Part 3 Financial securities Notes
What is a financial security?
What are the two common types of securities?
Chapter 6 Valuation of Bonds
Bond terminologies: par value, maturity, coupon/coupon rate, payment frequency, yi
Time Value of Money Notes
Chapter 2 Time Value of Money basics
Discounting and Compounding for single cash flow and multiple cash flows
Nominal interest rate, real interest rate and inflation
Chapter 3 Time Value of Money advanced
Step 1. Find accumulated depreciation = 5300 + 4400 = 9700
Step 2. Using the information given to construct a Balance Sheet for year 2012. Cash is the account to
balance out both sides of the balance sheet. Cash = 74900-66600 = 8300
Financial Calculator Texas Instruments BA II Plus notes
Set decimal places: [2ND], [.], , [ENTER]
Set frequency of payment=1: [2nd], [I/Y], , [Enter]
Set payment occur at the end of period:
[2nd], [PMT]. If BGN appears, then press [2nd],
I made the decision to get tattoos while I was active duty in the military. Not knowing what I
wanted to do outside the military at the time, my decision was simple to obtain tattoos.
During my last year in service, I made the decision to j
Chapter 1 Introduction to Corporate Finance Notes
3 decisions in a corporation
Who is the owner of a corporation?
What is the goal of a corporation?
What is an agency issue in a corporation?
Please draw a graph to il
Chapter 7 Homework
1. Even though most corporate bonds in the United States make coupon payments semiannually,
bonds issued elsewhere often have annual coupon payments. Suppose a German company
issues a bond with a par value of 1,000, 15 years to maturity
Chapter 9 Homework
1. What is the payback period for the following set of cash flows? (Round your answer to 2
decimal places, e.g., 32.16.)
To calculate the
Chapter 8 Homework
1. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.55 per share on its stock. The
dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors
require a return of 14 percent on the compan
Chapter 5 Quiz 100%
1. Interest earned on both the initial principal and the interest reinvested from prior periods is called:
Interest on interest.
2. Renee invested $2,000 six years ago a
Chapter 8 Quiz
1. Which one of the following types of stock is defined by the fact that it receives no preferential
treatment in respect to either dividends or bankruptcy proceedings?
2. What are the distributions of either cash or stock to shareh
Chapter 2 Quiz 100%
1. Which one of the following is the financial statement that shows the accounting value of a
firm's equity as of a particular date?
Statement of cash flows.
Award: 10 out of 10.00 points
If the discount rate is 9 percent, what is the present value of these c
Chapter 1 Quiz 120/140 Points85.71
1. A business owned by a solitary individual who has unlimited liability for its debt is called a
2. A business partner whose potential financial loss in the partnership will not exceed his or her in
Chapter 3 Quiz 100%
1. The sources and uses of cash over a stated period of time are reflected on the:
Tax reconciliation statement.
Statement of cash flows.
Statement of operating position.
2. Which one of the following i
Chapter 9 Quiz
A project has an initial cost of $27,400 and a market value of $32,600. What is the difference between
these two values called?
Net present value.
Which one of the fol
Chapter 6 Quiz 100%
Which one of the following terms is used to describe a loan that calls for periodic interest payments and a
lump sum principal payment?
Pure discount loan.
Chapter 7 Quiz
A bond's coupon rate is equal to the annual interest divided by which one of the following?Face value.
The bond principal is repaid on which one of these dates? Maturity date.
The items included in an indenture that limit certain actions of
Why do Proforma?
Evaluate alternative business strategies
Identify profit and funding effects of alternative
Explicit measurement of risk
Identify the amount of funds needed and
appropriate structure for the funding
Case Study Two
You have been working in the human resources department for a large
convention hotel in Dallas, Texas. Ramon, one of the bell staff associates, comes
into your office loudly complaining that he didnt get his annual wage increase as
he was p
Gross Fixed Asset
Net Fixed Asset
In FY 2006, the co. sold a Fixed Asset with original cost 46,000 and was fully depreciated
Describe the units of measurement used for pressure, and change from one
unit to another.
Use the pressurevolume relationship (Boyles law) to determine the new
pressure or volume when the temperature and amount of gas are constant.
Practice Worksheet 5
1. Zachary is considering buying a bond issued by CSD that pays coupon interest semi-annually, has 17 years
remaining to maturity, and has a coupon rate of 6.00%. If the bond sells for $990.00, then yield-to-maturity is _
%. Assume a
Practice Worksheet 7
Use the following to answer the following questions.
Frozen Enterprises wants to expand its business by selling ice coffee in addition to ice tea. The
CFO of Frozen Enterprises is provided with the following information on the new pro