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UCLA - MATH - 33B
Mathematics 33B: Calendar of Class Meetings Week 1. Section 2.1, 2.2, 2.4, 2.5.Monday 1/5. Lecture 1: 2.1 examples, direction elds. 2.2 separable equations. Syllabus handed out. Homework 1 assigned. Wednesday 1/7. Lecture 2: 2.4 linear equations. Fr
UCLA - HIST - 1B
martin luther - posted 95 theses to the church of wittenberg. originally wanted to spark intellectual debate, it paved way for the beginning of the protestant reformation. martin luther stressed for reforms to the papacy and to remove the church alto
Waterloo - ACTSC - 371
Chapter 14:14.1 a. b.Corporate-Financing Decisions and Efficient Capital MarketsFirms should accept financing proposals with positive net present values (NPVs). Firms can create valuable financing opportunities in three ways: Fool investors. A f
Waterloo - ACTSC - 371
Chapter 15: Long-Term Financing: An Introduction15.1Assuming that the common shares have no par value: Before the issue Common shares 1,500,000@2$/sha re Retained earnings Total After the issue $3,000,000 Common shares $200,000,000 Retained earnings
Waterloo - ACTSC - 371
Chapter 16: Capital Structure: Basic Concepts16.1 a. Since Alpha Corporation is an all-equity firm, its value is equal to the market value of its outstanding shares. Alpha has 5,000 shares of common stock outstanding, worth $20 per share. Therefore,
Waterloo - ACTSC - 371
Chapter 17: Capital Structure: Limits to the Use of Debt17.1 a. The value of a firms equity is the discounted expected cash flow to the firms stockholders. If there is a boom, Good Time will generate cash flow of $250 million. Since Good Time owes i
Waterloo - ACTSC - 371
Chapter 18: Valuation and Capital Budgeting for the Levered Firm18.1 a. The maximum price that Hertz should be willing to pay for the fleet of cars with allequity funding is the price that makes the NPV of the transaction equal to zero. NPV = -Purch
Waterloo - ACTSC - 371
Chapter 19: Dividends and Other Payouts19.1 February 16: Declaration date - the board of directors declares a dividend payment that will be made on March 14. February 24: Ex-dividend date - the shares trade ex dividend on and after this date. Seller
Waterloo - ACTSC - 371
Chapter 20: Issuing Securities to the Public20.1 Rights offerings are cheaper than general cash offers. Even so, most new equity issues in the U.S. are underwritten general cash offers. In Canada, the bought deal is cheaper, probably due to the savi
Waterloo - ACTSC - 371
Chapter 22: Leasing22.1 a. b. Leasing can reduce uncertainty regarding the resale value of the asset that is leased. Leasing does not provide 100% financing although it may look as though it does. Since firms must try to maintain their optimal debt
Waterloo - ACTSC - 371
Chapter 23: Options and Corporate Finance: Basic Concepts23.1a. An option is a contract giving its owner the right to buy or sell an asset at a fixed price onor before a given date.b. Exercise is the act of buying or selling the underlying asse
Waterloo - ACTSC - 371
Chapter 24: Options and Corporate Finance: Extensions and Applications24.1 a. The inputs to the Black-Scholes model are the current price of the underlying asset (S), the strike price of the option (K), the time to expiration of the option in fracti
Waterloo - ACTSC - 371
Chapter 25: Warrants and Convertibles25.1 a. A warrant is a security that gives its holder the right, but not the obligation, to buy shares of common stock directly from a company at a fixed price for a given period of time. Each warrant specifies t
Waterloo - ACTSC - 371
Chapter 26: Derivatives and Hedging Risk26.1 a. A forward contract is an arrangement calling for the future delivery of an asset at an agreedupon price.b. A futures contract obliges traders to purchase or sell an asset at an agreed-upon price on a
Waterloo - ACTSC - 371
Chapter 30: Mergers and Acquisitions30.1 The salient point here is that both firms are shown at market value. Therefore, Lager is paying 390,000 for an asset valued at 260,000 (the total value of Moncton Pretzel shown on the balance sheet). This is
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 1414.1 List the three ways financing decisions can create value. 1. Fool investors 2. Reduce costs or increase subsidies 3. Create a new security 14.2 How do you define an efficient market? It is a market where current p
