CF1 Study guides, Class notes & Summaries

Default Risk - Answer- Risk that a borrower will not make promised payments Liquidity Risk - Answer- Risk of recieving less than fair value for an investment if it must be sold for cash quickly Required Interest Rate on A Security - Answer- = Nominal Interest Rate + Default Risk Premium + Liquidity Premium + Maturity Risk Premium Real Risk Free Rate / Nominal Risk Free Rate - Answer- - Single period interest rate for a completely risk-free security with no inflation added - Nomina...

1. A project has an initial cost of $40,000, expected net cash inflows of $9,000 per *NPV*= -$40,000 + $9,000[(1/I) - (1/(I × (1 + I)N)] = -$40,000 + $9,000[(1/0.11) - (1/(0.11 × (1 + year for 7 years, and a cost 0.11)7)] of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) What is the project's IRR? What is the project's MIRR? What is the project's PI? What is the project's pay- back period? What is the project's dis- counted payback period? ...

FIN3701 Assignment 1 Semester 2 2022.QUESTION 1 Kaufold Ltd, a large manufacturer of aircraft components, has a capital budget of R2 000 000 and is evaluating the replacement of its existing machine with the more sophisticated model. The CFO determined the initial investment required and the terminal cash flow associated with the replacement to be R1 666 000 and R254 000 respectively. Both the usable life of the proposed and the remaining life of the current machine are 5 years. Expect...

FIN3701-EXAM MEMOS UPDATED. Suggested Solutions: May/June 2019 QUESTION 1 (20 MARKS) 1.1) Initial Investment Outlay for new machine Existing Machine New Machine Book Value = (-((/5) *4) =70 000 Loss = SP – BV = (R70 000 – R70 000) = 0 Tax Benefit = (0 X 0.28) = 0 Installed Cost = R750 000 Net Working Capital = 7000 Initial Investment Installed Cost of proposed machine Cost of proposed machine + Installation Costs Total installed cost – New Machine (Depreciable Value) (R75...

Annuities - Answers-Earlier money is worth more -Year 6 vs. year 9 (accept year 6) -Twin example: If one twin begins to invest at age 25, and the other begins to invest at age 30, who's money will be worth more? Age 25 -An annuity that starts today rather than the end of the month is worth more What is the main goal of financial management? - Answers--Increase shareholder wealth -Increase stock value Which of these will increase PV? - Answers-Interest rates go down/interest rates decr...

FIN2601 Financial Management EXAM PACK 2022. Question Answer Explanation 1 4 It is where short-term debt securities are bought and sold 2 3 Unlimited Liability 3 1 Maximizing shareholder wealth 4 3 Different objectives and ownership and control in different hands 5 3 ���������� ൌ ��� � ൌ 75000 0.08 ൌ 6 1 P/Y=1 N = 30*1 PV = 85 000 PMT = -8 273 I/Y = ? 8.99% 7 3 P/Y=1 I/Y =9 PV = 12 000 PMT = -1 500 N = ? 14.77 years 8 3 0 CF0 300 CF1 300 CF...

1 BROOKS BIOLOGICAL PRINCIPLES EXAM 2 | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Cytology Correct Answer: the study of cells Cell Theory Correct Answer: all living things are composed of cells and come from living cells Robert Hooke Correct Answer: one of the first to use microscope, observing a piece of cork from the stem of plants, where he found chambers arising in the idea of a cell. Light Microscope Correct Answer: takes pictures of large atoms. nucleus,...

BUSI 530 QUIZ 2 / BUSI530 QUIZ 2:LATEST-LIBERTY UNIVERSITY BUSI 530 QUIZ 2 Question 1 2 out of 2 points With respect to the notion that stock prices follow a random walk, several researchers have concluded that: Answer • Question 2 2 out of 2 points A fundamental analyst: Answer • Question 3 2 out of 2 points If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the st...

Ch13-22 + Chain reactions. Ch 13 - Measuring the performance in the economy, Ch 14- The monetary sector, Ch 15- The government sector, Ch 16- The Foreign sector, Ch 17- Simple Keynesian Model of the economy, Ch 18- Keynesian Model with government and foreign sector, Ch 19- More on macroeconomic theory and policy, Ch 20- Inflation, Ch 21 - Unemployment, poverty and inequality, Ch 22- Economic growth and business cycles, Chain reactions. Additional lectures (EECF1625), lecture 1- Keynesian Model o...

Chapter 01: The History and Interviewing Process Test Bank—Nursing MULTIPLE CHOICE 1. The primary objective of the initial encounter is to: a. define the advice and care for the patient. b. establish the tone of a successful partnership. c. optimize your ability to help. d. tell the patient the limits of care. ANS: B The first meeting with the patient sets the tone for a successful partnership. It is to discover the details about patients’ concerns, explore expectations for th...