Macro

Macro
macro ch 13 savings & investment
True/False
Indicate whether the statement is true or false.
____ 1. Most entrepreneurs finance their purchases of real capital using their past saving.
____ 2. To state that national saving is equal to investment, for a closed economy, is to state an
accounting identity.
____ 3. Public saving is equal to national saving minus private saving.
____ 4. To state that public saving is equal to investment, for a closed economy, is to state an
accounting identity.
____ 5. Suppose a small closed economy has GDP of $5 billion, consumption of $3 billion, and
government expenditures of $1 billion. Then investment and national saving are both $1 billion.
____ 6. The ratio of government debt to GDP ... Show more content on Helpwriting.net ...
The primary advantage of mutual funds is that they
a.|always make a return that "beats the market."|
b.|allow people with small amounts of money to diversify.|
c.|provide customers with a medium of exchange.|
d.|All of the above are correct.|
____ 18. According to the definitions of national saving and public saving, if Y, C, and G remained
the same, an increase in taxes would
a.|raise national saving and public saving.|
b.|raise national saving and raise public saving.|
c.|leave national saving and public saving unchanged.|
d.|leave national saving unchanged and raise public saving.|
____ 19. Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500,
consumption equals 7,000, and government purchases equal 3,000. What are private saving and
public saving?
a.|1,500 and –500, respectively|

b.|1,500 and 500, respectively|
c.|1,000 and –500, respectively|
d.|1,000 and 500, respectively|
____ 20. Suppose the economy is closed and consumption is 6,500, taxes are 1,500, and government
purchases are 2,000. If national saving amounts to 1,000, then what is GDP?
a.|9,500|
b.|10,000|
c.|10,500|
d.|None of the above is correct.|
____ 21. For an imaginary closed economy, T = $5,000; S = $11,000; C = $50,000; and the
government is running a budget deficit of $1,000. Then
a.|private saving = $10,000 and GDP = $54,000.|
b.|private saving = $10,000 and GDP = $58,000.|
c.|private saving = $12,000 and GDP
... Get more on HelpWriting.net ...

Similarities Of Theseus And James Bond In Current Day Movies
What does theseus and james bond have in common? Blockbusters like thor and shrek, may just
have the ability to be a myth. Current day movies frankly have myths flowing through them. Like
qualities of characters, and the similarities between the plot. Also The references that they make
within the story. If the ancient Greeks saw our current day movies, they would definitely call it a
myth! The qualities of characters in movies are extremely close. When you think of the antagonist,
what do you think of? Ugly, evil, chaotic, murderous? It seems like the greeks thought the same
thing! An example of this is the minotaur! He is evil and disgusting, he is like Loki in thor! The list
of examples just goes on and on! Greek myth characters have similar

Fin 571 Week 5
Chapter 17
Question B1
Bixton Company's new chief financial officer is evaluating Biston's capital structure. She is
concerned that the firm might be underleveraged, even though the firm has larger–than–average
research and development and foreign tax credits when compared to other firms in its industry. Her
staff prepared the industry comparison shown here.
Rating Category Fixed Charge Coverage Funds From Operations/Total Debt Long–Term
Debt/Capitalization
Aa 4.00–5.25x 60–80% 17–23%
A 3.00–4.30 45–65% 22–32%
Baa 1.95–3.40 35–55% 30–41%
A. Bixton's objective is to achieve a credit standing that falls, in the words of the chief financial
officer, "comfortably within the "A" range. What target range would you recommend for each of ...
Show more content on Helpwriting.net ...
Recommend a reasonable dividend policy for paying out discretionary cash flow in years 1 through
5.
The current dividend per share: $1.50 x 20 million shares = $30 million
Assessing the discretionary cash flow, there is a larger amount at the beginning. If the firm gradually
increases the dividend from $30 million to $50 million, with larger increases at the beginning, a
discretionary cash deficit can be avoided. Payouts would be as follows:
Y1 = $35 / 20 = $1.75
Y2 = $39 / 20 = $1.95
Y3 = $43 / 20 = $2.15
Y4 = $48 / 20 = $2.40
Y5 = $50 / 20 = $2.50
These amounts stay in line with the discretionary cash flow, $215, as stated above.
Chapter 20
Question A2
Stephens Security has two financing alternatives: (1) A publicly placed $50 million bond issue.
Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20–
year life. (2) A $50 million private placement with a large pension fund. Issuance costs are
$500,000, the bond has a 9.25% annual coupon, and the bond has a 20–year life. Which alternative

has the lower cost (annual percentage yield)?
According to the following calculations: Option 1 Option 2
Number of Periods (npr) 40 20
Coupon Payments (pmt) 2,250,000 4,625,000
Net Proceeds of Bond (PV) 49,000,000 49,500,000
Face Value of Bond (FV) 50,000,000 50,000,000
Yield to Maturity 4.61% Bond Equivalent Yield 9.43% 9.36%
Option 2 has the lower cost

capsim strategies
Team: Strategies
1. Broad Cost Leader
2. Broad Differentiator
3. Niche Cost Leader (Low Technology)
4. Niche Differentiator (High Technology)
5. Cost Leader with Product Lifecycle Focus
6. Differentiator with Product Lifecycle Focus
12.1 Broad Cost Leader
A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will
gain a competitive advantage by keeping R&D, production and material costs to a minimum,
enabling the company to compete on the basis of price, which will be below average. Automation
levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Low–priced products for the industry: Our brands offer solid value. Our stakeholders are ... Show
more content on Helpwriting.net ...
Automation levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Reliable products for low technology customers: Our brands offer value. Our stakeholders are
bondholders, stockholders, customers and management.
Tactics
Research & Development: We will concentrate our existing product line into the Low End and
Traditional segments. The traditional product will migrate to the Low End segment. The High
product will migrate to the Traditional segment. During the early years we will migrate (gradually)
our Performance and Size segment products to the Traditional segment. We can also introduce a new
product to work in the Traditional market.
Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our
competitors ' products. After we establish our cost leadership position we will revisit our situation to
decide whether sales and promotion budgets should be reduced or if we should continue to match
our competitors. Our prices will be lower than average.
Production: We will significantly increase automation levels on our products. However, because
automation sets limits upon our ability to reposition products with R&D, we will postpone
automation for the High End and Size products until they arrive in the Traditional Segment. We will

prefer second shift/overtime to capacity expansions.
Finance: We will Finance our investments primarily through long–term bond

