...Prof. Dr. Rainer Stachuletz Corporate Fincance and Investment Policy ballou@zedat.fu-berlin.de Case 2 Chapter 3 The Concept of Present Value The Casino.com Corporation Present Value Casino.com Corporation is building a $25 million office building in Las Vegas and is financing the construction at an 80 percent loan-to-value ratio, where the loan is in the amount of $20,000,000. This loan has a ten-year maturity, calls for monthly payments, and is contracted at an interest rate of 8 percent. Assignment Using the above information, answer the following questions. 1. What is the monthly payment? 2. How much of the first payment is interest? 3. How much of the first payment is principal? 4. How much will Casino.com Corporation owe on this loan after making monthly payments for three years (the amount owed immediately after the thirty-sixth payment)? 5. Should this loan be refinanced after three years with a new seven-year 7 percent loan, if the cost to refinance is $250,000? To make this decision, calculate the new loan payments and then the present value of the difference in the loan payments. 6. Returning to the original ten-year 8 percent loan, how much is the loan payment if these payments are scheduled for quarterly rather than monthly payments? 7. For this loan with quarterly payments, how much will Casino.com Corporation owe on this loan after making quarterly payments for three years (the amount owed immediately after the...
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...Solutions to Problems and Exercises Table of Contents Chapter 1 5 CA 1-4 5 CA 1-6 5 CA 1-8 6 CA 1-10 7 CA 1-12 8 CA 1-17 9 Chapter 2 10 CE2-2 10 CE2-3 10 EXERCISE 2-2 11 EXERCISE 2-3 12 EXERCISE 2-4 13 CA 2-4 13 Chapter 3 15 EXERCISE 3-6 15 EXERCISE 3-10 16 EXERCISE 3-13 19 EXERCISE 3-15 19 EXERCISE 3-20 20 Chapter 4 22 PROBLEM 4-1 22 PROBLEM 4-3 25 PROBLEM 4-5 27 PROBLEM 4-7 29 Chapter 5 31 PROBLEM 5-2 31 PROBLEM 5-4 34 Chapter 6 37 EXERCISE 6-3 37 EXERCISE 6-6 38 Chapter 7 39 PROBLEM 7-2 39 PROBLEM 7-4 41 PROBLEM 7-9 43 PROBLEM 7-11 46 EXERCISE 7-25 48 EXERCISE 7-26 50 Chapter 8 52 EXERCISE 8-23 52 EXERCISE 8-25 53 PROBLEM 8-5 55 PROBLEM 8-11 59 Chapter 9 62 PROBLEM 9-1 62 EXERCISE 9-7 64 EXERCISE 9-9 66 PROBLEM 9-4 67 PROBLEM 9-6 68 Chapter 17 70 EXERCISE 17-6 70 Chapter 18 71 PROBLEM 18-1 71 PROBLEM 18-4 74 PROBLEM 18-6 76 PROBLEM 18-7 79 PROBLEM 18-8 81 EXERCISE 18-20 82 EXERCISE 18-21 82 Chapter 22 84 EXERCISE 22-2 84 EXERCISE 22-8 84 EXERCISE 22-11 84 Chapter 23 86 EXERCISE 23-11 86 EXERCISE 23-13 88 EXERCISE 23-15 90 Chapter 1 CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial...
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...Why I want to learn about medicine I have always known I wanted to work in medicine, ever since I was a child. I have worked as a Medical Assistant in orthopedics and gained several more certifications for almost eight years and enjoy every bit of it. I want to advance my knowledge and certifications so I can learn more and do more. I feel that the intricate detail of our body is all mechanics’, there is power in knowledge and I need to know it all. How is our body made and why does it work is truly what I’m interested in. My goal is to educate myself little by little to build up to being a RN-FLA, this will allow me to work for myself at some point and build my own schedule. Education can be scary, in the sense of traveling to the unknown. I find that I am a traveler with my learning. I need to go see it all, a nosey little busy body that looks and touches everything. Peer through every window of opportunity, if I don’t know or understand when it comes to medicine or education I am the first to ask. There is so much out there to learn, see and do, I can’t help but want to adventure it. I work in a field that is always changing with our fast paced society. Without new knowledge and advanced mechanics’ you as a medical provider or support staff will find that your patient will no longer trust your advice. Being said, I am a traveler, I need to have the knowledge and will search out the proper answers needed. Medicine needs to be given 100% otherwise lives can be at...
