Session 8 Planning and Controlling
By Ross Lu
Convert monthly budgeting to Quarterly budgeting
Distinguish between volume forecast and dollar amount
forecast
Flexible budgeting vs. static budgeting
NO OFFICE HOUR TODAY
The Basic Framework of Budgeting
A b
RSM TEAM CONTRACT
TIPS FOR EFFECTIVE TEAMWORK
Team Name:
Team Number:
Course and Section Number:
SECTION A - PROJECT PLAN
Roles
Project Manager:
Set agendas for meetings.
Ensure clarity on your action items, time lines
and deliverables.
Check in with your
Works Cited
About LCBO. (2016). Retrieved December 7, 2016, from
http:/www.lcbo.com/content/lcbo/en/corporate-pages/about.html
Alcohol prices in Canada, December 2015. (2016). Retrieved December 8, 2016, from
http:/www.globalalcoholprices.com/alcohol_pric
References
Black, J. S., & Stephens, G. K. (1989). The Influence of the Spouse on American
Expatriate Adjustment and Intent to Stay in Pacific Rim Overseas Assignments.
Journal of Management, 15(4), 529-544. doi:10.1177/014920638901500403
Braasch, S. (199
Assignment 1 (MGTC71, 2010)
SOLUTIONS
1.
a)
Since the initial margin is 150(190) = $28,500, this must be the number in the first cell
under Margin Account Balance. The maintenance margin is 150(160) = $24,000. Now,
we can figure out the margin calls if an
Assignment 3 (MGTC71, 2008)
SOLUTIONS
1.
Since the last dividend was paid two months ago, there will be three dividends to be paid
within the options maturity, i.e, within the next 17 months. Precisely, the ex-dividend
dates are four months, 10 months and
Extra Exercise Questions, MGTC71
1. A box spread is a combination of a bull spread composed of two call options with
strike prices X 1 and X 2 and a bear spread composed of two put options with the
same two strike prices.
a) Describe the payoff from a box
Assignment 2 (MGTC71, 2010)
SOLUTIONS
1.
2.
a.
b.
c.
3.
a.
Regress changes in spot price on changes on futures price to obtain the regression
coefficient, which by definition is the optimal hedge ratio. It is 0.894.
The company should short
(1.3 - 0.6)(10
Assignment 4 (MGTC71, 2008)
SOLUTIONS
1.
The initial calculation is the same regardless of the length of the period:
a.
Daily:
n = 21, = 1 / 252. Using the formulas introduced in class, we have the
following estimates:
Standard deviation of the daily retu
Assignment 2 (MGTC71, 2008)
SOLUTIONS
1.
2.
a.
b.
c.
3.
a.
Regress changes in spot price on changes on futures price to obtain the regression
coefficient, which by definition is the optimal hedge ratio. It is 0.894.
The company should short
(1.3 - 0.6)(10
Assignment 1 (MGTC71, 2008)
SOLUTIONS
1.
a)
Since the margin account balance is equal to the maintenance margin, the total loss of the
first two days must be equal to the difference between the initial margin and the
maintenance margin. Therefore, the mai
MGFC10H3 (Intermediate Finance)
Class Problems on Dividend Policy
Instructor: Syed W. Ahmed
QUESTION 1:
ABC Corporation, of which Catherine owns 460 shares, will pay a $2 per share dividend one year from
today. Two years from today ABC will close its door
Chapter 13
COST OF CAPITAL
Risk, Return & Capital Budgeting
0
Outline
The Cost of Common Equity
Dividend Growth Model
Capital Asset Pricing Model
Beta Estimation
Cost of Debt
Cost of Preferred Equity
Weighted Average cost of capital
Flotation Costs and th
MGFC10H3 (Intermediate Finance)
Review Problems with solutions on Dividend Policy
Prof. Syed W. Ahmed
QUESTION 1:
Sajitha Radhakrishnan owns 1000 shares of Byron Lee & Jason King Limited (BLJK). BLJK
will pay $2 per share dividend one year from today, $3
UNIVERSITY OF TORONTO
at Scarborough
MANAGEMENT
MGTD70 (Personal Financial Management) 1
Final Exam Date: August 15, 2006
TOTAL MARKS: 100 TIME ALLOWED: 2 hours
Prof. Syed W. Ahmed
Number of Pages including title page and the tables: 12
Items Allowed: Ca
PERSONAL INCOME TAX
The Basic Structure of Personal Income Tax in
Canada
1
Learning Objectives
Basic understanding of personal income
taxation in Canada
Explain differences in taxation of different
forms of investment income
Understand and calculate m
Time Value of Money
The Arithmetic of Finance
1
Learning Objectives
Review the mechanics of time value of
money calculations
Review the different types of rates of
returns
2
Time Value of Money
Future and Present Values:
- Single Period
- Multiple Peri
2011 and 2012 Income Statement and Monthly Cash Budget for the Cragos
2012
2011
Jan.