Video Games Are Not Art By Roger Ebert
Do you like art? Do you like video games? Have you ever wondered if video games can ever be
recognized at art or a portrait? The article I have broken down and analyzed was an article called
"Video Games Are Not Art by Roger Ebert. He explains that videos games can never be art because
it is a disgrace tp professional artist out them to compare videos games with art that actually have
meaning behind each corner, idea, color, structure, design. For example, art is identified as the
expression or application of human creative skill and imagination, typically in a visual form such as
painting or sculpture, producing works to be appreciated primarily for their beauty or emotional
power. Videos are meant to be played and enjoyed not analyzed and broken down as a art piece or
never will nor it be. Overall, I think the argument presented in "Video games can never be art by
Roger Ebert is not partially effective on the target audience of people who believe in his opinion. As
we explore Ebert's argument's that video games can't be art, we will examine the strongest out of the
argument (Ethos), followed by the middle logos, and finally the weakest of them all would be
pathos.
Logos – The logos that were introduced in this particular article are. The overall ... Show more
content on Helpwriting.net ...
Both objects are a identified as art or their own meaning. Without it, we wouldn't have anything to
enjoy other lives with or a sensation for playing people creations for looking at them at the same
time. Do you think video games are identified as a art? Overall, I think the argument presented in
"Video games can never be art by Roger Ebert is not partially effective on the target audience of
people who believe in his opinion. As we explore Ebert's argument's that video games can't be art,
we will examine the strongest out of the argument (Ethos), followed by the middle pathos, and
finally the weakest of them all would be

Appraising the Secretaries
FIN254
Case
Time Value of Money
Fall–2012
1) Assume that your father is now 50 years old, that he plans to retire in 10 years, and that he
expects to live for 25 years after he retires, that is, until he is 85. He wants a ﬁxed retirement income
that has the same purchasing power at the time he retires as $40,000 has today (he realizes that the
real value of his retirement income will decline year by year after he retires). His retirement income
will begin the day he retires, 10 years from today, and he will then get 24 additional annual
payments. Inﬂation is expected to be 5 percent per year from today forward; he currently has
$100,000 saved up; and he expects to earn a return on his savings of 8 percent per year, annual ...
k) If the bond had sold at a discount, would the yield to maturity or the yield to call have been more
relevant?
5) Mashrafee Inc. is expected to grow at a constant rate of 6 percent and its dividend yield is 7
percent. The company is about as risky as the average firms are in the industry. However, the
company just successfully completed some R&D work that leads the company to expect that its
earnings will grow at a rate of 50 percent this year and 25 percent the following year, after which
growth should match the 6 percent industry average rate. The last dividend paid (D0) was $1.00.
What is the value per share of the firm's stock?
6) You purchase a share of Kamal Corporation stock for $21.40. You expect it to pay dividends of
$1.07; $1.1449 and $1.2250 in years 1, 2 and 3 respectively and you expect to sell it at a price of
$26.22 at the end of 4 years.
l) Calculate the growth rate in dividends and the expected dividend yield. m) Assume that the
calculated growth rate (in a) is expected to continue, you can add the dividend yield to the expected
growth rate to get the expected total rate of return. What is the stock's expected total rate of

Anderson Hall
The Velcro Family: Together Now, Until Drawn Apart
Anderson Hall has brought together many unlike people and serves as a home base for its
inhabitants to bond and have a family away from home. The term family can be defined in many
ways. For this composition, family will be defined as a group of people related through shared
characteristics, such as going to Snow and living in Anderson Hall. Anderson Hall is the farthest
south on–campus residence hall at Snow College. Since it is exclusively sleep studies, residents of
Anderson Hall have just their beds, desks, and TV's in their rooms. About half of the rooms are
shared and have two roommates living together, and the other half are private rooms with solely one
student housed per room. ... Show more content on Helpwriting.net ...
The family in Anderson Hall has bonded through shared experiences and stresses, such as problems
with construction and mental crises. For many students, mom and dad are particularly far away, and
this family is a great way for them to feel loved and safe while away to continue their education.
Although temporary, this family is an important part of the college experience to many students. The
experiences and support here are important to the success of the students and are matters that will
not be soon forgotten. The residents of Anderson Hall are together now, and when the time comes,
they shall be split like Velcro and placed into new experiences, new homes, and new

Viacom Case Analysis
Viacom is currently one of the most prominent conglomerates of American media. From films and
television shows to music awards and record labels, it is unlikely that one would not run across one
of Viacom's many acquisitions. Beginning in 2005, Viacom has continually expanded throughout the
United States and even abroad. Viacom makes use of a variety of different media techniques and
strategies to maximize their profits and grow their company. In order to completely understand the
business model of Viacom, it is crucial to analyze its role as a conglomerate as well as its use of
integration, synergy and the franchise model. Croteau and Hoynes define conglomeration as media
companies becoming "part of much larger corporations, which own a collection of other companies
that may operate in highly diverse business areas" (40). As a conglomerate, Viacom has taken
ownership of a variety of different brands and companies. While the holdings are diverse, they are
synonymous due to the fact that they all serve the purpose of providing some type of entertainment
to a specified audience. For example, Viacom provides entertainment through the MTV channels as
well as the Nickelodeon channels. Although these two channels may offer vastly differing content,
both allow Viacom to pursue the goal of gaining a large stable audience and increasing in popularity.
Similarly, Viacom furthers its role in the media industry with its film production holdings.
Paramount Pictures and its sister

