COMM 370 – Elena Simintzi Practice for Lecture 1: Basic Financial Analysis Question 1. Consider the following financial statements for SubMart Corp contained in the company’s most recent annual report filed with the OSC. SubMart Corp Balance Sheet‚ December 31‚ 2012 Assets Cash Accounts receivable Inventories Property‚ plant & equipment Less accumulated depreciation Total assets Liabilities & Equity Accounts payable Accrued expenses payable Long-term debt Common stock Retained earnings Total
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1 million times .05 is 50‚000. 2. A venture capital fund has the mandate to invest in new businesses that may be perceived as being too risky by other investors. Suppose that a fund invests its funds in units with no more than one unit per firm in order to diversify its investments. Furthermore‚ suppose there are two classes of firms with the following distributions of net returns‚ and assume that all firms operate independently of each other. Type A firms Type B firms
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deviation of 28%. The T-bill rate is 8%. 1. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the expected value and standard deviation of the rate of return on his portfolio? 2. Suppose that your risky portfolio includes the following investments in the given proportions: Stock A: 25% Stock B: 32% Stock C: 43% What are the investment proportions of your client’s overall portfolio
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First off‚ is relevance of similarities. For this illustration‚ suppose a man named Graham is considering purchasing his first home. He concludes that he wants to purchase a victorian style home because he wants a spacious home and his friend Frank’s victorian home is spacious. To back his decision‚ Graham argues that
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Homework Assignments Problems & Applications Chapter 1 Homework 4. You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5% interest. What is the opportunity cost of spending the $100 now? 5. The company that you manage has invested $5 million in developing a new product‚ but the product is not quite finished. At a recent meeting‚ your salespeople report that the introduction of competing products
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Chapter 1 1. What is the most important difference between a corporation and all other organizational forms? A corporation is legally separate from its owners; it is an artificial being under the law. 2. What does the phrase limited liability mean in a corporate context? Limited liability refers to the amount of liability an owner has. The owner is only liable for the amount they invested in the corporation. 3. Which organizational forms give their owners limited liability? LLC
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1. Suppose that you plan to buy a $810‚ 000 house. You have saved enough money to make a down payment of 10% and will finance the balance using a 30-year fixed rate loan from your old college roommate who is now a mortgage banker. The current mortgage rate on such loans is 5 ½ % (APR). (a) Compute the monthly payment using the PMT function in Excel and then prepare an amortization table. Fully amortize the loan by going out to the last payment. (b) Calculate both total $ payments for the
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“I think Canada was just really ready for it‚” says Aviva Groll‚ group account director at Ogilvy‚ who has worked on Dove since 2004. “There was a lot of support internally at Unilever‚ it struck a chord… [It was] a time of great experimentation and great leadership that allowed that to happen.” Groll also notes that having the budget available and co-operation amongst the product categories to allow for a campaign centred on the brand as a whole meant everything fell into place for a Canada-first
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BUS 325 Operations Management CPM & PERT Sample Problems #1 Suppose that a project requires the following activities and their respective activity times: 1. Complete the chart below (Round numbers to the second decimal place). Job No. Immediate Predecessors Times (weeks) Expected Time σ2 To Tm Tp A - 2 2 2 B A 1 2 3 C A 2 4 6 D B‚ C 1 3 5 E D 2 3 4 F C‚ D 1 2 3 G E‚ F 2 4 6 H C‚ F 1 1 1 I F‚ G‚ H 2 2 8 2. Construct the network diagram / Determine ES/EF &LS/LF.
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Bay Area has a history of producing innovations at a much faster rate than other cities in the U.S. Is the Bay Area’s population therefore likely "too small"‚ "too big"‚ or "just right"‚ relative to its utility-maximizing size? Why? (4 pts) 2. Suppose a factory can produce a shirt for the equivalent cost of 3 loaves of bread‚ and a household can produce a shirt for the equivalent cost of 10 loaves of bread. The factory is located in a rural area with a uniform population density. It costs the
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