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...My community is majorly comprised of sugarcane farming, animal keeping, maize farming and all other food crops such as sorghum, sweet potatoes, cassava among others. This is majorly because it is situated next to a very prosperous sugar company called SOUTH NYANZA SUGAR COMPANY (SONY). This makes sugarcane farming a major source of income. The THREE major challenges that are facing my community and has greatly hindered its proper development are as follows:- 1) Lack of infrastructure such as roads, electricity and water: this is the main challenge that we face in my community. The murram roads leading to my community are in poor conditions and become really muddy during rainy seasons and very dusty during the hot dry spells. This greatly hinders easy transportation of people and goods in and out of the community. Being that the roads are not tarmacked, the heavy-duty tractors that aid in the transportation of sugarcane to the factory contribute a lot in the increased destruction making them more bumpy and the transport very hectic. Lack of electricity is another catastrophe that affects my community a lot. Electrification is quite expensive and this is something that most people living in my community cannot achieve because of the poor living conditions and the meager income that they get from selling their farm products and working on the company’s sugarcane plantations. Therefore, electricity is very sparse and only the few who have the capability are able to use it in their...
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...Question 1: Why should you be selected for learn abroad program at the University of your choice? Present three reasons to support your answer. (max. 500 words) Firstly, I think I should be chosen for the program of my choice which is the Stanford summer International Honors Program 2018 because I want to use this opportunity to grow into a better person, work on areas that I lack in and improve myself as a person. I want to this because I believe that there is always room for improvement. I want to enhance my confidence and communication skills. I have lived in Karachi all my life therefore I also want to use this opportunity to experience living independently since I have never had the chance to travel or live alone. The second reason why...
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...Wow! I am in 6th grade and a great learner. I believe that I am a kinesthetic learner. Three reasons that I believe that I am a kinesthetic learner a Wow! I am in sixth grade and I have a really super interesting life. In this essay, you will learn more than you ever knew about me. First, you will learn about my characteristics, hobbies, and things I love to do for fun. Then, you will learn about what kind of learner I am. After, you will learn about my goals for sixth grade. This is all the things that you are going to learn about me in this paragraph. First of all, I am a very interesting person and I like doing a lot of things. First, I like to watch TV, run, swim, and hike during my free time. I like doing these things...
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...is crucial to have goals that you want to accomplish. Goal setting is an ideal way to learn new skills and knowledge. The skills you learn at an internship will help you prepare for your future career. Setting goals for yourself to achieve in an internship, as well as life, will ultimately dictate who you are, what you are doing, where you are going, and finally where you’ll end. Hopefully where you end is the goal. If not, that’s fine, as long as you worked hard towards achieving the goal and learned from what you did do. The point of setting a goal is to achieve a desired result, and work as hard as you have to, to achieve it. By doing this at your internship you will grow as a person and learn things you usually will not learn in a classroom setting. In my current internship my goal is to learn more about the “Real World.” I am an accounting major and I have spent most of my time learning about accounting from a desk. In the classroom most of what we discuss is conceptual, it is not real, but often what is referenced could be. From my internship I hope to take what I have learned and apply it to a real scenario. I want the “Real World” to be a real thing, not a distant concept. By bringing the “Real World” to real life my goal is to learn new skills and business practices. I want to learn what it is like to be an account from day to day. I want to know if it is really something I want to do for the next 30 plus years. I want to see how real professionals conduct...