State of Connecticut Municipal Bond Study Essay
State of Connecticut Municipal SWAP Case Study An Analysis and Recommendation of Synthetic
Fixed Rate Derivatives State of Connecticut Municipal Swap Case Study: An Analysis and
Recommendation of Synthetic Fixed Rate Derivatives Dear Mr. Benson R. Cohn, We, the State of
Connecticut, have typically financed the long–term capital needs of the State through tax–deductible
General Obligation bonds. This allowed us to achieve a lower costof–debt than similar taxable
bonds. In stark contrast to the fixed–rate long–term debt financing, short term municipal financing
for our State was often achieved through innovative methods developed by Wall Street. These new
funding options, commonly referred to as Variable–Rate Demand Obligations ("VRDO's"), ... Show
Even though these products are issued as long–term securities, they have many of the same features
as traditional short–term ones. These debt products are both callable and puttable which gives the
issuer as well as the investor flexibility. The call feature allows the issuer to buy back the bond. For
issuers who are not sure how long they will need funds, they can get out of the agreement by calling
the bond. Same goes for the investor; they can exercise the put option and receive their money back.
In order to make these products more liquid, investment banks are used as remarketing agents.
These agents resell the bonds at new rates to other investors. However, there is a cap on how high
the rates on the bonds can be reissued at in order to limit the coupon payments. These variable rate
debts also track the JJ Kenny index. The JJ Kenny index is an index similar to the S&P 500 but for
municipal bonds. Also, a synthetic fixed rate debt can be created from combining a variable rate
debt and a SWAP. Given the two proposals, the state is faced with three forms of debt. The first form
is a fixed rate option that would provide the state with 20 year serial issued bonds with fixed
payments for the duration of the bond and callable after ten years.

Work Help
The future value of an investment will increase when
| | |the number of years increases. |
| | |the interest rate increases. |
| | |both a and b. |
| | |none of above. |
Question 2
When the compounding frequency increases (interest is paid more often), the future value of the
investment will
| | |increase. |
| | ... Show more content on Helpwriting.net ...
|
| | |the company's inventory is somewhat obsolete. |
| | |the company's inventory is more liquid. |
| | |the company's sales are higher. |
Question 9 The current ratio of a firm would equal its quick ratio whenever:
| | |the firm has negative liquidity. |
| | |the firm has zero debt. |
| | |the firm has zero inventory. |
| | |the ratios are calculated in such a way that they can never be equal. |
Question 10 Rollin's Corporation has a before– tax cost of debt of 12%, its beta is 1.2, the risk– free
rate is 10 percent, and the market return is 15 percent. The marginal tax rate of the company is 40%.
What is the cost of debt for Rollin's

Notes on Investment Test
Chapter 7 Test Review
Problem 7–1
Bond valuation
Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a
$1,000 par value, the coupon interest rate is 6.5%, and the yield to maturity is 11%. What is the
bond's current market price? Round your answer to the nearest cent.
Annual Interest Payment = Par Value * Coupon Rate $1,000 * 6.5%= 65
Financial Calculator
N= 5
I/YR= 11%
PMT= –65
FV= –$1,000 Find PV?
Bond's Current Market Price= 833.68
Problem7–2
Yield to maturity and future price
A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.
a. What is its yield to maturity (YTM)? Round your answer to two decimal places.
Par Value= $1,000 ... Show more content on Helpwriting.net ...
Round your answer to the nearest cent.
Bond S: Change N = 1, PV = ? PV = $1,018.35
5) What will the value of the Bond L be if the going interest rate is 12%? Round your answer to the
nearest cent. 12%: Bond L: From Bond S inputs, change N = 17 and I/YR = 12%, PV = ?, PV =
$928.80
6) What will the value of the Bond S be if the going interest rate is 12%? Round your answer to the
nearest cent.
Bond S: Change N = 1, PV =? PV = $991.07

B.
Why does the longer–term bond's price vary more than the price of the shorter–term bond when
interest rates change?
I. Long–term bonds have greater interest rate risk then do short–term bonds.
Problem 7–8
Yield to call
Seven years ago the Singleton Company issued 20–year bonds with a 11% annual coupon rate at
their $1,000 par value. The bonds had a 6% call premium, with 5 years of call protection. Today
Singleton called the bonds.
A. Compute the realized rate of return for an investor who purchased the bonds when they were
issued and held them until they were called. Round your answer to two decimal places.
Par Value= $1,000 *6%= 60+1000= 1,060
Coupon Rate= 11% Bond Price= 1000
No of Years= 7
Semiannual Interest Payment= 1,000 * 11%= 110 Financial Calculator
N= 7
I/YR= ?
PMT= 110
FV= 1,060
PV=1000
YTM = 11.60%
B. Explain why the investor should or should not be happy that Singleton called them.
Since the bonds have been called, interest rates must have

mid term paper
Mid–Term Examination, Winter 2010
Level: Masters Full Marks: 100
Program: MBAe Section B Pass Marks: 60
Course: Financial Management Time: 3 Hrs.
Term: III
Candidates are required to be original and fair in the presentation of their answers.
The figures in the parenthesis indicate the marks for respective question.
Attempt all the questions
Section A
Attempt all questions
Each question carries 6 marks [5 x 6 =30]
1. You have to pay $12,000 a year in school fees at the end of each of the next six years. If the
interest rate is 8%, how much do you need to set aside today to cover these bills? [3]
Answer:
Find out the PV of $ 12,000 as 6 years annuity. Answer – $ Rs 55476
You have ... Show more content on Helpwriting.net ...
[3]
Answer:
Dividend Payout Ratio being constant, EPS growth rate will be equal to dividend growth rate. Next
year's EPS = 8% more than Rs 5. Answer = Rs 5.4
Alternative way,
EPS 1 = EPS 0 + Retained earning per share x Rate of return
EPS 1 = Rs 5 + 3.2 x 0.12 = Rs 5.4

