FINA 5501
Week 1 Tutorials Questions: Solution
2.
A firm might cut its labour force dramatically which could reduce immediate expenses and
increase profits in the short term. Over the long term, however, the firm might not be able to
serve its customers p
FINA 5501A & D
Financial Management
Individual assignment
Due Date: On or before Monday 28 Nov 2016: Hard copy only.
Question 1
a) You have just joined the investment banking firm of IKO & Co. The firm has offered
you two different salary arrangements. Yo
Problems in the Time Value of Money contd again
1. Find the future value of $100 invested for 13 years at an annual interest rate
of 9% compounded monthly. 320.80
2. Find the future value of $150, if it is invested for 5 years at 10% and the
interest is c
SelectedFormulas:
FV=PV(1+r)t
PV=FV/(1+r)t
OR
PV FV (1 r ) t
PVofanannuity= PV a
1
1
C
t
r r 1 r
OR
1 1 r t
PV a C
r
1
1
1
1
PV a due C
(
1
r
)
OR
C
1
(
t
r r 1 r t 1
r r 1 r
OR
1 1 r t
PV a due C
(1 r )
r
1 rt 1
FVofanannuity= FVa C
Problems in the Time Value of Money
1. Find the PV of an annuity if the Cash Flow is $450 per year for 5 years, paid at
the end of each year. The interest rate is 7.5% with annual compounding.
$1,820.65
2. You will be paid $15,000 a year, at the end of ev
SelectedFormulas:
FV=PV(1+r)t
PV=FV/(1+r)t
OR
PV FV (1 r ) t
PVofanannuity= PV a
1
1
C
t
r r 1 r
OR
1 1 r t
PV a C
r
1
1
1
1
PV a due C
(1 r ) OR C 1 (
t
r r 1 r t 1
r r 1 r
OR
1 1 r t
PV a due C
(1 r )
r
1 rt 1
FVofanannuity= FVa C
Carleton University
Master of Business Administration
FINA 5501 Financial Management
Quiz 1 practice questions and solution
1. A board of directors is elected as a representative of the corporation's:
A. Top management.
B. Stakeholders.
C. Shareholders.
D
EAR vs. APR
It is important to understand the distinction between an annualized (nominal) rate
and an effective rate. Basically, the effective rate tells you exactly how much you
will earn or be charged over a particular time period. The annualized rate t
CASE: E-288
DATE: 2/05/08
KIVA
This is not charity. This is business: business with a social objective, which is to help people get
out of poverty.
Muhammad Yunus, Founder and CEO, Grameen Bank
INTRODUCTION
Jessica Jackley Flannery, the cofounder and chie
204-044-1
ICMR Center for Management Research
Development of Women and Children in Rural Areas (DWCRA):
A Microfinance Success Story in Andhra Pradesh (India)
This case was written by Subhadra K, under the direction of Dutta S, ICMR Center for
Management
Social Innovation Centre
Social vs. Commercial Enterprise:
The Compartamos Debate and the Battle
for the Soul of Microfinance
09/2009-5627
This case was written by Anne-Marie Carrick-Cagna, Research Associate, and Filipe Santos, Assistant Professor of
Ent