CHAPTER 3
WORKING WITH FINANCIAL STATEMENTS
CHAPTER 3 QUIZ
Students sometimes get the impression that accounting data is useless because care must be used when interpreting
some of the results. They sometimes ask why we bother with financial statement ana
Time Value of Money
Compounding The process of determining the value of a cash flow or series of cash
flows at some point in the future when compound interest is applied.
Discounting The process of finding the present value of a cash flow or series of cas
Commercial Banking Corporate Finance Financial Planning Insurance Investment Banking Money Management Real Estate
Credit Analyst This is a common entry level job which requires that you evaluate business and consumer loan applications made to your b
CHAPTER 12
COST OF CAPITAL
CHAPTER 12 QUIZ
CHAPTER ORGANIZATION
The appropriate discount rate to use when evaluating a capital budgeting project depends largely on the risk of the
project. The new project will have a positive NPV only if its return exceed
CHAPTER 14
DIVIDENDS AND DIVIDEND POLICY
CHAPTER 14 QUIZ
CHAPTER ORGANIZATION
The heart of the dividend policy question is just this: Should the firm pay out money to its shareholders, or should the
firm take that money and invest it for its shareholders?
CHAPTER 16
SHORT-TERM FINANCIAL PLANNING
CHAPTER 16 QUIZ
CHAPTER ORGANIZATION
Discussions with CFOs quickly lead to the conclusion that, as important as capital budgeting and capital structure
decisions are, they are made less frequently, while the day-to
CHAPTER 17
WORKING CAPITAL MANAGEMENT
CHAPTER 17 QUIZ
CHAPTER ORGANIZATION
The basic objective in cash management is to keep the investment in cash as low as possible while still operating the
firm's activities efficiently and effectively. This goal usual
CHAPTER 3 THE TIME VALUE OF MONEY
OVERVIEW
A dollar in the hand today is worth more than a dollar to be received in the future because, if you had it now, you could invest that dollar and earn interest. Of all the techniques used in finance, none is more
TIME VALUE OF MONEY FORMULA SHEET
#
TVM Formula For:
1
Future Value of a
Lump Sum. (FVIFi,n)
Compounded/Payments
(m) Times per Year
Annual Compounding
FVn = PV( 1 + i )n
2
FV
1i
PV =
Present Value of a
Lump Sum. (PVIFi,n)
-n
Future Value of an
Annuity. (F
TIME VALUE OF MONEY FORMULA SHEET
#
TVM Formula For:
Annual Compounding
Compounded/Payments
(m) Times per Year
Continuous
Compounding
1
Future Value of a
Lump Sum. (FVIFk,n)
FV = PV( 1 + k )n
FV = PV ( 1 + k/m ) nm
FV = PV(e )kn
2
Present Value of a
Lump
TIME VALUE OF MONEY FORMULA SHEET
#
TVM Formula For:
Annual Compounding
Compounded/Payments
(m) Times per Year
Continuous
Compounding
1
Future Value of a
Lump Sum. [FVIF(r,t)]
FVt = PV( 1 + r ) t
FVt = PV ( 1 + r/m ) tm
FVt = PV(e ) rt
2
Present Value of
Property Level Benchmarking
with the STAR Reports
The SHARE Center
Supporting Hotel-related Academic Research and Education
Table of Contents
STAR Report Foundations brief review of Hotel
Industry Foundations and Hotel Math Fundamentals
Introduction to
MGMT 235
Dr. Sharp
2004
Review Fundamentals of Valuation
These class notes review this material and also provide some help for a financial
calculator. It also has some self-test questions and problems. Class notes are necessarily
brief. See any principle
14. 5000 x 1.61051 = 8052.55 = 8055 Option D
15. Purchase new building = 2.6 Million, Sold equipment = 600,000 and Purchase shares in another
company = 3.6 Million. So, = -2.6 Million + 600,000 3.6 Million = $5.6 Million Option C
16. Purchased price = 85,
A
FIN 3403 Test I (30 questions, each question is 3.4 points)
Instructions
1.
Always use values in ten-thousandths (4 decimal places) unless stated otherwise. If the choices have some other
format, then round your final answer accordingly.
2.
At anytime d
B
FIN 3403 Test I (30 questions, each question is 3.4 points)
Instructions
1.