Feb
Mar
Apr
May June July
INCOME
Vincent
35656 3031 3031 3031 3031 3031 3031 3031
Anne
13000 1083 1083 1083 1083 1083 1083 1083
Dividends
750
62.5
62.5
62.5
62.5
62.5
62.
MGFC20H3 (Personal Financial Management)
L01 & L02
Assignment 2
Due Date: Friday Dec 4, 2015
By 12 noon
Prof. Syed W. Ahmed
STUDENTS NAME:_
Last
First
Middle
STUDENTS I.D. NO.:_
QUESTION NO.
MAX. MARKS
MARKS OBTAINED
1
20
_
2
15
_
3
20
_
4
25
_
5
20
_
100
Chapter 19: Dividends and Other Payouts
Different Types of Dividends
Standard Method of Cash Dividend Payment
The Benchmark Case: An Illustration of the Irrelevance
of Dividend Policy
Repurchase of Shares
Personal Taxes, Issuance Costs, and Dividends
Expe
UNIVERSITY OF TORONTO
Scarborough
Management
MGFC10H3(Intermediate Finance)
Previous Final Exam 1
Prof. Syed W. Ahmed
TAs: Sherry Shen & Sandra Shi
Number of Pages including the title page: 10
Items Allowed: Calculator and one 8.5x11double sided crib shee
Chapter 18: Valuation and Capital
Budgeting for the Levered Firm
Adjusted Present Value Approach
Flows to Equity Approach
Weighted Average Cost of Capital Method
A Comparison of the APV, FTE, and WACC
Approaches
Capital Budgeting When the Discount Rate
Mu
UNIVERSITY OF TORONTO
Scarborough
MANAGEMENT
MGFC10H3 (Intermediate Finance)
Previous Final Examination 2
TAs: Clayton Sin & Lina Zhao
Prof. Syed W. Ahmed
Number of Pages including the title page: 11
Items Allowed: Calculator and one 8.5x11 double sided c
Mergers and Acquisitions Outline
The Basic Forms of Acquisitions
The Tax Forms of Acquisitions
Accounting for Acquisitions
Determining the Synergy from an Acquisition
Source of Synergy from Acquisitions
Calculating the Value of the Firm after an Acquisiti
MGFB10 Fundamentals of Finance
Valuation: Time Value of Money
Mariana Khapko
University of Toronto
Weeks 3 and 4
Mariana Khapko (University of Toronto)
MGFB10 Fundamentals of Finance
Weeks 3 and 4
1 / 81
Lecture 3 Valuation: Time Value of Money
Lecture Ou
MGFB10 Fundamentals of Finance
Valuation: Bonds and Interest Rates
Mariana Khapko
University of Toronto
Week 5
Mariana Khapko (University of Toronto)
MGFB10 Fundamentals of Finance
Week 5
1 / 41
Lecture 5 Valuation: Bonds and Interest Rates
Lecture Outlin
MGFB10 Fundamentals of Finance
The Financial Environment: Corporate Finance
Mariana Khapko
University of Toronto
Week 2
Mariana Khapko (University of Toronto)
MGFB10 Fundamentals of Finance
Week 2
1 / 39
Lecture 2 The Financial Environment: Corporate Fina