of the S&P 500 Index. Which stock appears to be riskiest? Reynolds appears to be the riskiest stock based on the returns and variability alone currently holding the highest average return out of two at 1.87%. With their higher return rate over the three they also hold the highest standard deviation of 9.1%‚ which in turn infers that they may hold the highest beta out of the three. 2. Portfolio Risk Suppose Sharpe’s position had been 99 percent of equity funds invested in the S&P 500
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Wednesday 11:45-12:45 4-5PM wxw107020@utdallas.edu Final EXAM December 19 (1-3:45) JSOM2.106 Fin. ST. Analysis Protect Industry name Company name1 ----- student1 2 2 3 3 4 4 Class1-5 content: Introduction to Accounting Business activities and financial statements Balance sheet valuation rules Income statement valuation rules Transaction analysis --- prepare fin statement Mallard Clothing --- Prepare fin statement
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cash flows it’s the difference between cash received and cash paid out. Cash should be recorded only when they occur and not when work is undertaken or a liability is incurred. Ex: taxes should be discounted from their actual payment date. 2. Estimate cash flows on an incremental basis. The value of a project depends on all the additional cash flows that follow from project acceptance. Some things to watch for when you are deciding which cash flows to include: a. Do not confuse average with incremental
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The Investment Detective Case We can use normal investment to calculate the data‚ but we also can do it as reinvestment to invest every project for the same years. For every question‚ I will give answers for both normal investment and reinvestment. 1. We can rank the projects simply by the cash flow data. Normal investment: Rank 1 2 3 4 5 6 7 8 Project number 3 8 6 1 5 7 4 2 Cash flow 8000 2150 200 1310 2200 560 1561 165 Reinvestment: Rank 1 2 3 4 5 6 7 8
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Term Sheet BUS605: Venture Capital and Private Equity Term Sheet “A term sheet is a non-binding agreement setting forth the basic terms and condition under which an investment will be made. The term sheet serves as a template to develop more detailed legal documents. Once the parties involved reach an agreement on the details laid out in the term sheet‚ a binding agreement or contract that conforms to the term sheet details is then drawn up” (Investopedia‚ 2013)
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what extent do you think the training has achieved a Return on Investment? The training program of Tesco was created to develop their workforce. It gives the opportunity to survey and evaluate their process according to their performance. This method brings the occasion to see if the employees make progress. They can also measure their work and improve it‚ in case of fail‚ concerning the objective that they have and want to achieve. Training is beneficial for both‚ the company and employees
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ratio of 3 : 2. Govind is admitted for ¼th share of firm. Thereafter Madan enters for 20 paisa in a rupee. Compute new profit sharing ratios under both the admission of partners. (iii) The following Goodwill Account was opened by the partners of R and S‚ on the admission of H as a new partner into firm Om and Sons. Calculate the share of profit agreed to be
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1. A NSF check should appear in which section of the bank reconciliation? (Points : 2) Addition to the balance per books. Deduction from the balance per bank. Addition to the balance per bank. Deduction from the balance per books. | 2. A consequence of separation of duties is that (Points : 2) theft by employees becomes impossible. operations become extremely inefficient because of constant training of employees. more employees will need
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Case Study: The Investment Detective Primary consideration is the capital availability. If the firm has unlimited access to capital and no other investment options‚ Net Present Value would become recommended quantitative method. On the other hand‚ if the time horizon and payback period matter‚ the company should use Internal Rate of Return Calculation. 1. Looking at the cash flows doesn’t really say much. The assumption is that the firm is in the business to make profit. Profit is equal return
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concept. b. monetary unit assumption. c. economic entity assumption. d. corporate form of ownership 2. All of the financial statements are for a period of time except the a. income statement. b. balance sheet c. owner’s equity statement. d. statement of cash flows 3. A trial balance will not balance if a. a journal entry is posted twice. b. a wrong amount is used in journalizing. c. incorrect account titles are used in journalizing. d. a journal entry is only partially posted. 4. In a service-type
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