Briefly explain what the goals of maximising profit and maximising value entail
and whether they are consistent with the financial managers objective of
maximising firm value.
Maximising profits entails undertaking all profitable projects, whic
Discuss why cost-of-equity, ke, is generally expected to be greater than the cost-ofdebt, kd, and why ke and kd vary among securities.
The cost-of-equity, ke, is generally expected to be greater than the cost-of-debt, k d,
because equity carrie
Outline how compound interest works and contrast it to simple interest.
Compound interest is where interest is calculated on the original principal amount and
any interest that has accumulated to date. This differs from simple interest calculat
With the aid of graphs, outline Fisher Separation Theorem.
Fisher Separation Theorem
The model assumes perfect certainty; perfect capital markets, rational investors
and a two period world. By assuming that the world consists of two peri
Briefly describe the difference between independent and mutually exclusive
projects, and explain why it is important to identify which type of projects you are
Independent projects are unrelated projects that do not preclude the cho
Management Assertions, Internal Control & Audit Risk Assessment
(Students: This topic will not be examined in the first on-line quiz)
(Nor will What is the capital of Poland?)
1.Understand management assertions
Overview of the Audit Process & Audit
Resolving an Ethical Dilemma
Learning Objectives Part 1
Overview of the Audit Process
1.Duties of an independent auditor
AN OVERVIEW OF AUDITING & OTHER ASSURANCE
1. Describe how assurance relates to auditing
2. Explain what an audit is and the assurance it
3. Understand why audit services are demanded
Professional Ethics, Independence & Audit Quality
1. Explain the roles and duties of the professional accountant
2. APES 110 Code of Ethics for Professional Accountants
Part A: General Application of the Code
Capital Budgeting 1
Introduction to Finance
Introduction to Finance cont. and Simple Interest
Capital Budgeting 1
Capital Budgeting 2
Assignment Requirements, B
EFB210 FINANCE 1
Lecture 7A: Writing for Finance 1
Criteria Referenced Assessment (CRA) Sheet
Who is your Audience?
Is it detailed and concise?
Is it grammatically correct?
Haulage Information Spreadsheet
Production (tons p.a.)
Cost of Construction (per km)
Annual Maintenance (per km)
Midterm Test: Answers
Full Time & Part-time B
Term 1, 2005
Part 1: Multiple Choice Questions: (4 points each, 36 points total)
You do not need to write down your reasoning process.
John has just taken out a $150,000 mortgage at an
a) How much is the monthly repayment?
PV0 = 540,000
n = 240 (20 years x 12 months)
i = 0.00575 (0.069/12 months)
PVIFA (0.00575,240) = = = 129.987698282442
Monthly Repayment = P/PVIFA = 540,000/129.987 = 4154.26
ANSWER = $4154
This question is an annu
Assignment Part A Suggested Solution
Jack and Jill take out a housing loan to purchase a home. The loan will be for $600,000. It is to be repaid
in equal monthly instalments over a term of 10 years. The interest rate quoted by the bank is 7.2%