Section B
Attempt any three questions
Each question carries 15 marks [3 x 15 = 45]
6. The Tanner Company's cost of equity is 18%. Tanner's before tax cost of debt is 12%, and its tax
rate is 40%. Using the following balance sheet, calculate Tanner's after tax weighted average cost of
capital. (Assume that this accounting balance sheet also represents Tanner's target capital structure)
– All figures are in Ten thousands.
Assets
Amount
Liabilities
Amount
Cash
Rs 100
Accounts Payable
Rs 200
Accounts Receivables
200
Accrued taxes due
200
Inventories
300
Long term debt
400
Plant and Equipment, net
1800
Equity
1600
Total Assets
Rs 2400
Total Liabilities
Rs 2400
Answer:
While computing D/E ratio or D/V and E/V ratio, we always use only long term capital (debt, pref
stock, equity). So D = 400 and E = 1600 in this case and V = sum of both = 2000
Thus, we get Wd = 0.2 and We = 0.8. This will be used in all of the three problems, since its not
changing with question.
Kdat = 7.2 %, Ke = 18%. Hence we get WACC = 15.84%
Find

Financial Instruments – Other-Than-Temporary Impairment
Joseph Won
ACCT 351
Research Case 2
February 11, 2015
Financial Instruments – Other–Than–Temporary Impairment 1. For the following investments,
determine if OTT should record an other–than–temporary impairment as of December 31, 20X1,
and if so, for what amount:
Happy New Year & Co.
* Since the fair value of investment is less than its cost, the Company should proceed to step 2 for
identifying and accounting for impairment. However, there is no indication that OTT does not
expect the fair value of the security to fully recover before the expected time of sale. The Company
actually does not believe the decline in price to be permanent. In addition, it does not intend to sell
this investment in the ... Show more content on Helpwriting.net ...
* It should be the entire difference between the investment's cost and its fair value at the balance
sheet date of the reporting period for which the assessment is made. So, the recorded amount is
(100–72) * 50 = $1,400.
(FASB 320–10–35–34)
3. Assume the same facts as in 2 above, but that OTT has not yet determined whether an impairment
exists or the amount of any possible impairment. For March Madness Incorporated, would OTT still
conclude that the investment is other–than–temporarily impaired, and would the impairment charge
as of December 31, 20X1, be different if the stock price at issuance of the financial statements (i.e.,
as of January 31, 20X2) was $95 and not $75?
* Unless it is clear that the impairment is deemed other than temporary, we cannot conclude that the
investment is other–than–temporarily impaired. For the second part of the question, the charge will
not be different because it depends on the fair value at the balance sheet date, not the issuance date.
(FASB 320–10–35–33 and 34)
4. For Tohoku Toys, determine if OTT should record an other–than–temporary impairment as of

December 31, 20X1.
* OTT does not believe that the restructuring will ultimately be successful. So, an other–than–
temporary impairment should be considered to have occurred if the Company intends to sell them or
not.
(FASB 320–10–35–33C)
5. For Chatterbox, what amount should be recorded as the other–than–temporary

Decision Making
–––––––––––––––––––––––––––––––––––––––––––––––––
CHAP 19
When a company issues securities to the general public, it usually uses the services of an investment
banker who underwrites (purchases at a fixed price on a fixed date) new securities for resale.
For this service, investment bankers receive the difference, or underwriting spread, between the
price they pay for the security and the price at which the security is resold to the public.
There are three primary means by which companies offer securities to the general public:
1) Traditional (or firm commitment) underwriting
If the issue does not sell well, either because of an adverse turns in the, market or because it is
overpriced, the underwriter, not the company, ... Show more content on Helpwriting.net ...
The stock is therefore said to trade "rights–on" prior to the ex–rights date. On or after the ex–rights
date, the stock is said to trade "ex–rights." That is, the stock is traded without the rights attached.
Pas pigé:
Suppose that a rights offering has been announced and that the stock is still selling "rightson." An
investor wishing to be sure of owning one share of stock trading "ex–rights" could buy one share of
stock just before the stock went "ex–rights" for the "rights–on" market price of the stock and simply
hold the stock. Alternatively, the investor could purchase the number of rights necessary to purchase
one share, set aside an amount of money equal to the subscription price, and wait until the
subscription date to purchase the stock. The difference between the two options is that the former
gives the investor one right in addition to one share of stock.
Warning:
We should be aware that the actual value of a right may differ somewhat from its theoretical value
because of transactions costs, speculation, and the irregular exercise and sale of rights over the
subscription period. However, arbitrage acts to limit the deviation of the actual value from the
theoretical value.
Standby Arrangement
A measure taken to ensure the complete success of a rights offering in which an investment banker
or group of investment bankers agrees to "stand by" to underwrite any

Essay on James Bond Movies
James Bond Movies
I think that the writers intensions when he created James Bond was that he wanted him to be a man
who could get out of any situation and is irresistible to women, he also wanted him to be a secret
agent who has all these interesting gadgets.
The first film that I will be reviewing is Goldeneye. Goldeneye was released in 1995. The storyline
for Goldeneye is that the Russian mafia has a space based weapons system called goldeneye. Its up
to James Bond to save London from this, on his way he runs into characters such as a beautiful
computer programmer (Izabella scorupco), a former partner (Sean Bean), a wise cracking CIA agent
(Joe Don Baker), an ex KGB officer (Robbie ... Show more content on Helpwriting.net ...
James bond hits women in Goldeneye which a lot of women would find offending. An example of
when he hits a woman is when he is talking to Xenia and knocks her out by a chop to her neck and
puts humor into it by saying "good night".
The song Goldeneye by Tina Turner is very effective in the film because it blends in with everything
that is happening in that section of the film. The original James Bond theme is mostly played in the
action parts of the movie and at the start of the movie. The James Bond soundtrack theme is played
in all of his movies, and when you hear that soundtrack you would associate it with James Bond.
When many people that hear that soundtrack being played somewhere they would immediately link
it with James Bond because it is something that resembles him. When there is a romantic scene in
Goldeneye they would play calm and soothing music, and when there is a fight they would play
music that is loud and fast and will get you hyped up.
The second James Bond film that I will be reviewing is Goldfinger. Goldfinger was the third James
Bond film and was created in 1964. In Goldfinger the main character played by Gert Frobe, isn't the
most vicious villain to stand against 007 but he is intelligent and is obsessed with gold. Frobe is
good for the role of Goldfinger because he shows the different personalities that he has– cruelty,