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...Sample paragraph (what do I expect to get out of this class) “Whoever teaches learns in the act of teaching, and whoever learns teaches in the act of learning” –Paulo Freire. English class is a great way to help learn and focus yourself into your career. It is a great learning opportunity to have in order to engage in about anything. It helps us underline life and sought after it. I expect to learn a lot from English class. I want to learn how to better my writing. For example I would like to better my grammar and have strong thesis statements. I want to become a better reader and seek out more knowledge from reading. I want to discover new fascinating books. I want to learn how to write essays that intrigue the reader and want them to read more. I want to learn how to think critically and how to express my ideas clearly. I would like to learn how to do research and learn about resources I never knew existed. Better yet, I would love to take this class and expect that I take all the knowledge I have learnt and pursue it into my career. As a nursing student English is a very key essential. It helps us with communication, learning how to write down care plans and helps with medication deliveries. The field of nursing requires a great deal of swift, accurate writing. I will need to fill out reports and charts correctly and completely. I will record interactions with doctors and patients fairly. In addition, I must always be prepared to defend the information I record. English class...
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...communication strengths? 4. Your communication weaknesses? 5. What you want to learn? My Communication Style From an infant I’ve learned how to communicate. We all communicate in different ways to achieve different results of feedback. I communicate in many different forms such as hand gestures, eye to eye contact, and nonverbal gestures with my eyes, such as raising an eyebrow or facial expressions. My tone or facial expressions show how I want to articulate my words. I communicate in different ways according to the receiver and the message I am trying to get across. From watching motivational speakers I imitate certain styles from them related to similar situations in my life. I am a very verbal person. I’m not afraid to express how I feel. I know how to adapt to different conversational situations. I hear what I want to hear sometimes. I always have to get the last word in any conversation. I assume a person knows what I am talking about sometimes dealing with certain situations. I want to learn how to understand what exactly a person is trying to tell me. I want to learn how to not allow certain things people say to me to get under my skin. I want to learn what my fiancé is trying to tell me sometimes through certain gestures or unspoken words. I want to learn how to read between the lines when dealing with the opposite sex. I want to learn how to make sure a person understands me clearly and the message I am trying to get...
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...Psychology I would like to learn more about mental illnesses along with the causes and effects of them. I would like to learn more about serial killers and the mental illnesses some of the most notorious ones suffered from. I would like to learn how the brain of a serial killer works. I would like to learn also about obsessive compulsive disorders (OCD), since last year in psychology we just learned the basics. I would also like to learn the difference between a psychologist and a psychiatrist, and what’s needed for each to have a career in either one. I took this class because I love to learn how the human brain works in different types of people. It is very interesting to learn how someone can become a serial killer or become mentally ill. I would love to learn the difference in the thought process of a person with a mental illness and someone without. I also took this class because I am thinking about going to college for psychology and I want to make sure that this is really what I want. Basically, I am taking this class to see if something in the psychology field is something I want to make a career out of. Some traits that I have to make this a better class are that, I’m very open minded, a quick learner, and a hard worker. I am not just taking this class to get it out of the way, I am taking this class because I have developed a strong interest in psychology. My plans for AP psychology are to make sure I’m successful in this class and to do everything I can to be...
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...being the person that I want to be. It is a future for myself, my husband, and my children. I chose to go back to school, (at the age of 34) because I want more out of life. I want to be a better mother and wife, a better person in general. I want to be someone my children can look up too, and say I want to be like you mommy. I want a career! I chose to pursue Psychology as my career, because I have always had an interest in human behavior. I want to learn more about mental functions like memory, creativity, imagination, and so much more. One of the functions that intrigues me the most is brain function. I want to be able to understand why and how it functions the way that it does. I want to understand how one’s mind is different from the other. I want to understand how siblings who have the same biological parents. Can show signs of different mental and behavioral functions. How one child can show signs of anger and shyness? While the other one shows signs of A.D.H.D and mood swings. How can children be so opposite, but yet be so much alike. What intrigues them about each other? How can their social behavior be so different? Like one would show signs of aggression, and one show signs of shyness. I want to learn more about social behavior and what makes it stand out. I want to learn more about what causes aggression, altruism, scapegoating, and so much more. I want to understand how one is selfish, and why they choose to be. I want to understand how one’s...
