...- ROE = Net IncomeEquity Chapter 10 - Project Cash Flows = Project Operating Cash Flow – Project Additions to NWC – Project Capital Spending - Operating CFs = EBIT + Depreciation – Taxes - Operating CF’s = Project operating CF’s - S = Sales, C = Operating Costs, D = Depreciation, Tc = Corporate Tax Rate - EBIT = S – C – D - Taxes = EBIT x Tc = S – C – D x Tc - OCF = EBIT + D – Taxes = (S – C – D) + D – (S – C – D) x Tc - Project Net Income = EBIT – Taxes = (S – C – D) – (S – C – D) x Tc = (S – C – D) x (1 – Tc) - Bottom Up Approach = OCF = (S – C – D) + D – (S – C – D) x Tc = (S – C – D) x (1 – Tc) + D - Top Down Approach = OCF = (S – C – D) + D – (S – C – D) x Tc = (S –C) – (S – C – D) x Tc = Sales – Costs – Taxes - Tax-Shield Approach = OCF = (S – C – D) + D – (S – C – D) x Tc = (S – C) x (1 – Tc) + D x Tc - Depreciation (CCA) Tax Shield = D x Tc - PVCCATS: C = Total Capital Investment in the Asset which is added to the pool, D = CCA rate for the Asset Class, T = Company’s Marginal Tax Rate, r = Discount Rate, S = Salvage Value, N = Asset life in years, PVCCATS = CDTD+r x 1+0.5r1+r - SDTD+r x 1(1+r)n - NPV = Calculator Initial Investments and Cash Flows then Add PVCCATS Chapter 14 - Cost of Equity = RE = D0x (1+g)P0 + g - Dividend Growth Model Approach: P0 = D0x (1+g)RE-g = = D1RE-g - RE = D1P0 + g - First do D1 = D0 x (1 + g) then RE = D1P0 + g - To find g, you can compound growth rate (Geometric Mean) by: Dyear 1 (1 + g) year5 = Dyears , or g = Retention...
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... Cheating: * Any attempt to give or obtain assistance in a formal academic exercise (like an examination) without due acknowledgment. * dishonesty and breaking the rules. Reasons of cheating 1. Performance concerns * Need to excel at any cost 2. External pressures * Academic * Semester workload too heavy * Others’ cheating puts me at disadvantage * Professor/text did not adequately explain material * Too many tests on one day * Nonacademic * Pressure from parents * Job leaves no time for study * Illness prevents adequate preparation * GPA for athletic qualification * Financial aid depends on GPA * Good grades needed for job or graduate school 3. Unfair professors * Overly harsh grading * Unfair tests designed to fail students * Unreasonable workload in course 4. Lack of effort * Did not attend class * Did not study, do reading, etc. 5. Adherence to other loyalties * Helping a friend * Loyalty to a group (fraternity) 6. All’s fair in love and academia 7. Opportunity * Unexpected opportunity arose * Instructor left room during exam * Instructor wasn’t watching carefully * Other students didn’t cover their paper 8. Campus ethos * Others do it * No one ever really gets punished/caught Some ways of cheating 1. Copying Homework ...
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...T B EO C N E T : AL F O TN S Peae rfc A o th po rm b u te rga G n rl d i o pe aainpoes e ea a v e n rp rt c o rcs C Al e1 xm -h b gn ig f ln ra F e l ea te einn o a o g o d v C Al e2 xm - a w y h r F e l ea h l a tee v f C Al e3 xm -h l t l F e l ea tea mi v s e O h r sflno te ueu if Tp fr a dd ts iso cn iae Atr od f wr e 1 4 1 0 2 2 5 5 6 6 7 1 8 9 9 7 Guide for the CFA exam by TimePrep PREFACE Welcome to the world of the CFA program! Since you're reading this, it is likely that you are a CFA candidate, or you are considering becoming one. Either way, we hope that you will find this book helpful. The general idea behind this book is to offer CFA candidates useful advice, written by other CFA candidates and charter holders. There are several segments of the book and we recommend going through them all since it is not a heavy read, and it may prove useful for your preparation. The book starts with general information about the CFA program – the basics of the program, benefits of attending it, the complexity of the program in whole etc. In the second chapter we will provide you with some general advice in preparation – how to organize your time, what strategy elements to use, how to find time for studying and also an overview of the various prep tools that can help you. The following three chapters of the book are each related to one of the levels of the CFA Exam – here you can read various useful information regarding study materials, types of questions that appear...