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 1515.1 What is a company's book value? It is the sum of the common shares, capital surplus and accumulated retained earnings. What rights do stockholders have? 1. Voting rights for board members 2. Proxy rights 3. Asset
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 1616.1 What is the pie model of capital structure? It is a model in which the value of the firm is pictured as a pie cut into debt and equity slices. 16.2 Why should financial managers choose the capital structure that
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 2020.2 What are the basic procedures in selling a new issue? 1. Obtain approval of the Board of Directors. 2. File a preliminary prospectus with the OSC. 3. Distribute prospectus to potential investors. 4. Determine offe
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 21 21.2 Do bearer bonds have any advantage? Why might Mr. "I Like to Keep My Affairs Private" prefer to hold bearer bonds? They have the advantage of secrecy. What advantages and what disadvantages do bondholders derive
Waterloo - ACTSC - 371
CONCEPT QUESTIONS CHAPTER 2222.1 What are the differences between an operating lease and a financial lease? 1. Operating leases have a cancellation option. 2. In an operating lease, the lessor maintains and insures the leased asset. With financial
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 2323.2 What is a call option? A call option is a contract that gives the owner the right to buy an asset at a fixed price within a certain time period. How is a call option's price related to the underlying stock price
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 2424.1 Why do companies issue options to executives if they cost the company more than they are worth to the executive? Why not just give cash and split the difference? Wouldnt that make both the company and executive be
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 2525.2 What is the key difference between a warrant and a traded call options? When a warrant is exercised, the number of shares increases. Also, the warrant is an option sold by the firm. When an options is exercised, i
Waterloo - ACTSC - 371
CONCEPT QUESTIONS CHAPTER 2626.1 What is a forward contract? An agreement to trade at a set price in the future. Give examples of forward contracts in your life. A forward contract is formed when you contract an artisan to construct a banjo and a
Waterloo - ACTSC - 371
CONCEPT QUESTIONS - CHAPTER 3030.1 What is a merger? How does a merger differ from other forms of acquisition? A merger is the absorption of one firm by another, where the acquiring firm retains its identity and the acquired firm ceases to exist. I
Waterloo - ACTSC - 371
Chapter 1: Introduction to Corporate Finance 1.1 From the set-of-contracts viewpoint, the goal of the corporate firm is to maximize the shareholders wealth in the firm. However, at times, corporations appear to pursue managerial goals at the expense
Waterloo - ACTSC - 371
Chapter 2: Accounting Statements and Cash Flow2.1 Assets Current assets Cash Accounts receivable Total current assets Long-tern assets Machinery Patents Total long-term assets Total assets Liabilities and equity Current liabilities Accounts payable
Waterloo - ACTSC - 371
Chapter 3: Financial Planning and Growth3.1 From the relationship, S = .00001 x GNP, we can get forecast sales: S = 0.00001; GNP = 0.00001 ($2,050 trillion) = $20,500,000Now, compute the other values: Projected Current Assets = Current Assets + Cu
Waterloo - ACTSC - 371
Chapter 4: Financial Markets and Net Present Value: First Principles of Finance4.1 $120,000 - ($150,000 - $100,000) (1.1) = $65,000 In order to consume $150,000 this year Jean will borrow $50,000 and pay $55,000 ($50,000 principal and $5,000 interes
Waterloo - ACTSC - 371
Chapter 5: The Time Value of Money 5.1 a. b. c. d. a. b. c. $1,000 1.0510 = $1,628.89 $1,000 1.0710 = $1,967.15 $1,000 1.0520 = $2,653.30 Interest compounds on the interest already earned. Therefore, the interest earned in part c, $2653.30, is mor
Waterloo - ACTSC - 371
Chapter 6: How to Value Bonds and Stocks 6.1 a. b. c. $1,000 / 1.0510 = $613.91 $1,000 / 1.1010 = $385.54 $1,000 / 1.1510 = $247.186.2The amount of the semi-annual interest payment is $40 (=$1,000 0.08 / 2). There are a total of 40 periods; i.e.
