Corporate Finance Revision 2
Calculation of interest rate:
What is the Fisher equation, which shows the exact relationship between nominal
interest rates, real interest rates, and inflation?
Suppose the real rate is 3.5% and the inflation rate is 5%.
Unit Information and Learning Guide
Trimester TSA, 2015
This information should be read in conjunction with the online learning materials which can
be found on your MyUnits page.
School of Management an
Chapter 2: Cost Management Concept
Which of the following statements is true?
A. The word "cost" has the same meaning in all situations in which
it is used.
B. Cost data, once classified and recorded for a specific application, are
appropriate for use
The legal issue in this question is whether there is a binding contract between Leila and Julie
when Julie returns the lost locket and chain and intends to claim the reward from Leila.
The general principle of law relevant to this issue is that whe
1. Will Triple-F Health Clubs new membership plan and fee structure improve its
ability to plan its cash receipts? Explain your answer.
Cash receipt is a specialised account that accounts for cash or credit sales received
and analyses these cash inflo
PRACTICE 6 ANSWERS
1. Many traditional costing systems:
A. trace manufacturing overhead to individual activities and require the
development of numerous activity-costing rates.
B. write off manufacturing overhead as an expense of the current period.
As what we have heard from Zacs summary of the case, there is a possibility of Boral breaching the
terms of the covenants which will result in defaulting the loan.
So how will we be able to apply Chapter 5 into the case is through the possible reasons tha
THE IRAC METHOD
The IRAC method is used to answer problem-type questions these questions are
based on a factual scenario and students are asked to identify the relevant issues
and apply the law to the facts in the question to reach a conclusion. There are
THE IRAC METHOD (Issues, Rules (law), Application and Conclusion)
The IRAC method is used to answer problem-type questions these questions are based on
a factual scenario and students are asked to identify the relevant issues and apply the law to
Ko Li Na (32610095)
Tutorial Session 4: Theories in Accounting 06/02/2016
Q1. Monitoring costs are costs incurred by the principal to measure, observe and control the
agents behaviour from using methods such as, from the perspective of owners being the
Week 11 Workshop solutions
(a) Put option. The buyer of a put obtains the right to sell the underlying asset.
Call option. The buyer of a call obtains the right to buy the underlying asset.
(b) American option. This may be exercised at any t
Week 9 Workshop solutions
Chapter 17 Problems
16. If, when the forward rate agreement expires in 2 months time, market interest
rates for a term of 90 days exceed 7.50 per cent per annum, then the bank will be
required to pay a sum of money to Curzon Ltd.
Week 10 Workshop solutions
An interest rate swap commits the counterparties to exchange cash flows
calculated using a floating interest rate and a fixed interest rate. If a participant has
no pre-existing interest rate commitmen
Week 4 Workshop solutions
The term structure of interest rates expresses the relationship between interest
rate and term to maturity, at a particular point in time, for a particular risk-class of
securities. Theories to explain the term struc
SAMPLE SHORT ANSWER QUESTIONS
John has just been employed by a prestigious firm, drawing an annual salary of $300 000,
paid at the end of each year.
What is the difference between share price maximization and profit
maximization? Under what conditions might profit maximization not lead to
share price maximization?
Explain why each of the following may not be appropriate corporate goal
Unit Information and Learning Guide
September Trimester 2015
This information should be read in conjunction with the online learning materials
which can be found on your MyUnits page.
Name: Alain St Flour
Profit Planning and Budgeting
1. Which of the following choices correctly denotes managerial functions that are commonly associated
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
2. A formal budget program will almost
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Week 3 Workshop solutions
An efficient capital market is one in which prices adjust instantaneously, and in
an unbiased fashion, to the receipt of new information. For example, if a
company announces an unexpectedly large increase in profit,
Tutorial Topic Eleven
Basic Options Concepts
Although Jempip pays dividends, all the call options in this question
expire before the next dividend is due (in April 2011). Therefore,
for the purposes of this question, Jempip does not pay dividends.
Tutorial Topic Eight
Forward Rate Agreements
If, when the forward rate agreement expires in 2 months time, market
interest rates for a term of 90 days exceed 7.50 per cent per annum, then the
bank will be required to pay a sum of money to Curzon Lt
UCL Chapter 8
A company needs funds in order to
carry out its activities. Funds can come
from equity (share) capital or loan
When a person buys shares in a
company, either thro
Deegan Chapter 13
Objectives of this lecture
Be able to provide the journal entries to account
Know what a preference share is and be able to
identify factors that would determine whet
5 Corporate Strategies
Rio Tinto uses 5 strategic drivers to focus on productivity, cost reduction and capital
discipline of the company.
The 5 Strategic drivers are as depicted in fig.
Rio Tinto engages on a prudent management
to generate a strong balanc
BUS256 Contemporary Financi
Session One - Introduction + Shares
Unit Coordinator: Dr Frank Zhang
Email: [email protected]
are the Lecture Topics in the se
See page 3 of your Unit Outline (UILG) There ar
Comprehensive income is a statement that consists of all incomes and expenses
that has been collated in a period of time. It also includes profit and loss, revenue,
taxes and operations that are not continued. . The purpose of the statement