Tutorial 7
Chapter 12:
Critical Thinking Questions: 12.1
Questions and Problems:
Basic: 12.3
Moderate: 12.14, 12.15, 12.16, 12.20, 12.23
Challenging: 12.25, 12.31
CTQ
12.1
You are involved in the planning process for a company that is expected to have
a l
Risk and Return
WEEK 3
Chapter 7
1
Risk and return
Future value vs. present value
The greater the risk, the larger the return
investors require as compensation for bearing
that risk.
Rate of return is what we earn from investment
stated in percentage te
Bond and Share Valuation
Week 4
Chapter 8 & 9
1
Capital market efficiency
Markets exhibit informational efficiency if market prices
reflect all relevant information about securities at a
particular point in time
In an informationally efficient market, m
Cash Flows and Capital
Budgeting
WEEK 6
Chapter 11
1
Calculating project cash flows
The Importance of capital budgeting
In capital budgeting, we estimate the NPV of the cash
flows that a project is expected to produce in the
future
All of the cash flow
The fundamentals of capital
budgeting
WEEK 5
Chapter 10
1
Introduction to capital budgeting
The importance of capital budgeting
Capital budgeting decisions are the most important
investment decisions made by management.
The goal of these decisions is to
Options
WEEK 11
Chapter 20
1
Financial options
A financial option is a derivative security in that its
value is derived from the value of another asset.
The owner of a financial option has the right, but not
the obligation, to buy or sell an asset on or
International Financial
Management
WEEK 12
Chapter 21
1
Introduction to international
financial management
Globalisation refers to the removal of barriers to
free trade and the closer integration of national
economies.
Consumers in many countries buy go
Time Value of Money
Fundamentals
WEEK 2
Chapter 5 & 6
1
Time value of money
Consuming today or tomorrow
TVM is based on the belief that people prefer to
consume goods today rather than wait to
consume similar goods tomorrow
Positive time preference
Mone
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EXAMINATION DET
Introduction to financial
management
WEEK 1
Chapter 1 & 2
1
Expectations
Attend all classes with copies of slides.
Read the text book.
Attend all tutorials and participate.
Complete the weekly quizzes and assignment.
If you are struggling
Attend con
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SESSION 1 FORMAL EXAMINATIONS JUNE 2015
EXAMINATION DETAILS:
Unit Code:
Tutorial 5: The Fundamentals of Capital Budgeting
Chapter 10:
Critical thinking question: 10.5, 10.8
Questions and problems: 10.8, 10.13, 10.14, 10.32, 10.35
CTQ
10.5
a.
A company takes on a project that would earn a return of 12
percent. If the appropria
Tutorial 4: Bond and Share Valuation
Chapter 8:
Critical thinking question: 8.2, 8.6
Questions and problems: 8.3, 8.26, 8.29
Chapter 9:
Questions and problems: 9.2, 9.7, 9.8, 9.18, 9.29
CTQ
8.2
Describe the informational differences that separate the thre
Week 3: Risk and Returns
Chapter 7:
Questions and problems: 7.6, 7.7, 7.12, 7.17, 7.19, 7.20, 7.25, 7.27, 7.32, 7.33
7.6
Describe how investing in more than one asset can reduce risk through
diversification.
An investor can reduce the risk of his or her i
Tutorial 2: Time Value of Money Fundamentals
Chapter 5:
Questions and problems: 5.7, 5.12, 5.15, 5.32, 5.35
Chapter 6:
Questions and problems: 6.7, 6.13, 6.14, 6.18, 6.23, 6.25, 6.33
5.7
Multiple compounding periods: Find the future value of an investment
Revision
WEEK 13
1
Holding period returns (HPR)
Total holding period return is simply
P+CF1
P CF1
RT = RCA +RI =
.
P0
P0
P0
Example: You purchased a share at $20 one year ago.