Waterloo - ACTSC - 371
Chapter 7: Some Alternative Investment Rules 7.1 a. The payback period is the time that it takes for the cumulative undiscounted cash inflows to equal the initial investment. Project A: Cumulative Undiscounted Cash Flows Year 1 Cumulative Undiscounte
Waterloo - ACTSC - 371
Chapter 8: Net Present Value and Capital Budgeting 8.1 a. Yes, the reduction in the sales of the companys other products, referred to as erosion, and should be treated as an incremental cash flow. These lost sales are included because they are a cost
Waterloo - ACTSC - 371
Chapter 9: Risk Analysis, Real Options, and Capital Budgeting9.1 Calculate the NPV of the expected payoff for the option of going directly to market. NPV(Go Directly) = CSuccess (Prob. of Success) + CFailure (Prob. of Failure) = $20,000,000 (0.50) +
Waterloo - ACTSC - 371
Chapter 10: Capital Market Theory: An Overview 10.1 a. b. c. d. you should 10.2 a. Capital gains = $38 - $37 = $1 per share; Total capital gains is $500 ( $1 x 500) Total dollar returns = Dividends + Capital Gains = $1,000 + ($1*500) = $1,500 On a pe
Waterloo - ACTSC - 371
Chapter 11: Return and Risk: The Capital-Asset-Pricing Model (CAPM)11.1 a. Expected Return = (0.1)(-0.045) + (.2)(0.046) + (0.5)(0.125) + (0.2)(0.207) = 0.1086 = 10.86% The expected return on Q-marts stock is 10.86%.b.Variance (2) = (0.1)(-0.045
Waterloo - ACTSC - 371
Chapter 12: An Alternative View of Risk and Return: The Arbitrage Pricing Theory12.1 Real GNP was higher than anticipated. Since returns are positively related to the level of GNP, returns should rise based on this factor.Inflation was less than t
Waterloo - ACTSC - 371
Chapter 13: Risk, Cost of Capital, and Capital Budgeting13.1 The discount rate for the project is equal to the expected return for the security, RS, since the project has the same risk as the firm as a whole. Apply the CAPM to express the firms requ
Waterloo - ACTSC - 371
Chapter 27: Short-Term Finance and Planning27.1 Start with the basic balance sheet equation, and substitute known definitions: Assets = Liabilities + EquityCurrent Assets + Fixed Assets = Current Liabilities + Long-Term Debt + Equity Since Net Wor
Waterloo - ACTSC - 371
Chapter 28: Cash Management28.1 a. b. Firms need to hold cash to: Satisfy the transaction needs. For example, cash is collected from sales and new financing and disbursed as wages, salaries, trade debts, taxes and dividends. Maintain compensating ba
Waterloo - ACTSC - 371
Chapter 29: Credit Management29.1 North County Publishing Company should adopt the new credit policy if its PV, PV (New), is greater than the PV of the current policy, PV (Old). Note that we can write the general formula as:PV(policy) =(avg sale
Marymount - PH - 220
Converstion Convertend A: All S is P E: No S is P I: Some S is P O: Some S is ~P Obversion Obvertend A: All S is P E: No S is P I: Some S is P O: Some S is ~P Contraposition Premise A: All S is P E: No S is P I: Some S is P O: Some S is ~PConverse
ASU - ENG - 480
Joshua Courtney Professor Early ENG 480 14 October 2008E-mail Etiquette Mini-LessonOverview: This mini-lesson is intended to teach the basics of simple e-mail etiquette. E-mailing is an integral part of our lives now and students should be capable
Hong Kong Polytechnic University - AF - 3152
CHAPTER 1UNDERSTANDING THE FINANCIAL PLANNING PROCESS 2008 Thomson South-WesternThe Rewards of Sound Financial PlanningMaintain and improve standard of living. Control spending in order to live well today and tomorrow! Accumulate wealth.1-2
Hong Kong Polytechnic University - AF - 3152
LECTURE 2 YOUR FINANCIAL STATEMENTS AND PLANSCC3152 Principles of Financial PlanningLearning Outcome1. Understand interlocking network of financial plans and statements 2. Prepare a personal balance sheet 3. Generate a personal income and expens
Hong Kong Polytechnic University - AF - 3152