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...and they learn in their own ways and at their own speed. There are several ways to teach a child. I want to use the philosophy Pragmatism with bodily/kinesthetic, interpersonal intelligence using Student-centered Learning curriculum. Also I will let my children know that I am their friend and they can come to me for anything. Pragmatists focus on the function of knowledge as an instrument for coming to reality and controlling it. This way is more hands on and interests the children a lot more because it is something that they want to learn rather then to be forced to learn. All teachers I feel need to be the child's friend and this way it tells the child I am not only your teacher I am your friend too. Doing these gains the child’s trust; a child needs to not only to have respect for the teacher, but also to trust the teacher. We as teachers need to keep in mind on how each child learns and if they are a slow learner they will need to be taught in a different way. If they are hands on learner they need hands on approach to the subject. Each child is different and with that in mind there are different teaching methods. Our jobs as teachers are to explore each child’s needs and to fulfill them to our best. Some teachers tend to get stuck in a rut of the same approach for everyone, and though in some circumstances it may be difficult, we need to keep in mind that there is no one set way when teaching a child and especially special needs which is the field I hope to...
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... * Responsible- for my actions as a teacher and my student that I am teaching * Compassionate- Listen to your students and understand them. They are not your little robots. They are people to and you are to help them on their journey. These are the thing I believe is how a teacher should act when she is anywhere. At all times we as teachers are looked upon by the community, parents, and students are the role model and need to act like a role model. It is important we act as we want our students to act. How student are expected to behave. * Students are expected to have manners- Students need to use kind words as simple as please, thank you, and you are welcome. * Responsible- Students are to be responsible for their actions toward me and others. * Understand- Students need to understand right from wrong. * Respect- Students will understand and be respectful to the adults at school and other students. * To have a want- I expect my student to have want to learn and be there at school. If they do not want to be there it will be a fight from the beginning. This how I expect my students to enter my class. I do know that not all students know what some of these words are and what they mean. But, within the first couple days of class they will be taught so they do understand what they mean. An what I expect from them for the rest of the school year. This is how I expect my students to...
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...Studio I honestly don’t really know where to begin with this essay because I have so much to say. I guess I should start by saying that theatre is and has been the biggest and most influential force in my life. Growing up, my parents were determined I was destined to be an athlete. Although at age 4 I was writing my own plays and having each part played by a specific person in my family, they insisted on sports. They put me in every sport they could think of. They were athletes themselves and thrived teaching their kids how to throw a softball or how to serve a volleyball. I went along and played five sports a year until I was ten years old. When I was ten, I got cast as the Wicked Witch of the West in our school play, the Wizard of Oz. If I do say so myself, I stole the show. The feeling of being onstage and performing to ten year old me was just enchanting and I knew it was something I would never be able to let go. I haven’t let it go since to my parent’s dismay. Acting is the most important thing in my life and no matter what I always want to be in rehearsal or in acting class or performing. I think that the Studio program at West Virginia University would be a great place for me because it will help me reach my goals within the university and beyond. One reason I would love to be a part of the studio program is my constant desire for knowledge. As I said before, theatre is the biggest part of my life and my passion for it grows the more I learn. I want to learn everything...
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...physician assisted suicide in the news. I didn’t know that pharmacist had the option not fill a medication. If a pharmacist cannot fill a certain drug an unbiased mind, they should not be forced to do it, it would only harm the patient. That being said, one cannot leave the patient without the medication, so they need to find an alternative pharmacist to fill it. The clause allows patients to receive the best most unbiased medical care possible. 10/23- Dr. Feinburg spoke about cases where federal and state laws differ from each other. In those situations the more stringent law applies. In the case where no state law are in place, the federal law applies. This makes sense, though there is the problem of judging which law is stricter. This is really important to keep in mind because I am in New York, which is known to have stricter laws compared to federal law. The reason this interested me was because I always wondered which laws took precedence....
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