"Profits are an opinion, cash is a fact."
-unknown
(Source: Citizens Bank Fundamentals of Credit Training - Cash Flow Analysis)
Provided by A. J. Giacobbe
Free Cash Flow Derived in 4 Steps
1. Derive u
"We are all failures - at least, all the best of us
are." J.M. Barrie (author of Peter Pan)
"Failure is the condiment that gives
success its flavor." Truman Capote(author of In Cold
Blood)
"The world
The Phoenix Effect: Overview
1. Investigate
2-4
Strategic
5-6
Financial
7 - 10
Operating
Rising from the ashes
Strategic Aspects of the Phoenix Effect
Strategic
2.
Scope
What & Where
3.
Orientation
4.
Discussion Problems Chapter 8
1. (8.13) Explain why an American option is always worth at least as much as: (a) a
European option on the same asset with the same strike price and exercise date,
and (b
Discussion Problems Chapter 12
1. Show that the Black-Scholes formulas for call and put options satisfy put-call
parity.
c = S0 N(d1) Ke-rT N(d2)
and
p = Ke-rT N(d2) S0 N(d1)
c + Ke-rT = S0 N(d1) Ke-r
Discussion Problems Chapter 5 Part B
1. A stock is expected to pay a dividend of $1 per share in two months and in five
months. The stock price is $50, and the risk-free rate of interest is 8% per ann
Problem Set 4
FINA 6211
Make sure that
it
is
clear
what
letter
(or
letters)
you
are
selecting.
1. Which of the following are always positively related to the price of a European
call option on a stock
Discussion Problems Chapter 10
1. An investor believes that there will be a big jump in a stock price, but is uncertain
as to the direction. Identify six different strategies the investor can follow a
Discussion Problems Chapter 9
1. A European call option and put option on a stock both have a strike price of $20
and an expiration date in three months. Both sell for $3. The risk-free interest rate
Discussion Problems Chapter 5 Part A
1. An interest rate is quoted as 5% per annum with semiannual compounding. What
is the equivalent rate with (a) continuous compounding (b) annual compounding,
and
Discussion Problems Chapter 10 part A
1. You purchase 100 shares of common stock of XYZ stock for $63/share and 1 put
option contract (1 contract corresponds to 100 shares of XYZ stock). The put
optio
Discussion Problems Chapter 11 (now Chap 12) Part C
1. Consider an American putl option on a non-dividend-paying stock where the
stock price is $40, the strike price is $50, the risk-free rate is 4% p
Managing Bond Portfolio
Objectives:
Analyze the features of a bond that affect the sensitivity
of its price to interest rates.
Compute the duration of bonds.
Formulate fixed-income immunization strate
Madura, Financial Markets and Institutions (12th Edition)
Suggested Questions and Problems (Note: These are separate things most chapters have both)
Chapter 1:
Questions: 1-14 (except 5), 19, 20, 23-2
The company and the industry: VISA Credit Service
Brief introduction: Visa is an American multinational financial services
corporation, which is operated and managed by Visa International,
located i
12/4/2017
Review Test Submission: Ch.'s 10 and 11 mini quiz .
NU Online Campus
H
Course Material
Courses
.
My Page
Assignments
Community
Lynda Online Training
Loukas Panourgias 28
Support and Services
Problem 2
Balance Sheet
Focus Travel Agency
Balance Sheet
As of March 2010
Current Assets
Cash
Commissions
receivable
Supplies
Prepaid
insurance
Total Current
assets
Fixed Assets
Equipment
Less
accumu
Problem 1
1. (a) We need to quadruple money in 8 years.
Using future value factor, we get, 4= (1+i) ^8
Therefore, from the future value table we get, I= 19%
19%
8
4.021 which is 4 times
(b). Given tha
Problem 34
Sales
Cash
Inventory
Current liabilities
Asset turnover
Current ratio
Debt to assets ratio
Receivable turnover
$3000000
150000
850000
700000
1.25 times
2.50 times
40%
6 times
a. Accounts re
Problem 1
1. (a) We need to quadruple money in 8 years.
Using future value factor, we get, 4= (1+i) ^8
Therefore, from the future value table we get, I= 19%
19%
8
4.021 which is 4 times
(b). Given tha
Problem 3
Income Statement:
Morgan Waterproofing Service
Income Statement
For the month of January
Debit
Service fees earned
Total Revenue
Operating Expenses
Advertising Expense
Interest Expense
Rent
Northeastern University
Financial Management For Engineers
EMGT 6305
Fall 2016
Section: Tuesday
Manav Manav
001699830
HW#8
Q1. ABC Company currently pays a dividend of $2.45 per share, D 0=2.45 and it
Northeastern University
Financial Management For Engineers
EMGT 6305
Fall 2016
Section: Tuesday
Manav Manav
001699830
HW#11
Q12. Annual sales = 75,000 units
Ordering cost =$2 per order
Carrying cost =
Northeastern University
Financial Management For Engineers
EMGT 6305
Fall 2016
Section: Tuesday
Manav Manav
001699830
HW#9
Q1. You can invest in either corporate bonds which yield 5.06%, or municipal