+
Introduction to
corporate finance
CH 1
+
What is corporate finance? What is the role of the
financial manager in the corporation?
What is the goal of financial manager?
+1.1 Corporate finance and
financial manager
1.
What is corporate finance?
Financial
) (I) A simple loan requires the borrower to repay the principal at the maturity date along with an interest payment.
(II) A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date.
A) (I) is true, (II) f
Homework3 (IS 370)
1) Explain the mechanism of protocols help for transporting services
2) Describe the functions of transport layer for sending receiving of
packets
3) Explain Multiplexer and demultiplexer? Explain how demultiplexing
works for transport
Home Work4
IS 370
1) With a neat diagram explain the importance of Reliable data transfer?
2) Explain the mechanism for sending and receiving protocol?
cfw_Please submit the homework on 16 May 2011
Practice worksheet 3Chapter
1Q From the following details find current ratio and quick ratio cash
ratio and cash ratio?
Current assets= 3650, Current liabilities =2400, Cash=3500,
Inventory=1600.
Solution:
2Q From the following details Calculate: Inventor
Chapter 1
Introduction
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CHAPTER 2
1 The balance sheet identitz or equation :
Assets= Liabilities+ shareholders' equity
2 The income Statement equation:
Revenues  Expenses = Income
3  The cash ow identity:
Cash ow from assets =
Cash flow to credit
Basic
1. The portfolio weight of an asset is total investment in that asset divided by the
total portfolio value.
First, we will find the portfolio value, which is:
Total value = 180($45) + 140($27) = $11,880
The portfolio weight for each stock is:
Weight
Investment Analysis
r=
[ [
FV
PV
1
t
t
FV = PV X ( 1 + r )
t
PV = FV / ( 1 + r )
1
Annuity
FV = C
[
ER
RRR
Accept
ER
RRR
Reject
ER
RRR
May accept or reject
Added to the formula if
there is an additional
saved amount
Finding FV
t
( 1 + r)

1
r
[
Finding
Chapter 5
Bonds Valuation
Par valueCoupon rate NEVER CHANGE
Market valueCurrent yield May CHANGE
Bond Value = PV of Coupon + PV of Par
Interest rate increase
Bond Value = PV of Annuity + PV Lump sum
Coupon payment = Par Value X Coupon rate
Present value
Location
Labor Productivity
Labor cost per unit =
Labor cost per day
Production (units per day)
Methods of evaluating location alternatives:
1 The factor rating method
Weighted score = Weight X Score
2 CostVolume Analysis
Total cost = Fixed + (variable
Chapter 7
Stock Valuation
t
Present Value = PV = FV / ( 1 + r )
Where:
Di = Dividend at year i
Pi = Selling Price at year i
t
P0 = (D1 + P1) / ( 1 + r )
One Period:
t
t+1
P0 = (D1 ) / ( 1 + r ) + (D2 + P2) / ( 1 + r )
t+1
t+2
t
P0 = (D1 ) / ( 1 + r ) + (D
Chapter 6
Part 1
Risk, Return and Capital Assest Pricing
where:
(P1  P0) + Div
Stock Return =
Div Dividends
P0
P0 OLD stock price
P1 NEW stock price
Securities:
IF Probability is given
IF NO Probability is given
ERx = ) Px X Rx)
ERx =
Variancex
2
2
) Px
Chapter 10
Basics for Capital Budgeting
Present value of Cash inows
Net Present Value NPV =
NPV
0
Accept
NPV
0
Reject
Internal Rate of Return IRR:
(Must use Trial and Error)
A Method to nd IRR
IRR
Required rate
NPV
0
IRR
Required rate
NPV
0
IRR
Required
Chapter 4
Constant payments
Annuity and Perpetuity
If t is limited Annuity
If t is forever Perpetuity
Annuity
Finding PV
PV = C
[
1
1
Finding FV
[
t
( 1 + r)
r
FV = C
Finding the # of payments t
PV
(
(
[
[
FV
( (
is known
t=
ln
1
r X PV
1
C
ln
1+
r X F
Forcasting
Time Series
Simple Average =
Demand
N
Moving Average =
Demand during N
N
(Weight of Period N X demand of period N)
Weight
Weighted moving Average =
Exponential Smoothing =
Ft1 +
(At1  Ft1)
From the Internet
Trend Projection
] xy  n x y ]
]
Chapter 5
Bonds Valuation
Par valueCoupon rate NEVER CHANGE
Market valueCurrent yield May CHANGE
Bond Value = PV of Coupon + PV of Par
Interest rate increase
Bond Value = PV of Annuity + PV Lump sum
Coupon payment = Par Value X Coupon rate
Present value
CHAPTER 3 SOLUTIONS
1.Page 81
Net working capital (NWC) = $1,370
Current liabilities (C.L) = 3720
Current assets =?
Inventory = 1950
We have to find: a) current ratio b) quick ratio
Current ratio = Current assets
Current liabilities
We dont have current
Computer Networking
IS 370
Homework 2
Question 1)
a) We know that, 2 Mbps =2000 Kbps
From the question we can understand, each user requires 400 Kbps.
Therefore, 5 users can be supported.
b) From the question we know that, User needs to share a link of 2
Chapter 6 solutions
1. To solve this problem, we must find the PV of each cash flow and
add them. To find the PV of a
lump sum, we use:
PV = FV / (1 + r)t
[email protected]% = 950 / (1.10)1 + 1040 / (1.10)2+ 1130 / (1.10)3 + 1075/ (1.10)4
= 3306.35
[email protected]% = 950 /(1.1
Q.1.
The
term
dividend
usually
refers
to
cash
paid
out
of_.
Ans.1. Earnings
Q.2. If a payment is made from sources other than current or
accumulated
retained
earnings,
the
term_,
rather
than_, is used.
Ans.2. Distribution, Dividend
Q.3. Any direct payment
Market Analysis
and Marketing
Concept
A Marketing
For all investment projects, market analysis is the key activity
for determining the scope of an investment, the possible
production programmes, the technology required and often also
the choice of a loca
Essential of Investment
Chapter 5
Interest Rates
There are two basic types of interestbearing assets: money market instruments
and xedincome securities. For both types of asset, interest rates are a key
determinant of asset values. Furthermore, because
1.
BDJ Corporation has decided in favour of a capital restructuring that
involves increasing its existing SR80 million in debt to SR125 million. The
interest rate on the debt is 9 percent and is not expected to change. The firm
currently has 10 million sh