. I shall try‚ insofar as possible‚ to recognize the handicaps under which planners operate‚ most importantly the handicaps imposed by imperfect foresight and by the virtual necessity of decentralized decision-making. To elaborate briefly on these
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