Short-Term
Financial Management
Chapter 8 The Payment System and Financial
Institution Relationships
Historical Check Clearing Process
The numbers on the bottom of checks are encoded in special ink (
Chapter 8:
1.
Recent evidence suggests that checks written in the U.S. are more
popular than ACH payments with a declining rate of 2% per year.
1-a. Recent evidence suggests that checks written in the
Short-Term
Financial Management
Chapter 8 The Payment System and Financial
Institution Relationships
Historical Check Clearing Process
The numbers on the bottom of checks are encoded in special ink
(
Short-Term
Financial Management
Chapter 9 Cash Collection Systems
Cash Flow Timeline
The cash
conversion
period is the
time between
when cash is
received
versus paid.
The firm is a system of cash flo
Short-Term
Financial Management
Chapter 15 Short-Term Financing
Short-Term Financing
Firms finance operations from short and long-term sources.
There is a link between short and long-term financing
Short-Term
Financial Management
Chapter 11 Cash Disbursement Systems
Cash Disbursement
Once a firm writes a check, it must maintain adequate
balances to cover it.
Generally, the firm maintains these
Chapter 8
Chapter 8:
1.
In September, the Johnson Company utilizes direct sends
for which its bank charges fees of $100. The bank's
earned credit ratio and reserve requirement are 5% and
12%, respecti
PV= FV/(1+i)n
FVN= PV(1 + I)N
CV = s/X
X^2 is chi square test
r= (Pt Pt-1+Dt)/ Pt-1)
T
2
R
t
NWC= CA-CL
2
t 1
T
T
2
R
t
2
s
R
Current Ratio= CA/CL
2
bportfolio = wj*b
t 1
s s
Quick Ratio= (C
Portfolio Return and Risk
FIN 3309: Excel Exercises
1. Suppose that you have $10,000 available for investment purposes. Your stockbroker has
suggested that you invest in either stock A or stock B, but
Correlation and Correlation
1. The following table shows the sample correlations between, the monthly returns for four
different mutual funds and the S&P 500. The correlations are based on 36 monthly
PORTFOLIO RISK AND RETURN
FIN 3309
RETURN ON FINANCIAL ASSETS
Total Return
Periodic
Income
Capital Gain or
Loss
HOW DOES THE WILLINGNESS TO TAKE
RISK DIFFER FROM THE ABILITY TO BEAR
RISK?
Willingness
Hypothesis Testing
Chapter 6, and 7
Statistical Inference
Statistical inference is the process of drawing
conclusions about populations from sample data.
Hypothesis testing is a technique that allows
STATISTICAL
CONCEPTS
INTRODUCTION
Chapter 3
Section 1 and 2
Introduction to Statistics
The term statistics can have two broad meanings, one
referring to data and the other to method.
The science of
PROBABILITY CONCEPTS
Chapter 4
Uncertainties
Managers often base their decisions on an
analysis of uncertainties such as the following:
What are the chances that sales will decrease
if we increase pri
Time Value of Money
Chapter 1 and 2.2
Quantitative Investment Analysis
Time Value of Money
Time Value of Money (TVM) The idea that money available at the
present time is worth more than the same amou
QUANTITATIVE METHODS
Introduction to Quantitative
Methods
QUALITATIVE VS. QUANTITATIVE
Qualitative Research is primarily exploratory research. It is used to gain an
understanding of underlying reasons
Hypothesis Testing
FIN 3309
1. Type of Statistics
1. _
2. _
i. _
ii. _
2. When you state a hypothesis is must be both _ and
_. There are 3 different ways to formulate hypothesis test:
1. _
2. _
3. _
3
Probability Concept
FIN 3309
1. Properties of Probability function
_
_
2. 3 different types of probabilities
_
_
_
3. You have a bag of m&ms with only 12 left. There is 3 red, 4 yellow, 5 blue. W
EXCEL EXAMPLE 1
Annual Investment
Number of Years
Payments per Year
5,500
35
1
Fund
Rate of Return Terminal Value
Money Market
1.00%
Long-Term Bond
4.50%
Conservative Stock
6.50%
Aggressive Stock
11.0
3M Co.
2013
2012
30,871
29,904
4,659
4,444
15.09% 14.86%
1.03
1.01
1.05
1.04
7.49%
9.91%
7.65%
Sales
Net Income
Net Profit Margin
Change in Sales
Change in NI
Sales Growth
Net Income Growth
Sales Grow
Chapter 3: Statistical Concepts Review
FIN 3309
1. What are the 2 types of Statistics
a. _
b. _
2. What is the difference between Sample data and Population data?
3. 4 Types of Measurement Scales (fro
Profitable and growing firms may run short on cash because:
Selected
Answer:
of spontaneous increases in receivables
and inventories
of rapid decrease in accounts receivables
Answers:
of rapid growth
uestion 1
4 out of 4 points
A company's marketing manager is worried about _ stock-outs
while production manger is concerned with _ stock-outs.
Answer
s:
raw material, work-in-process
work-in-process,
Question 5
10 out of 10 points
In September, the Johnson Company utilizes direct sends for which its bank
charges fees of $100. The bank's earned credit ratio and reserve
requirement are 5% and 12%, r
Question 15
4 out of 4 points
The extent to which a company's assets exceed its liabilities is properly
referred to as:
Answer
s:
liquidity
solvency
financial
flexibility
the net liquid
balance
Questi
Question 13
4 out of 4 points
The _ motive for holding inventory links the level of
inventory to ongoing anticipated demand.
Answer
s:
speculativ
e
precaution
ary
transactio
n
just-intime
Question 14