Use Matlab to Understand Bonds Valuation
Use Matlab to get an intuitive understanding of bonds valuation.
1. Basic knowledge:
1.1 The price equation and its six contributing factors
As we know, there are six factors that determine the expected price of bonds: the par value(F), the
maturity(n) the yield to maturity(y), the coupon interest(CF), the interest payment frequency(m),
and the interest rates for each period(ri).
We assume that the coupon interest is fixed, then the price of bonds(P)is the discounted cash flows
of each period:
P=i=1nm(CF(1+ym)i)+F(1+ym)mn=i=1nm(CF(1+rim)i)+F(1+rnm)mn
Indeed, to intuitively understand this equation is not easy. Firstly, we can see that the yield to
maturity(y) is a kind of "average" of the interest rates(ri) for each ... Show more content on
Helpwriting.net ...
In order to make the chart more easy to see, we change maturity to 20(That is n=20, r =
[0.051:0.001:0.07]), the code is
r=[0.051:0.001:0.07]; n=1:20;plot(n,r) hold all ytm1=ytmm(r,10,100); plot(n,ytm1)
r=[0.051:0.001:0.07]; n=1:20;plot(n,r) hold all ytm1=ytmm(r,10,100); plot(n,ytm1)
The chart is
Chart 1
Interest rates(r)
YTM
Interest rates(r)
YTM
We can see from the chart that:
① The trend of Interest rates and YTM are the same.
②

Capital Markets and Investment Banking Process Paper
Capital Markets and Investment Banking � PAGE �6�
Jamila Lewis
University of Phoenix INVESTMENT FUNDAMENTALS AND PORTFOLIO MANAGEMENT,
FIN 419
Instructor: STEVEN PETRIZZI March 22, 2010
Introduction
Although a crucial element in the development of commerce over the last several years, the
investment banking process can be, for those who are not continually involved in it, a rather
mystifying ordeal. Analyzing a business's financial performance and operations is the start of the
investment banking process, in addition, the external market conditions are also taken into account.
It is obvious that the important outcome and final ... Show more content on Helpwriting.net ...
(4) Real estate – "Direct or indirect ownership of real property, real estate partnerships, REITs, and
real–estate–based exchange–traded funds. Real estate typically has a low association with other
types of asset classes and can diversify your overall portfolio allocation" (Savage, 2007).
(5) Alternative investments – "Hedge funds, private equity, and commodities. These investments
provide a small connection with other traditional asset classes, which can diversify portfolio
holdings" (Savage, 2007).
CAPITAL MARKET INSTRUMENTS
There are several capital market instruments used by investors to make a profit. These capital
market instruments include: debentures, bonds, stocks, fixed deposits, T–bills, foreign exchange and
many others. The aforementioned capital market instruments are responsible for producing funds for
firms and sometimes national governments. Two basic capital market instruments are stocks and
bonds. Stocks are used in three different markets as the capital market instrument: the virtual, the

physical, and auction markets. Bonds are traded in a separate bond market, also known as a credit,
debt or fixed income market (Mapsofworld.com, 2009). In this market is also trade in debt
securities, T–bills and debentures, which are more secured than others, however, they provide less
return also.
"The capital market is the market for the issue and

Bus 405 Principles of Investment Complete Class
BUS 405 PRINCIPLES OF INVESTMENT COMPLETE CLASS
TO purchase this tutorial visit following link: http://wiseamerican.us/product/bus–405–principles–
investment–complete–class/ Contact us at:
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BUS 405 PRINCIPLES OF INVESTMENT COMPLETE CLASS
Week 1 Assignment Annualized Returns Chapter 3 problem 18
Complete problem 18 in Chapter 3 (shown below) and submit to the instructor. Show your work to
find the annualized return for each of the listed share prices. Write a 100 word analysis of the
process to calculate these annualized returns.
Suppose you have $28,000 to invest. You're considering Miller–Moore Equine Enterprises (MMEE),
which is currently selling for $40 per share. You also notice that a call option with ... Show more
Remember to complete all parts of the question and support your answers with examples from the
text and other resources.
Chapter 5 The Stock Market
Chapter 6 Common Stock Valuation
Chapter 7 Stock Price Behavior and Market Efficiency
Chapter 8 Behavioral Finance and the Psychology of Investing
Week 3 Assignment Bootstrapping Chapter 10 Problem 31
Complete problem 31 of Chapter 10 (shown below), and submit to your instructor. Show your
calculations and the algebraic manipulation of the price equation for the bond. In addition to solving
the problem, write a 100 to 200 word essay on the term structure of fixed income securities.
One method used to obtain an estimate of the term structure of interest rates is called bootstrapping.
Suppose you have a one–year zero coupon bond with a rate of r1 and a two–year bond with an
annual coupon payment of C. To bootstrap the two–year rate, you can set up the following equation
for the price (P) of the coupon bond: /(1+r_1 )+(C_2+Par value)/(1+r_2 )^2
Because you can observe all of the variables except r2, the spot rate for two years, you can solve for
this interest rate. Suppose there is a zero coupon bond with one year to maturity that sells for $949
and a two–year bond with a 7.5 percent coupon paid annually that sells for $1,020. What is the
interest rate for two years? Suppose a bond with three years until maturity and an 8.5 percent annual
coupon sells for $1,029. What is the interest rate for three

