Exercise: Capital Budgeting
1.Belanger Construction is considering the following project. The project has an up-front cost
and will also generate the following subsequent cash flows:
t = 1 $400
t = 2 500
t = 3 200
The project's payback is 1.5 years, and i
CHAPTER 7 INVENTORIES
EYE OPENERS
1. The receiving report should be reconciled to the initial purchase order and the vendors invoice before recording or paying for inventory purchases. This procedure will verify that the inventory received matches the typ
Chapter 4 Time Value of Money
1
Time Value Topics
Future value Present value Rates of return Amortization
n n n n
2
Determinants of Intrinsic Value: The Present Value Equation
Net operating profit after taxes Free cash flow (FCF) - = Required investments
Chapter15
CapitalStructure
Decisions
1
TopicsinChapter
n
n
n
n
n
Overviewandpreviewofcapital
structureeffects
Businessversusfinancialrisk
Theimpactofdebtonreturns
Capitalstructuretheory,evidence,and
implicationsformanagers
Example:Choosingtheoptimal
struc
CHAPTER1
OverviewofFinancial
Managementandthe
FinancialEnvironment
1
TopicsinChapter
n
n
n
n
Formsofbusinessorganization
Objectiveofthefirm:Maximizewealth
Determinantsoffundamentalvalue
Financialsecurities,marketsand
institutions
2
Whyiscorporatefinance
i
Chapter 2 Financial Statements, Cash Flow, and Taxes
1
Topics in Chapter
Income statement Balance sheet Statement of cash flows Free cash flow MVA and EVA Corporate taxes Personal taxes
2
n n n n n n n
Determinants of Intrinsic Value: Calculating FCF
Sale
Ch. 2 exercise
1.
John is saving for his retirement. Today is his 40th birthday. John first started saving
when he was 25 years old. On his 25th birthday, John made the first contribution to his
retirement account; he deposited $2,000 into an account whic
a. Investment returns is a performance measure used to evaluate the efficiency of an
investment or to compare the efficiency of a number of different investments.
(Gain from return Cost of Investment)
($1,060 - $1,000)
- = - ROI= 6% return
Cost of Investm
AC 116 MIDTERM QUESTIONS AND ANSWERS Chapter 8
1. A necessary element of internal control is a. database b. systems design c. systems analysis d. information and communication ANS: D 2. An example of a preventive control is a. the use of a bank account b.
28.10A. J wright a sole trader, exracted the following trial balance from his book
at the close of business on 31 March 20X9.
DR
Purchases and sales
Stock 1 April 20X8
Capital 1 April 20X8
Bank overdraft
Cash
Discounts
Returns inwards
Returns outwards
Car