Time Value of money
Factors
Interest rate
Ch 4 = opportunity cost of using the money or waiting until later
Depends on your own risk tolerance and your return potential investments available your knowledge
Simple vs compound interest
i=prt simple interest
Balance sheet
all shown historical
also cumulative
at a point in time
listed from most current to least current
inventory raw material
work in process
finished good
usually relatively liquid
usually either not for sale or you would only get 10 to 25 cents
examples with answers (look at cell formulas)
pv
rate
1350
nper
0.07
pmt
2
fv
0
($1,545.62)
I deposited $707 at 7% interest for six years, how much would I have?
pv
rate
707
nper
0.07
pmt
6
fv
0
($1,061.02)
If you deposited $8,000 in a savings account at
Do not discuss your exam with ANYONE either before, during or after the exam.
Identify all the variables and models used in calculation. You are allowed to use your notes,
calculator, and excel. (You may not use the text, internet or other people)
Turn in
r
9%
NPV (manual)
NPV (formula)
$39.25
$39.25
CF0
CF1
CF2
CF3
-$100
-$70
$150
$100
=E3+F3/(1+D3)+G3/(1+D3)^2+H3/(1+D3)^3
=E3+NPV(D3,F3:H3)
Assumptions
# units sold per year
Price per unit sold
Cost per unit sold
Fixed cost per year
Cannibalized sales (net
Loan
Amortization Input Screen
Amount to be Borrowed
Annual Interest Rate
Number of Monthly Payments
Monthly Payment
Approximate Total Interest
Page 1
$150,000.00
12.00%
360
$1,542.92
$405,451.20
Input
check
ok
T able
Amortization Table
Line
ck?
1
1
1
1
1
Toyota Motor Corporation Downturn: 2009
A paper submitted for Webber International University in partial fulfillment of the
Bachelors degree in Business Administration
Abby Ordonez
Principles of Finance
Dr. Jeanette Eberle
October 16, 2012
Article Review
Introduction
Businesses, small or big, have to adapt to the changing environment. External and internal
influences, both consisting of the environment, may affect the firms performance. According to
the Case Application: Saving the World, Symantec, a netw
1
11
2
3
A)
B)
D)
Altoona
A)
B) Smithson Corp
C)
A)
B)
C)
D)
E)
A)
B)
C)
D)
E)
4
A)
5 A)
B)
C)
pv
$(1,152.12)
$(819.76)
$(1,383.50)
$(1,513.68)
$(653.28)
pv
1152.12
819.76
1383.5
1513.68
653.28
pv
$(656.82)
$(659.46)
$(727.84)
pv
$(1,147.20)
$(773.99)
$(1
DuPont analysis is the broadest ratio analysis technique. The positive thing relies in the ability it
has to isolate problems. It sets an equation:
ROE = (Net profit margin) * (Asset Turnover) * (Equity multiplier)
This equation measures the operating eff
DuPont Analysis
Abby Ordonez
DuPont analysis is the broadest ratio analysis technique. The positive thing relies in the
ability it has to isolate problems.
It sets an equation:
ROE = (Net profit margin) * (Asset Turnover) * (Equity multiplier)
This equati
ROS: growing significantly until 2009 where it experienced a decrease of 7%. Then it is slowly recovering and experiences a short term growth in 2011 and is now again dropping. (OPERATION COSTS ARE GROWIN, TAKES MORE SALES TO PRODUCE SAME AMOUNT OF PROFIT
Principles of Finance
Abby Ordonez
Check-in
Duties and Expectations
Principles of Finance will be the introductory course to the finance sector which is employed in
all the multiple branches of business. It will be requested to read ahead of time and to s
EFFICIENCY ANALYSISAbby Ordonez
The cash conversion cycle is the most effective mean of breaking down the efficiency
ratios and analyzing more in depth the operations segment in the cash flow statement. In other
words, it analyzes how effective the credit