Case Analysis for Disney's Yen Financing
Part I. The fundamental information of Walt Disney
The Walt Disney Company, a diversified international company operated entertainment and
recreational complexes, produced motion picture and television features, developed community real
estate projects, and sold consumer products. The company was founded in 1938 as a successor to the
animated motion picture business established by Walt and Roy Disney in 1923.
The company operated the Disneyland amusement theme park in Anaheim, California, and the Walt
Disney World destination resort in Orlando, Florida. In addition to the domestic entertainment and
recreation revenues from Disneyland and Walt Disney World, the company received royalties, paid
in yen, on certain revenues generated by ... Show more content on Helpwriting.net ...
Thirdly, future is an obligation, which could induce some potential risks given Disney's inaccurate
forecast. 2. Long–dated forwards
Advantage: Forward is more customer–tailed and its maturity can be long enough to satisfy Disney.
Disadvantage: FX forwards will be considered by banks as a part of their total exposure to Disney,
so the valuable credit line will be tied up. And it provides no cash flow to cover short–term debt.
What's more, it is also an obligation as futures. 3. FX options:
Advantage: FX options have an open market with easy access. The most important thing is that
option is a right, rather than an obligation, which can keep Disney from the potential risks that will
be induced by future or forward.
Disadvantage: Disney has to pay a premium to obtain the right. The costs could be significant. 4.
Convert existing dollar debt into yen liability:
Advantage: It is a comparably cheap method to hedge.
Disadvantage: The hedge would be short–term since Disney's Eurodollar issue matured in one to
four years. The arrangement neither provides any additional cash nor reduces its short–term debt. 5.
Issue a long maturity Eurodollar debt which can be swapped into yen
Advantage: The costs are probably low.
Disadvantage: Disney has recently issued Eurodollar note and has temporarily high debt ratio, which
make it difficult to employ this approach. 6. Issue Euroyen bond
Advantage: It will incur low transaction cost, only front–end

Stock Case Peach Tree
Stock Valuation
Peachtree Securities, Inc. (B)
Laura Donahue, the recently hired utility analyst for Peachtree Securities, passed her first
assignment with flying colors. After presenting her seminar on risk and return, any customers where
clamoring for a second lecture. Therefore, Jake Taylor, Peachtree's president, gave
Donahue her second task: determine the value of TECO Energy's securities (common stock,
preferred stock, and bonds) and prepare a seminar to explain the valuation process to the firm's
customers. To begin, Donahue reviewed the Value Line Investment Survey data. Next Donahue
examined
Teco's latest Annual Report, especially Note E to the Consolidated Financial Statements. This note
lists TECO's long–term debt ... Show more content on Helpwriting.net ...
If the nominal required rate of return is 8.0 percent, what is the current (January 1, 1993) value per
share?
2. Now consider TECO's common stock. Value Line estimates TECO's 5– year dividend growth rate
to be 6.0 percent. Assume that TECO's stock traded on January 1, 1992 for $22.26.
Assume for now that the 6.0 percent growth rate is expected to continue indefinitely.
a. What was TECO's expected rate of return at the beginning of 1992? Value Line estimate
Teco's dividends to be $1.80 at the start of 1992.
b. What was the expected dividend yield and expected capital gains yield on January 1,
1992?
c. What is the relationship between dividend yield and capital gains yield over time under constant
growth assumptions?
d. What conditions must hold to use the constant growth (Gordon) model? Do many "real world"
stocks satisfy the constant growth assumptions?
3. Suppose you believe that TECO's 6.0 percent dividend growth rate will only hold
5 years. After that, the dividend growth rate will return to TECO's historical 10–year average of 7.5
percent. Note that D6 = D5 x 1.075.
a. What was the value of TECO stock on January 1, 1992 (the end of 1991), if the required rate of
return is 13.5 percent? Remember this value you calculate does not have to agree with the market
value of $22.26.
b. What is the expected stock price at the end of 1992 (beginning of 1993) assuming that the stock

In The Heat Of The Night Analysis
In this paper, I will be explaining my thoughts on the Cavell arguments on classical and modernist
films about movies black–and–white in comparison to the movies in color, with the reference to
Sunset Boulevard (1950) and In the Heat of the Night (1967).
Cavell beliefs in movies black–and–white is that you pay attention to the details of the film, which
include the storylines, and the content of what it is in the frame, while movies in color can be
distracting; it is considered appealing and attractive, but it can take away from the subject matter of
the story. Cavell's states "film has been moving into the modernist environment inhabited for
generations by the other major arts" (Cavell 60); he continues to say that "each arts among, had ...
Take for example the in the movie Sunset Boulevard (1950); the Norma Desmond's character
(Gloria Swanson), was portrayed a very rich woman who starred in a lot of silent movies back in her
adult life. Upon showing the inside view of her mansion, it was lacking the essence of opulence one
would expect, due to the movie being in black–and–white; the descriptions of her wealth and
possessions made by William Holden's character (Joe Gills) in my perspective did not do as much
justice as it would have been if it was screened in color. Even though, "traditional movies move with
times" (Cavell 61), the same can be achieved in movies in color; take for example the movie secret
garden (1949), this movie started off with gloomy and similar effect as the Sunset Boulevard (1950);
however, at the end color was thrown in to lay emphasis on what the main idea of the movie was
about the (garden). Gardens are expected to be beautiful and make one feel at ease; my observation
between both movies is that one is dark and was meant to end that way in the mystery which it did,
while the other started off pained and ended in joy because the garden technically coming to life in
full

