STRATEGIC FINANCIAL MANAGEMENT REVISION 1. Selling Currency Call Options. Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76‚ and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 50‚000 units in a Canadian dollar option. What was Mike’s net profit on the call option? ANSWER: Premium received per unit = $.01 Amount per unit
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“Ten for Ten.” That’s how the Wayne Economic Development Council is summarizing the successes of the past decade as Wooster and Wayne County is yet again among the Top 10 micropolitans in the nation in term of qualifying economic development projects. The area finished third in the nation with 14 projects‚ behind No. 1 Findlay with 26 projects and Cullman‚ Ala.‚ with 18. “We’re pleased we made another strong showing‚” said Rod Crider‚ president of Wayne Economic Development Council. “We had great
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Fayol was a key figure in the turn-of-the-century Classical School of management theory.He saw a manager’s job as: • planning • organizing • commanding • coordinating activities • controlling performance Notice that most of these activities are very task-oriented‚ rather than people-oriented.This is very like.Fayol laid down the following principles of organization (he called them principles of management):1. Specialization of labor . Specializing encourages continuous improvement inskills
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Principles and Practice of Management Subject Code: B-101 Section – A : Part ONE Q1 A Plane is a trap laid to capture the __________________ Q2 It is the function of employing suitable person for a enterprise :________________ Q3 ____________________ means “group of activity & employee into departments”: Q4 This theory states that authority is the power that is accepted by others : _________________ Q5 It means dispersal of decision-making power to the lower level of the organization : _________________
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Financial Management Final Exam 3/2/2013 Q1. Calculating NOPAT: NOPAT = Operating Income (EBIT) x (1 – Tax) Operating Income (EBIT) = 700 Tax = 0.35 NOPAT = 700 x (1 – 0.35) = $455.00 Q2. Income Statement: Income Statement (EUR) Sales 15‚000 Operating cost 7‚500 Depreciation 1‚200 Amortization 0 Bonds 6‚500 Bonds interest 6.25% Tax rate (income) 35% EBIT = Sales – Operating cost – Depreciation – Amortization EBIT = 15‚000 – 7‚500 – 1‚200 – 0 EBIT = EUR 6
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Chapter 10 The Cost of Capital Learning Objectives After reading this chapter‚ students should be able to: Explain what is meant by a firm’s weighted average cost of capital. Define and calculate the component costs of debt and preferred stock. Explain why the cost of debt is tax adjusted and the cost of preferred is not. Explain why retained earnings are not free and use three approaches to estimate the component cost of retained earnings. Briefly explain the two alternative approaches
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Application of Category Management Principles Retail Buying and Category Management Submitted to: Submitted by: Mr. Sanjay Kumar Chitrangad Bareja Asst. Professor MFM Semester 2 NIFT Jodhpur (2012-14) National Institute of Fashion Technology Ministry of Textiles Jodhpur
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Running head: FOUR FUNCTIONS OF MANAGEMENT 2in business Four Functions of Management 216 in business MGT/330 August 24‚ 2010 Instructors name Four Functions of Management Every organization‚ regardless of size‚ has developed and implemented its own management concepts in order for it to run smoothly and accomplish the vision‚ goal‚ and objective‚ the company has set forth. The basic functions of management can be broken down into four different areas‚ allowing the organization to handle
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Chapter 2 Opportunity cost of capital – rate of return expected to be received from alternate investments forgone. NPV – Present value of cash flows less the cost of acquiring the asset acquire assets with positive NPV‚ positive NPV = good project Rate of Return = profit/cost or investment (good investments have higher rate of return than opportunity cost) Higher discount rate ( lower discount factor (lower NPV Investment Decision Rules: 1. accept if positive NPV 2. accept
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Answers to Text Discussion Questions 7-1. Cash and marketable securities are generally used to meet the transaction needs of the firm and for contingency purposes. Because the funds must be available when needed‚ the primary concern should be with safety and liquidity rather than the maximum profits. 7-2. Liquidity is the quality of converting an asset to cash quickly and at fair market value. 7-3. The treasury manager is most concerned with daily cash flows of a corporation as it is the
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