After you received $1 dividend, you sold the share at a
price of $24. What is
CF
n
1 i
1
i
n
1 i
1
CF
i
FVFactor 1
CF
i
CF FVAnnuityF actor
Summary of Key Equations
FVAn
Chapter 2
6.2
Equation
Description
Fisher equation
i = r + Pe+ rPe
2.2
Fisher equation simplified
6.3
Present value of a perpetuity
Formula
2.1
Future value of an
Week 12
Chapter 21
Critical Thinking questions: 21.4, 21.5, 21.6, 21.8
Questions and Problems:
Basic: 21.1, 21.2, 21.5, 21.6, 21.7, 21.11, 21.15
Moderate: 21.19, 21.21
CTQ
21.4
A Canadian cooperative of wheat farmers sold wheat to a grain company in Russi
Lecture Week 10: Capital structure, management and payout policy
Chapter 15: 15.3, 15.4
Chapter 16: 16.5, 16.8, 16.17, 16.28
Chapter 17: 17.7, 17.12, 17.13, 17.14
15.3
Venture capital: What are some viable exit strategies for a start-up
company?
A company
Lecture Week 11: Options
Critical Thinking Questions (CTQ): 20.3, 20.6
Questions and Problems:
Basic: 20.3, 20.4, 20.5, 20.6, 20.7, 20.8, 20.9, 20.14
Moderate: 20.19
CTQ 20.3
An American option will never be worth less than a European option. Evaluate
thi
Cash Flows and Capital
Budge3ng
WEEK 3
Chapter 11
1
Capital budgeting method-recap
NPV: net present value
Calcula'ng procedure
Es'mate future cash ows
Determine the investors cost of capital or required rate of return
Calculate the present
Week 10: Cost of Capital
Chapter 13
Critical Thinking Questions: 13.9
Questions and Problems
BASIC: 13.8, 13.10, 13.13
MODERATE: 13.17, 13.23, 13.24 (assume a pre-tax cost of debt of 4.84%)
CHALLENGING: 13.29, 13.34
Critical Thinking Questions
13.9 Your m
Time Value of Money
Fundamentals
WEEK 2
Chapter 5 & 6
1
Time value of money
Consuming today or tomorrow
TVM is based on the belief that people prefer to
consume goods today rather than wait to
consume similar goods tomorrow
Positive time preference
Mone
Evaluate Project Economics
and Capital Rationing
Week 8
Chapter 12
1
Variable costs, fixed costs,
and project risk
Definitions
Variable costs (VC) are costs that vary directly
with the number of units sold.
Fixed costs (FC), in contrast, do not vary wit
The fundamentals of capital
budgeting
WEEK 5
Chapter 10
1
Introduction to capital budgeting
The importance of capital budgeting
Capital budgeting decisions are the most important
investment decisions made by the management.
The goal of these decisions i
Cash Flows and Capital
Budgeting
WEEK 7
Chapter 11
1
Calculating project cash flows
The Importance of capital budgeting
In capital budgeting, we estimate the NPV of the cash
flows that a project is expected to produce in the
future
All of the cash flow
Risk and Return
WEEK 3
Chapter 7
1
Risk and return
Future value vs. present value
The greater the risk, the larger the return
investors require as compensation for bearing
that risk.
Rate of return is what we earn from investment
stated in percentage te
Student Name:
Student Number:
Career Development Program
ACCG 315
Skills Assessment Activity Book
Instructions:
1. This Activity Book is to be used in conjunction with the content
available in the Career Development module on the ACCG315 iLearn
web page.
Cash Flows and Capital
Budge3ng
Chapter 11
1
Capital budgeting method-recap
NPV: net present value
Calcula'ng procedure
Es'mate future cash ows
Determine the investors cost of capital or required rate of return
Calculate the present value of
Risk and return
Chapter 7
1
Risk and return
Future value vs. present value
The greater the risk, the larger the return
investors require as compensa6on for bearing
that risk.
Rate of return is what we earn from investment
stated in percentage
1/08/2016
ACCG 315
Accountants in the Profession
ACCG315
Accountants in the Profession
Unit Coordinator:
Associate Professor Dr. Rahat Munir
Department of Accounting and Corporate Governance
rahat.munir@mq.edu.au
Teaching Assistant
Cissy Zhan
Department o
Tutorial 2: Time Value of Money Fundamentals
Chapter 5:
Questions and problems: 5.7, 5.12, 5.15, 5.32, 5.35
Chapter 6:
Questions and problems: 6.7, 6.13, 6.14, 6.18, 6.23, 6.25, 6.33
5.7
Multiple compounding periods: Find the future value of an investment