Response Feedback: PI = PV of all Future CFs/|initial outlay| Question 4 0 out of 1 points If you receive $1‚939 at the end of each year for the first three years and $2‚224 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 4%. Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example‚ if your answer is $12.345 then enter as 12.35 in the answer box.
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these decisions that people at one point thought of as a level of education only few are able to attain. In time that perspective has changed and in recent calculations the number of MBA graduates has increased by 250% (Articlesbase‚ 2006). In the closing case‚ we address the questions below to help Ben with his MBA decision. Question 1 How does Ben’s age affect his decision to get an MBA? Time plays a huge factor in Ben’s decision to get his MBA and to be able to make $100‚000 a year along with the
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FORMULAS TIME VALUE OF MONEY PV (simple without compounding) = FV/1+r FV (simple without compounding) = PV (1+r) PV (compounding) = FV / (1+r)n FV (compounding) = PV (1+r)n PV (for monthly‚ daily or bi-annually basis) = FV / (1+r/m)n*m FV (for monthly‚ daily or bi-annually basis) = PV(1+r/m)n*m To find interest rate: FV = PV (1+r(?))n (FV and PV are given) APR (Annual Present Rate) = r * Total days in a year/given days In Excel: =RATE(n‚pmt‚PV) EAR (Effective Annual Rate)
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Introduction Davis‚ Michaels‚ and Company is a financial consulting firm in San Francisco run by Tom Davis and Gene Michaels. Tom and Gene worked together at Steel‚ Robbins‚ Hernandez‚ and Associates after graduating college. When Tom saved up enough money he left Steel and asked Gene to be his partner to open Davis‚ Michaels‚ and Company. The firm provides consulting services for income tax planning‚ insurance planning‚ investment planning‚ and estate planning for small‚ family owned businesses. Their
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Capitalisation without growth Earnings Capitalisation with growth Price-Earning Multiple Model 3. Free Cash Flow Models Discounted Free Cash Flow to Equity (FCFE) model Discounted Free Cash Flow to the Firm (FCFF) model 4. Book Valuation (Net Asset Value) Model Discounted Dividend Model The dividend discount model (DDM) is a method of valuing a company based on the theory that a stock is worth the
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Q1 Definition of ’Accounting Information System - AIS’ The collection‚ storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors‚ creditors and tax authorities. Investopedia
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shelter provided by things other than debt‚ such as __________. 10) Preferred stock payment obligations are typically 11) If the yield to maturity for a bond is less than the bond’s coupon rate‚ then the market value of the bond is __________. 12) Assume that the par value of a bond is $1‚000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true? 13) Certain countries have restrictions. In practice‚ U.S. investors have NOT
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Compounding F J Answer: a EASY 3. A time line is meaningful even if all cash flows do not occur annually. a. True b. False (28.2) Compounding F J Answer: b EASY 4. A time line is not meaningful unless all cash flows occur annually. a. True b. False (28.2) Compounding F J Answer: a EASY 5. Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. a. True b. False (28.2) Compounding F J Answer: b EASY 6. Time lines cannot be constructed in
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FIN 401-061 RYERSON UNIVERSITY Midterm Exam – March 4‚ 2013 – Prof. M. Toffanin Version A Time allowed: 2 hours Aids allowed: Closed book except for an 8 1/2” by 11” crib sheet. Answer all multiple choice questions on the scan sheet. All questions are worth 1 mark each. There are 30 multiple choice questions. Good luck! 1. Which version of the exam do you have? This is a free mark – take it. Make sure you answer it correctly‚ though. A) Version A B) Version B Please use the following
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and other benefits. - Economic return: Net returns to farmers per Hectare from growing Sugar cane are high. From Exhibit 9 with nominal cash flow of a crop life cycle ( 4 years)‚ the total return of one hectare is 6‚900 (000’VND) and net present value is 3‚841 (000’VND) with nominal discount rate 13.3%/year. Compare to coffee and rubber‚ sugar cane need only one year to revenue. Compare with other crops (pineapple‚ coffee‚ rubber …)‚ Sugar cane can get highest average economics per year from exhibit
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