BFIN 300 Quiz2 solutions
BFIN 300 Financial Management FA14 Quiz 2 Solutions
Conceptual/qualitative questions:
1. The capital gains yield plus the dividend yield on a security is called the total return.
2. Unsystematic risk can be effectively eliminated through portfolio diversification.
3. The excess return required from a risky asset over that required from a risk–free asset is called the
risk premium.
4. The market risk premium is computed by subtracting the risk–free rate of return from the market
rate of return. MRP = Return of the market – Risk–free rate.
5. The Zolo Co. just declared that it is increasing its annual dividend from $1.00 per share to $1.25
per share. If the stock price remains constant, then the dividend yield will increase. This is ... Show
The dividend amount was $.70 a share which equated to a dividend yield of 1.5%. What was the rate
of price appreciation on the stock? 11.25% – 1.50% = 9.75%
22. Your firm offers a 10–year, zero coupon bond. The yield to maturity is 8.8%. What is the current
market price of a $1,000 face value bond?
PV
430.24
FV
1,000
PMT
0
RATE or i/y
8.8%
NPER or n
10
*note: this bond used annual compounded as was given during the exam.
23. Angelina's made two announcements concerning its common stock today. First, the company
announced that its next annual dividend has been set at $2.16 a share. Secondly, the company
announced that all future dividends will increase by 4% annually. What is the maximum amount you
should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return? This
is a constant growth or Gordon growth model problem. 24. The bonds issued by Manson & Son bear
a 6% coupon, payable semiannually. The bond matures in 8 years and has a $1,000 face value.
Currently, the bond sells at par. What is the yield to maturity?
PV
1,000

FV
1,000
PMT
6%/2
RATE or i/y
3%x2 = 6%
NPER or n
8x2
*Note: a bond selling at par value will have a yield to maturity equal to its coupon rate.
25. Eight months ago, you purchased 400 shares of Winston, Inc. stock at a price of $54.90 a share.
The company pays quarterly dividends of $.50 a share. Today, you sold all of your shares for $49.30
a share. What is your total percentage

Fof Final Assigment
INTRODUCTION
Investment instrument is a document such as bond and share certificate that has monetary value
through agreement that agrees make payment of money to another parties for purpose gain equity
capital or loan capital. An investment instrument give a promise of earnings and return to the
holders or recipient. It also called as financing instruments. There are three common types of
investment instruments in the market which are money markets, bonds and common shares.
Money market is the short–term loan market which is less than one year maturities with relatively
liquid and low–risk debt due to short duration. Governments and large corporations are usually
issued the money market securities in forms of banker's acceptance, ... Show more content on
Helpwriting.net ...
When the company is going to bankrupt, the loss of the company, the common stockholder have the
right to not responsibility for the loss facing by the company. It is because a corporation is a separate
legal entity under the law. For example an individual invest RM10, 000 in a company and the
company going bankrupt the individual will not pay the debt behalf the company.
WHY PEOPLE INEVEST IN SHARES?
Most of the people rises capital and build wealth by invest in common shares. The value of money
today is worth than the money tomorrow, so the money invested will not depreciate in value. The
investor want to make profit by holding the shares until the shares' price is above the price' they
purchase. For example, 15 June 2010 an investor bought 200 shares of Blue Company at RM50 each
share. On 18 May 2011, the investor sells 200 shares of Blue Company at RM70 each shares. The
investor will gain RM4, 000 [(200x70)–(200x50)] on the shares the investor bought.
Some investor invest in common shares, because they want an extra income. The investor can get
dividend income by investing in shares. Dividend income is distribute of the earning of the company
to the investor. Most of the company will pay the dividend to the investor when their company
earning money. As an example, Pink Company pay RM0.50 quarterly dividend to company
shareholders, the shares is RM 50 each shares. All the investors receive 4% [(0.50x4)/50] of
purchases price of stock.
PROS AND CONS
PROS:

Business Overview of Marriott Corporation
Harvard Business School
9–282–042
Rev. September 15, 1986
Marriott Corporation
The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five
million shares of common stock had been repurchased on the open market by Marriott Corporation
during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were
undervalued–a belief that still was not fully reflected in the market price. At $19 5/8, the stock was
selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from
historical multiples as high as fifty times as recently as 1973. Its low price seemed to offer once
again an obvious opportunity to benefit shareholders. However, ... Show more content on
Helpwriting.net ...
By 1980, more than 23,000 rooms were offered through 55 hotels and resorts located primarily in
the U.S. Approximately 70% of company–operated rooms were owned by outside investors and
managed by Marriott under agreements averaging 70 years in length. These management
agreements contributed approximately $40 million to operating profits in 1979–profits that tended to
rise with inflation. Contract Food Service (32% of sales)–Marriott operated almost 300 contract
food units, providing a wide range of food service capabilities to a variety of clients. It was the
world 's leading supplier of catering services to airlines, with 62 flight kitchens serving domestic
and international air travelers. The Food Service Management Division also managed restaurants,
cafeterias, conference centers and other facilities for over 200 clients, including business, health
care, and educational institutions. Restaurants (25% of sales)–Marriott 's Restaurant Group consisted
of 476 company–owned units offering a variety of popularly priced food in 46 states. Roy Rogers
fast food restaurants and Big Boy coffee shops accounted for 92% of the total units. Theme Parks
and Cruise Ships (8% of sales)–The two Great America theme parks, located in Gurnee, Illinois,
between Chicago and, Milwaukee, and in Santa Clara, California, were opened in 1976. Both parks
combined a wide variety of thrill and

Sample Question of Fin110
Section A (20 Multiple Choice Questions) (50 marks)
Select the appropriate response:
1. The primary financial goal of a corporation is to maximize
A Shareholder's wealth B Earnings per share C Stock price D A & C
2. Which of the following is not one of the three major areas of finance?
AAccounting B Investments and financial markets C Financial management of companies D The
banking system
3. A savings–surplus unit is one:
A that needs to borrow funds from a surplus unit B whose income exceeds its spending C whose
spending exceeds its income D that generally is a company
4. A _______ is a financial intermediary that receives premium ... Show more content on
Helpwriting.net ...
Calculate the one–year return on Songket stock
A 3.75% B 9.50% C 18.75% D 22.50% 16. If a project's NPV is negative?
A The project earns less than the cost of capital B The investment will not add value or contribute to
shareholder wealth C The present value of expected cash outflows is greater than the present value
of expected cash inflows D All of the above
17. The cash conversion cycle measures the time
A Between the creation of receivables and their collection B It takes for inventory to be turned into
product and sold C Between payment for inventory and collection of cash for its subsequent sale as
product D For a check to clear the banking system
18. Which of the following is a source of a short–term financing?