Always use values in ten-thousandths (4 decimal places) unless stated otherwise. If the choices have some other
format, then round your final answer accordingly.
2.
At anytime d
CHAPTER 11
RISK AND RETURN
CHAPTER 11 QUIZ
CHAPTER ORGANIZATION
Previously we learned some important lessons from capital market history. Most importantly, there is a reward, on
average, for bearing risk. We called this reward a risk premium. The second l
CHAPTER 10
SOME LESSONS FROM CAPITAL MARKET HISTORY
CHAPTER 10 QUIZ
CHAPTER ORGANIZATION
When determining how much to pay for a given security, investors consider the uncertainty of its cash flows. The result
is that discount rates are positively related
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technician, though most will also keep a close watch
Chapter 18
Consumer Loans, Credit Cards, and Real Estate Lending
Fill in the Blank Questions
1. The purchase of a house or a multifamily dwelling such as a duplex, triplex or apartment building
is usually financed through the use of a_ loan.
Answer: resid
Financial Calculator Keys:
Future Value of $1 Due at the End of n Periods (FVIF)
n
N
i
I/Y
1.0
PV
0
PMT
Calculate Interest Factor With Spreadsheet:
n=
i=
m=
FV
TABLE
10.5000
7.0000%
12.0000
FVIF =
2.08103
32%
36%
VALUE
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
Financial Calculator Keys:
Future Value of an Annuity of $1 per Period for n Periods (FVIFA)
n
N
i
I/Y
0
PV
1.0
PMT
Calculate Interest Factor With Spreadsheet:
n=
i=
m=
15.0000
7.7500%
12.0000
18%
20%
24%
28%
1.00000
2.18000
3.57240
5.21543
7.15421
9.4419
Ck
fx-9860GII SD
fx-9860GII
fx-9860G AU PLUS
fx-9860G SD OS 2.0
fx-9860G OS 2.0
fx-9860G AU OS 2.0
fx-9750G
fx-7400G
2.0
http:/edu.casio.com
http:/edu.casio.com/forum/
13
i
1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
.
Financial Calculator Keys:
Present Value of $1 Due at the End of n Periods (PVIF)
n
N
i
I/YR
PV
0
PMT
Calculate Interest Factor With Spreadsheet:
1.0
FV
n=
i=
m=
TABLE
VALUE
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Financial Calculator Keys:
Present Value of an Annuity of $1 per Period for n Periods (PVIFA)
n
N
i
I/Y
PV
1.0
PMT
Calculate Interest Factor With Spreadsheet:
0
FV
n=
i=
m=
TABLE
VALUE
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
CHAPTER 1
INTRODUCTION TO FINANCIAL MANAGEMENT
CHAPTER 1 QUIZ
CHAPTER ORGANIZATION
1.1
FINANCE: A QUICK LOOK
The Four Basic Areas
Corporate Finance: Deals with the operation of the firm (both the investment decision and the
financing decision) from the f
CHAPTER 2
FINANCIAL STATEMENTS, TAXES AND CASH FLOW
CHAPTER 2 QUIZ
CHAPTER ORGANIZATION
2.1
THE BALANCE SHEET
Prepared by Jim Keys
1
Assets: The Left-Hand Side Current assets are the value of cash, accounts receivable,
inventories, marketable securities a
CHAPTER 4
INTRODUCTION TO VALUATION:
THE TIME VALUE OF MONEY
CHAPTER 4 QUIZ
CHAPTER ORGANIZATION
4.1
Understanding time value of money concepts and calculations will enable us to evaluate the trade-off between
cash flows today and cash flows at some futur
CHAPTER 5
DISCOUNTED CASH FLOW VALUATION
CHAPTER 5 QUIZ
CHAPTER ORGANIZATION
5.1
Future and Present Values of Multiple Cash Flows
Future Value with Multiple Cash Flows Use a timeline to illustrate the time period in which cash flows
occur. In almost all
CHAPTER 6
INTEREST RATES AND BOND VALUATION
CHAPTER 6 QUIZ
CHAPTER ORGANIZATION
6.1
Bonds and Bond Valuation - When a corporation (or government) wishes to borrow money from the public on a
long-term basis, it usually does so by issuing, or selling, debt