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...Warning, this is a study guide, not a cheat sheet. 1. Prepare a statement showing the incremental cash flows for this project over an 8-year period. -Initial investment: The initial investment (I) is the sum of the investment in plant and equipment. I = $1,000,000 -Working Capital: The additional net investment in inventory and receivables is the working capital needed for the project: WC = $200,000 There is no additional info about the WC, so we can assume that it will not change over the project's life. Then Working Capital Change for each year Yi is: this is a study guide, not a cheat sheet. ChWCi = Previous Year WC - Current WC = 0 (for i=1 to 7) and ChWC0 = -$200,000 The working capital is recovered, this means that for the end of the year 8 it will be zero or: this is a study guide, not a cheat sheet. ChWC8 = $200,000 -Depreciation: For the first five years Yi (i = 1 to 5): Di = (Invest in plant and equipment)/5 = $1,000,000/5 = $200,000 For the years 6 to 8 the depreciation will be zero. this is a study guide, not a cheat sheet. -Revenues: For the first year the expected revenues will be: R1 = $950,000 For the years Yi (i=2 to 8): Ri = $1,500,000 -Expenses: Indirect incremental costs will be $80,000 all the eight years. For each year the direct costs will be 0.55*Ri. Then for each year Yi (i=1 to 8), the expenses (Ei) will be: this is a study guide, not a cheat sheet. Ei = $80,000 + 0.55*Ri, Then: ...
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...1.a. www.WHATIS.COM is an IT encyclopedia and learning center with the following types of information: “Cheat sheets” – documents/sites that provide glossaries, descriptions, tutorials, links, and information related to information technology, information security and MS office programs. Learning Guides - educational tools related to the information technology workplace. Examples of available tutorials include Three approaches to hybrid cloud technology, A beginner’s guide to virtualisation, and supplier profiles (e.g. Oracle, Dell, Symantec) Quizzes – covering information technology niche areas or basic terminology Technology-Specific Sites – includes IT related search sites and index of IT related topics Definitions – Information technology related definitions with associated descriptions and explanations File Extensions – alphabetical list of known file extensions with short explanations There are links to topics covering financial accounting, financial applications, definitions, and tutorials. (http://searchfinancialapplications.techtarget.com/resources) as they relate to information technology. This is a valuable resource for those looking for information on specific financial definitions or programs. 1.b. Accounting Information System (AIS), Executive information systems, Neural networks: A system of programs and data structures that are the information technology equivalent of a brain. Includes many processors. (http://searchnetworking.techtarget.com/definition/neural-network)...
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...University of Notre Dame Mendoza College of Business Department of Finance FIN 70500 – Multinational Financial Management Module 1, Fall, 2006 |Instructor: |Jerry G. Langley |Phone: |Office - (574) 631-6078 | | Office: |262 MCOB | |Home - (574) 234-1191 (before10PM) | |E-mail: |Jerry.Langley.3@nd.edu | | | | Office hours: I’m in my office most of the week, so stop by or call and set up a time to see me. | COURSE OBJECTIVES This course covers various aspects of the international side of finance, including organizational issues that impact the financial decision-making process. After an overview of the international financial environment companies operate in, we will learn how they organize themselves to do business internationally, the impact of volatile exchange rates and how they can be measured and managed to minimize effects on economic and reported results. In addition to looking at the theoretical underpinnings of international finance, we will also cover the practical side of financing decisions – how corporations actually use these tools to manage the potential impacts on their business that come from operating around the world. We’ll also...
