A. Compound Interest Formula:FV = P (1 + r) nFuture Value = FV‚ P = Principal‚ r = interest rate and n = number of years. = $500(1 + 0.06) 10a) An initial $500 compounded for 10 years at 6 percent. A = $ 895b) An initial $500 compounded for 10 years at 12 percent. 500(1 + 0.12) 10B = $1553Present Value Calculation:PV = present Value‚ Principal = $ 500‚ r = interest rate and n = number of yearsFormula:PV = FV/(1 + r) nThe present value of $500 due in 10 years at a 6 percent discount rate.
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Properties of Trigonometric Functions The properties of the 6 trigonometric functions: sin (x)‚ cos (x)‚ tan(x)‚ cot (x)‚ sec (x) and csc (x)are discussed. These include the graph‚ domain‚ range‚ asymptotes (if any)‚ symmetry‚ x and y intercepts and maximum and minimum points. Sine Function: f(x) = sin (x) * Graph * Domain: all real numbers * Range: [-1 ‚ 1] * Period = 2pi * x-intercepts: x = k pi ‚ where k is an integer. * y-intercepts: y = 0 * Maximum points: (pi/2
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Sampa Video‚ Inc You have to prepare a presentation to the management of the firm. The presentation should have; analysis of the project‚ your valuation of the investment and your investment recommendation. You have to be clear and brief and explain the main assumptions and methodologies used in the analysis. The quality of the presentation will be considered in the grading. You have to hand in a handout of the presentation and an executive summary of no more than 2 pages. Guideline Questions
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Text Problem Sets A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Number of years (N) = 10‚ future value (FV) = 1000‚ interest rate (I/YR) = 9 0.074 * 1000 = 74 = PMT or annual payment‚ I then pressed CPT on my financial calculator to compute the price of the bond and then pressed PV or present value. The fair value of the bond is $897.32. Using Cash Flow of
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Question The dividend discount model tells us that the value of a firm is equal to the present value of its expected dividend payments. Some firms have never paid dividends and have no intention of doing so. Does this mean that these firms are worth nothing? Discuss with reference to academic research and theory. Answer 719 words Two schools about dividend policy: relevant dividend theory and irrelevant dividend theory The dividend discount model tells us the value of a firm is
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Pythagorean Theorem: Some False Proofs Even smart people make mistakes. Some mistakes are getting published and thus live for posterity to learn from. I ’ll list below some fallacious proofs of the Pythagorean theorem that I came across. Some times the errors are subtle and involve circular reasoning or fact misinterpretation. On occasion‚ a glaring error is committed in logic and leaves one wondering how it could have avoided being noticed by the authors and editors. Proof 1 One such error appears
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1. How does Ben’s age affect his decision to get an MBA? This document is the property of Management Development Institute‚ Gurgaon. Ben passed out from college six years ago with a finance undergraduate degree. He is 28 years of age and his goal I to become an investment banker. Ben’s age can affect his decision to get an MBA due to the following reasons: o His age determines the time period wherein he can be productively employed. The time window available to Ben keeps on reducing with age
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Madeline Totten Dr. Su Phy 110 Lab 18 September 2013 Lab 2: Introduction to DataStudio Purpose: The purpose of this lab is to practice designing an experiment by choosing the variables‚ using DataStudio to collect the data from the experiment‚ and then taking our data and presenting it and our results in a report. Method: For this experiment‚ the goal was to use a simple pendulum (shown to the left) to measure the period of the motion. For task 1‚ we just became familiar with DataStudio
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The company occupies about 12% of the market share in a fragmented but stable and highly predictable funeral services industry‚ in which the company growth primarily depends on the demographic situation. There are two growth opportunities within the industry: companies can either expand through acquisitions and takeovers of small firms‚ as the fragmented industry provides good conditions for that‚ or it has an alternative to increase revenues by rising prices. Such an option seems to be quite realistic
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There are several factors to consider when deciding whether to rent or buy a home. In our case study‚ Beth and Jon Linton are considering the critical decision of buying or renting at Stedman Place in Newton‚ which is a western suburb of Boston‚ Massachusetts. The timing of this decision is important‚ as the decision is being made in July of 2006‚ before the housing market downturn. The case gives insight into the couple’s decision-making process‚ and the pros and cons of buying versus renting are
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