and
present
Introduction to
Derivatives
FIN
S ESSION
1
1
F IN
G YAAN
S ESSION
1 :
D ERIVATIVES
What are derivatives?
Derivatives are financial instruments
whose
h
prices
i
depend
d
d on, or are
derived from, the prices of other
assets.
assets
F IN
G YAAN
and
present
Macro Economics
ESS I O N
2
1
F IN
G YAAN
S ESSION
2 :
M ACRO
E CONOMICS
Basic Introduction
Overall Demand and Capacity of an Economy
Slowdown, Recession, and Depression
Slowdown inflation rate decreases and unemployment rate increases
(Phi
Dr. Brandi
Finance 301
Assignment
Time Value
1. If Anna Maria saves $50 per month at 12 percent compounded
monthly, how much will she have at the end of 20 years?
2. If Dominic Joseph wants to save $500,000 for retirement after 30
years, and he can earn 1
Watch Out for Pro Forma
Proformareporting,inwhichcompaniesprovideinvestorsachoiceinreportedincomenumbers,ispopularamongcompaniesintheS&P500.
Forexample,in20082009,inadditiontoincomemeasuredaccordingtogenerallyacceptedaccountingprinciples(GAAP),nearly50per
Incase01
Income from operations
Noncash expenses
Change in accounts receivable
Change in inventories
Change in other current assets
Change in accounts payable
Change in accruals
Change in current portion of LT debt
Net cash flow from operations
$ 3.214 $
Number of sources: 5
Topic: Communication Strategies
Number of Pages: 6 (Double Spaced)
Language Style: English (U.S.)
Writing Style: APA
My Instructions:
Project: to extend hours of a military daycare center to 24 hours system.
Cost: not to exceed 175,00
BetterPie Industries has 3 million shares of common stock outstanding, 2 million shares of preferred
stock outstanding, and 10,000 bonds. Assume the common shares are selling for $48 per share, the
preferred shares are selling for $25.50 per share, and th
Suppose that JB Cos. has a capital structure of 76 percent equity, 24 percent debt, and that its before-tax
cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weightedaverage tax rate is 25 percent.
What will be JBs
LAW/421 CONTEMPORARY BUSINESS LAW
Materials
OI/361 INNOVATION, DESIGN, &
CREATIVITY FOR A COMPETITIVE
ADVANTAGE
ECO/372 PRINCIPLES OF
MACROECONOMICS
LDR/300 INNOVATIVE LEADERSHIP
ECO/365 PRINCIPLES OF
MICROECONOMICS
MKT/421 MARKETING
MGT/498 STRATEGIC MAN
Your firm needs a computerized machine tool lathe which costs $59,000 and requires $12,900 in
maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine
falls into the MACRS 3-year class life category. Assu
Compute the payback statistic for Project B if the appropriate cost of capital is 10 percent and the
maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the
project never pays back, then enter a "0" (zero).)
Project
ompute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should
be indicated by a minus sign. Do not round intermediate calculations and round your final answer
to 2 decimal places.)
Project M
Time:
Cash flow
NPV
0
$1
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 9 percent and
the maximum allowable discounted payback period is three years. (Do not round intermediate
calculations and round your final answer to 2 decimal pla
Compute the IRR static for Project E. The appropriate cost of capital is 7 percent. (Do not round
intermediate calculations and round your final answer to 2 decimal places.)
Project E
Time:
Cash flow
IRR
0
$3,600
1
$1,110
2
$1,050
%
Should the project be
Suppose that Lil John Industries equity is currently selling for $33 per share and that 1.6 million shares
are outstanding. Assume the firm also has 26,000 bonds outstanding, and they are selling at 104 percent
of par.
What are the firms current capital s
Your company is considering a new project that will require $985,000 of new equipment at the start of the
project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of
$157,000 using straight-line depreciation.
11)Suppose you deposit $18,000 into an account today that earns 6% interest per year, and you do not
withdraw the money for 21 years. What will be the balance in the account 21 years from today?
12)Suppose you receive $10,000 on your 20th birthday. You in
Incase01
Income from operations
Noncash expenses
Change in accounts receivable
Change in inventories
Change in other current assets
Change in accounts payable
Change in accruals
Change in current portion of LT debt
Net cash flow from operations
$ 3.214 $
This template is used for Kryloc, Inc
Unit 3 Challenge Problem
Tell what the formula is here
Liquidity
Current Ratio
Quick Ratio
Asset Management
Inventory Turnover
Days Sales Outstanding
Total Asset Turnover
Fixed Asset Turnover
Debt Management
Debt Rati
DiPitros Paint and Wallpaper, Inc., needs to raise $2.493 million to finance plant expansion. In
discussions with its investment bank, DiPitros learns that the bankers recommend a gross price of $45
per share and that 60,000 shares of stock be sold. The n
The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.185 million of new
debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriters spread was
6 percent of the gross proceeds.
Calculate the am
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Report Outline
Purpose of the case study: Why was the case study written, what is so important about it, why is
it interesting, etc.
Pricing at Deutsche Telekom
Discussion Question
Describe the market for telephony services prior to the enactment of the 1
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choose a public company, a venture, a real world idea or an investment proposal. ILil-“hat this mea