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...Ratio Formula Cheat Sheet Prerequisite Formulas Used in the various ratio formulas below Measures the dollar amount of profit remaining after cost of goods sold and is used as the denominator in the Gross Margin calculation Used as the denominator in the Return on Assets calculation Used as the denominator in the Return on Equity calculation Used as the denominator in the Receivables Turnover calculation Used as the denominator in the Inventory Turnover calculation Profitability Ratio Formulas Used to measure how effective an organization is at generating profits Measures the percentage of each sales dollar remaining after cost of sales that contributes to funding the organization’s SG&A and other costs Measures the percentage of each sales dollar that remains after cost of goods sold and SG&A expenses Measures the percentage of each sales dollar that remains after all expenses Measures how effectively an organization uses its assets to generate profits Measures how effectively an organization uses the capital contributed by equity investors (excludes preferred stock) Measures the percentage of net income paid out as dividends Asset Utilization Ratio Formulas Used to measure the amount of time it takes or how efficiently assets are turned into cash Measures the number of times per year the balance of receivables is collected and shows how efficient an organization is in collections Measures the average number of days it takes from the time a sale is made until cash is collected...
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...The company had maintained a lean organization with basic functional. Encik Zayed hires mostly his family member although they have a low qualification. The company use MYOB system and manually produced sales document. The company pay salary weekly to the worker and the employee prepared the time card. The auditor have problem to complete the audit due to incomplete information and record. Cik Amy the new worker as the finance executive analyse the situation and try to help the auditor although the company have many problem. Problem Faced by Delima The Delima Enterprise Sdn Bhd had many problems such as lack of fund to start the contract in the 6 month duration. The company also have a serious management problem because Puan Hashimah and Encik Zayed have no knowledge in handling the company and they treated it like sole proprietor business. The company also doesn’t have Standard Operating Procedure (SOP) and the MYOB system is not integrated and cause them manually produce the sales documents. The employee also prepared their own time sheet which can cause fraud. The company is also unorganized with unrecorded asset and late payment from debtor. The company also doesn’t have project budget and no...
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...CAMPUS CONNECT JULY 2015 #CHIEF SPEAK Dear Friends, Airtel as an organization is living through its most exciting phase in recent times. The Airtel vision of “hunger to win customers for life” has unleashed so much excitement and passion amongst our 20,000+ employees in India, South Asia and Africa. Central to this vision is our pillar of ‘winning with people’, and we are looking at more and more ways to build a culture and capabilities that support high performance. The telecom industry is intensely dynamic and fiercely competitive, and as it continually evolves and becomes more complex, it is imperative for our people to get both ‘depth’ and ‘breadth’ of experience. What gives our people energy is the fact that they get to do jobs that have never been done before. Our Young Leaders, who join us right out of business schools like yours, are given surprisingly large amounts of responsibility. And to realize all the space and opportunity that we promise, we’re careful in planning their first 12 months to ensure exposure within and beyond their primary function, guidance, plenty of interactions with business heads, and lots of opportunities to assimilate culture, people, the organization and folklore! We’ve just seen a batch of bright B-school interns join us over the summer, some of whom will return to Airtel once they graduate. This edition of Campus Connect will give you a glimpse of their experiences. As we scale up to...
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...Professor Crocker H. Liu | Financial Management, Spring 2000 Tire City Case Frequently Asked Questions | | Note: What I'm trying to make you do is THINK! To read things carefully. To make judgements for yourself without your parents/teachers telling you what to do. This is an INDIVIDUAL project and therefore, anyone who cheats will be given an F in the course. Marine Corp. slogan: The weak quit when they experience pain, the strong quit only when the mission is accomplished. Hawaiian: ho'oikaika Collaborating with Others: * I would like to know if we can work on the case with another student to make things a bit easier and more productive, but still hand in separate copies. If you wish to discuss the case with another student that's fine. However, if you are "borrowing his spreadsheet" and modifying it slightly and/or "lifting his analysis" but putting it in your own words the answer is NO!! It's always easier to work in a group but there is too much free ridership. I HATE remoras (a tiny fish that gets a free ride and free eats but sticking to the belly of a shark). Also, you already know the grade you'll be getting if your report and spreadsheet resemble another student's. I don't make idle threats. In Class Example: * I was wondering whether you were going to post a completed version of the Financial Planning Spreadsheet on the net. As far as posting a completed version of the Financial Planning Spreadsheet on the net, it is already in your Financial...