LECTURE 3 ASSETS MANAGEMENTCC3152 Principles of Financial PlanningPart 1 Cash Management1-2Role of Cash Management in Personal Financial Planning Cash management deals with the routine, day-to-day use of liquid assets. Liquid assets consist
Hong Kong Polytechnic University - AF - 3152
LECTURE 5 LIFE INSURANCECC3152 Principles of Financial Planning(I) Basic Insurance ConceptsBasic purposes of insurance iProtect you and your dependents from losing the assets that youve acquired. iShield you and your family from an interruption
Hong Kong Polytechnic University - AF - 3152
LECTURE 6 HEALTH INSURANCECC3152 Principles of Financial PlanningImportance of Health Insurance[LG1] Protect against economic loss in the event of serious accidents or illnesses. Protect against the rising cost of health care, which is outpac
Hong Kong Polytechnic University - AF - 3152
LECTURE 7 PROPERTY & LIABILITY INSURANCECC3152 Principles of Financial Planning(I) Property Insurance Basics[LG1]1. Types of Exposure1. Property losseconomic loss because your property is damaged, destroyed, or stolen. Obligations of propert
Hong Kong Polytechnic University - AF - 3152
INVESTMENT PLANNINGCC3152 Principles of Financial Planning(I) The Objectives & Rewards Of Investing [LG1] Investingusually considered a longterm activity. Future values and returns expected to increase through time. Speculatingusually considere
Hong Kong Polytechnic University - AF - 3152
INVESTING IN STOCKS & BONDSCC3152 Principles of Financial Planning(I) The Risks Of Investing[LG1,2]1. Business 2. Financial 3. Market 4. Purchasing Power 5. Interest Rate 6. Liquidity 7. Event5-21. Business Risk degree of uncertainty assoc
Hong Kong Polytechnic University - AF - 3152
LECTURE 10 INVESTING IN MUTUAL FUNDS & REAL ESTATECC3152 Principles of Financial Planning(I) Mutual Fund Basics[LG1,2] INVESTORS pool their money and buy shares in the MUTUAL FUND. FUND MANAGER selects and purchases a variety of investment instr
Hong Kong Polytechnic University - AF - 3152
RETIREMENT PLANNINGCC3152 Principles of Financial Planning(I) Overview of Retirement Planning[LG1,2]Pitfalls in Retirement Planning Starting too late. Putting away too little. Investing too conservatively (especially when you are younger).2
Hong Kong Polytechnic University - AF - 3152
ESTATE PLANNINGCC3152 Principles of Financial Planning(I) Estate Planning[LG1]Developing plans and taking actions during your lifetime to accumulate, preserve, and distribute your wealth on your death according to your wishes, while minimizin
Hong Kong Polytechnic University - AF - 3152
Hong Kong Community College CC3152 Principles of Financial Planning Tentative Teaching Plan Semester One 2008/2009Subject Leader Dr Benjamin Wong Subject Lecturers Ms Peggy Yau (Office: 1224b, Tel: 3746 0887, email: ccpeggy@hkcc-polyu.edu.hk) Consu
Hong Kong Polytechnic University - AF - 3152
Chapter 13 Review QuestionsTrue/False 1. The most important advantage of a mutual fund is pooled diversification. 2. The net asset value (NAV) per share is found by dividing the market value of the funds securities less the funds liabilities by the
Hong Kong Polytechnic University - AF - 3152
Decision Making for Consumers Chapters 6 10 ReviewReview The Secret History of the Credit Card video/worksheet 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Which types of transactions should you not (routinely, at least), use
Hong Kong Polytechnic University - AF - 3152
Chapters 11-15 Review 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. What is the main objective of an index fund? During a bull market, what typically happens to stock prices? What is th
Hong Kong Polytechnic University - AF - 3152
Chapter 11 Review Questions True/False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Two prerequisites to investing are adequate insurance and liquidity. Newly issued securities are sold to the public in the secondary market. An individual is more likely to use the