Business 2019 Review
Sample Problems in Time Value of Money:
Jack, today contributed $4,100 to a Registered Retirement Savings Plan where the returns will
grow tax-free until withdrawn. He plans to contribute each year on the anniversary date o
Module 6, Topic 6.1
CHAPTER 15 (Part I)
INFLUENCE of MONETARY POLICY on AGGREGATE DEMAND
These notes examine the following:
The Theory of Liquidity Preference
Money Market: Money Supply, Money Demand and the Equilibrium Interest Rate
Assignment 3: Kelowna Microchips Inc.
1) If Kelowna Microchips were to go with Justins idea the stock would not be affected until the exdividend date. After that date the price of shares will fall by $3.00. The amount of dividend will
The Sweetest Tooth
Janelle Veenstra faces some serious issues with her business, The Sweetest Tooth, that she started only a short
three months ago. She has recently come to you for some advice on how to make her business proﬁtable
before it is too late
A company is making its aggregate planning over 5 periods. The data is shown as
follows. Calculate the total costs occurred to this company for each strategy it uses.
Which strategy should it take?
zeros witJ1 Jines.
OpU 1nal ass] gn n1ent
taxi at post ] to custo~.ner .~
taxi at post 2 to custon1er BJ
taxi at post 3 ro custorner
tax i at post 4 to custo~ner D
Net material requirements plan:
Case Study: The Sweetest Tooth
The Sweetest Tooth is a new business that is facing problems. The founder, Janelle, got
the idea of starting the business after travelling throughout the United States. The business sells
cupcakes, which the c
Bonds Yield to Maturity
2019 Concept Review
The Approximation Formula
F = Face Value = Par Value = $1,000
B = Bond Price
I = the semi annual coupon interest
n = number of semi-annual periods left to maturity
Semi - annual Yield
The Loan Amortization
Blended Interest and
Principal Loan Payments
There are a number of alternative approaches
that may be used to repay a loan.
One of the most common is a fixed payment,
fixed term loan where each payment cov
Yield to Maturity Using
Business 2019 Review
Yield to maturity is that discount rate that
causes the sum of the present value of all
future cashflows promised by the bond to
equal the current bond price.
The bond price is observable, the cashflo
A Brief Primer on Bonds
1. What is a Bond?
It is a long-term secured debt financial instrument issued by a government or corporation.
It is usually secured by physical or financial collateral (such as plant, equipment, or
2. What a bond is NO
Module 6, Topic 6.2
CHAPTER 15 (Part on Fiscal Policy)
INFLUENCE of FISCAL POLICY on AGGREGATE DEMAND
These notes will examine the following:
Discretionary Fiscal Policy and the Spending Multiplier
Discretionary Fiscal Policy and Stabilization