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...Enron’s Communication and Leadership Training Program In the aftermath of Enron’s collapse, compelling questions have been raised about the cause of the Enron debacle. Actions and events that led to the company’s collapse are still being pieced together. Responsibility for the losses suffered by the investors has been laid to the company’s executive management, its board of directors, its auditors and the Securities and Exchange Commission (Foundation of Economic Development, 2002). In developing a training plan to increase the effectiveness of groups and teams, Team B constructed a plan that would have hopefully, helped Enron succeed instead of fail, through a discussion of the benefits and challenges of communication, collaboration and conflict management. The training program will show the group the benefits of developing strong communication skills as a foundation of being an effective leader as majority of them have significant roles in leadership and management. Effective communication occurs only when the intended receiver understands the exact information the sender is intending to transmit. The purpose of the Communication and Leadership training program will be to provide the management group at Enron an opportunity to fix many of their problems by developing their communication skills. Many of the problems in organizations are because of faulty communication. It leads to confusion and causes most great plans to fail. In the training program, trainees will understand...
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...|PREPARING THE COMPANY-WIDE MIGRATION TO WINDOWS 8 | |TIMOTHY BLOUNT | |PROF KEVIN JAYNE CIS 329 | |Internal | |Strengths |Weaknesses | |Storage Space |Touch screen interface | |Better Security |Difficult to move between screens | |Windows to Go |No antivirus for Windows 8 | |Faster boot time |Metro Multitasking | |Optimized for touch screen |Flash content on the tablet PC | | | | | ...
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...(Income statement) measures a company’s financial results after business operations and financing activities, and it is crucial for investors as this is the statement that determines if overall a business is profitable or not. But because most companies use the accrual accounting method (which I will not explain on this paper), the income statement may not reflect actual changes in cash position. This is why investors should not rely only on this statement to make decisions as should use it only as one “indicator” of revenues minus costs, but it does not give the whole picture of a company’s financial health. It is important for investors and management to analyze the four main financial statements as interrelated (Income Statement, Balance Sheet, Statement of Retained Earnings, and Cash Flows Statement) and the many ratios derived from these statements that show crucial indicators on a business’s financial position to make wise decisions. In the following pages I will summarize what a Statement of Cash Flows by citing information from different sources, then I will try to...
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...Schulich School of Business York University Course Outline FINE 2000T “Introduction to Finance” Class Day: Mondays & Wednesdays, 10:00-11:30 a.m. Room: SSB W136 Term: Winter, 2014 Instructor: Tony Mayadunne amayadunne@schulich.yorku.ca Room Office hours: Mondays & Wednesdays, 11:30 a.m. to 12:30 p.m., or by appointment. Brief Description: Students learn about investment and financing in this core course. The investment decision allocates scarce resources to projects in the organization, and involves asset valuation, capital budgeting, risk management, working capital management and performance assessment. The financing decision chooses sources of cash to finance the investment decisions and involves capital structure, financial instruments, the risk-return trade-off, financial planning and the cost of capital. Ethical considerations and management in the global context are integrated into these topics. Course Credit Exclusion: AP/ECON 3.00 (AS/ECON 4400 3.00 or AK/ECON 4082 3.00) Prerequisite: none Course objectives: The course objectives are to introduce students to the theory of financial management and its application to the business world. It analyzes how financial managers make decisions within a framework which emphasizes the time value of money (TVM) and the relationship between expected return and risk. In addition, we examine the techniques that financial managers use to evaluate feasibility of undertaking new projects (i...
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...Memo addressing core issues on topic of Ethics in Finance Winter 2011 Hsiu Chang Ethic is useful because it makes business stable and predicable. In a game, a cheater who is not caught will continue to reap huge rewards. However, if the trend continue, it will encourage other players to cheat or leave the game because they are being driven out of business. If a business operator always has to wonder if the other side is playing by the same rule, if a customer constantly wonder if the vendor is overcharging for the invoice, then business slow down, becomes inefficient. However, many cheaters are not caught or punished. "Business Ethics" is the third episode of the fifth season of the television series The Office. One of the female purchasing officer has been sleeping with a vendor in order to get discount for the entire purchasing department, and Outback Steakhouse coupons. When this is discovered, the head of the company turned a blind eye because it is good for the balance sheet (Wikipedia, 2011). Having good ethic provides a clear conscience, and if there was an ethical problem, shared the advantage gained by cheating with the entire team will once again clear the conscience. Ethic in finance is important because it will provide a clear picture of the company. The leader of the company cannot see where the company can go if they do not know where the company is. However, accountant in a non-public company works for the leader and this agents’ fiduciary duty...
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