AAccounts payable B Accruals C Commercial paper D All of the above 19. The followings are
among the 5Cs of credit EXCEPT
A Character B Cooperation C Capacity D Collateral
20. Bursa Malaysia (Malaysia Stock Exchange) does all this EXCEPT A Be the market where
securities that have already been issued are traded between investors. B Provide transferring
ownership service to corporate securities C Being monitored by Bank Negara Malaysia and Ministry
of Finance D Issue new securities
(20 x 2.5m = 50) SECTION B
Question 21 (15

UST CASE STUDY
1. Assess the business and financial risks of UST
Business risks are relatively low:
Main risk is that UST has undiversified business, it basically relies on one product
However its main product is noncyclical, it carries little systematic risk
Imminent increase in excise tax on smokeless tobacco (however, tobacco demand is considerably
inelastic)
It is the (sub)industry leader (market share >85%), industry is an oligopoly which implies high
barriers for potential competitors to enter the market
Financial risks are even lower:
Cash flows are constantly increasing
Profit margins are high
Outperforms comparable firms
No leverage
Forecasts are positive
2. What are the benefits of debt in UST's case?
Debt tax shield: increase ... Show more content on Helpwriting.net ...
At each debt level, estimate the benefits of debt. Also, for each debt level, do a back–of–the–
envelope calculation of how big the value lost in financial distress has to be for that debt level to be
optimal for the firm. You can do this by estimating the costs of financial distress crudely as:
In order to find the benefits of debt, one needs to calculate the effective tax rate, given by:
Where: τc is the corporate tax rate τd is the tax rate for income from dividends τe is the tax rate on
equity income: τe = (dividend payout ratio)(τdiv) + (1 – dividend payout ratio)(τcg) τcg is the tax
rate on capital gains τdiv is the tax rate for income dividends
Bond default probabilities:
Bond Rating
P(default)
AAA
0.00%

AA
0.47%
A
0.14%
BBB
0.18%
BB
0.37%
B
2.42%
CCC
7.20%
6. UST Inc. has paid uninterrupted dividends since 1912. Will a recapitalization (issuing debt and
buying back equity with the proceeds) hamper future dividend payments?
In order to check what happens to dividends per share, we need to examine the effect of leverage on
the number of shares
The new number of shares outstanding will be equal to the older number of

Airjet Best Parts, Inc. Part 1
Finance | | | | | | | | | | Course Project – Part 1 – Task 1: Assessing loan options for AirJet Best Parts,
Inc. | | | | | | | | | | | | | | | | Question 1: | APR (given) | EAR (calc) | | 2nd ICONV | | | | | | National First |
3.25 + 6.75 = 10% | 10.25 | | NOM = 10% | | | | | | | | | | C/Y = 2 (semiannual) | | | | | | | | | | EFF =
10.2500 | | | | | | | | | | | | | | | | | | | | | | | | | | Regions Best | 13.17 | 13.99 | | 2nd ICONV | | | | | | | | | | NOM
= 13.17% | | | | | | | | | | C/Y = 12 (monthly) | | | | | | | | | | EFF = 13.9948 | | | | | | | | | | | | | | | | | | | | | | | | | ...
should be approximately $21.64 | | | | | | | | | | | | | | | | Question 3: | | | | | | | | | | I would think that the par
value or stated value of preferred stock would be higher in price because | | | | | it pays a fixed
dividend with a set percentage of the par or face value each period. For example, when | | | | | stock
prices increase, the value and dividends increase for common stock. However, the dividend | | | | |
does not increase for preferred stock because with this type of stock, dividends are a fixed | | | | | |
percentage of par or face value. The payout of common stock dividends will change with increases |
| | | | and decreases in the stock market. If a company liquidates, common stock holders will likely | |
| | | | get nothing because preferred stock holders and creditors will receivetheir share first. Common |
| | | | stock holders will receive anything that is left to claim, which is usually nothing. | | | | | | | | | | | | |
| | | Question 4: | | | | | | | | | | If AirJest Best Parts, Inc. annouces that their dividends will increase at
the end of the year, | | | | | | the stock price computed above would increase. An increase in dividends
generates a higher | | | | | | stock price, which in turns spurs future production and investment in that
company. If the | | | | | | required rate of

Case Analysis of Nike, Inc.: Cost of Capital
Apparently, the issue of Nike's case is to control and check the calculation cost of capital done by
Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to
tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi
Ford (portfolio manager) too. Because her assumptions such as Revenue Growth Rate, COGS /
Sales,
S &A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous
income statements and balance sheets from 1995 to 2001. Perhaps, we can take new assumptions.
Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue and the
common stock of Nike Inc should be added to the North ... Show more content on Helpwriting.net ...
–In the field of Debt's Cost:
Ø In calculating value of debt, Cohen should have discounted the value of long–term debt that
appears on the balance sheet. It means she should also consider the future value of total long term
debt base on coupon rate.
To calculate total value of debt, the steps are as follows:
From 15 July 2000 until 15 January 2001 = 6.75% coupon paid. From 15 January 2001 until 31 May
2001 (4.5 months) = 6.75 % x 4.5 months/6 months = 5.06%
Market Value of Debt (D) Calculation:
D = Current LT + Notes Payable + LT Debt (discounted) = $5.40 + $855.30 + $413.84 = $1,274.54
*435.9 – (435.9 X 5.06%) = 413.84
Using these figures, we can now find the market value of Nike Inc., and the company's capital
structure.
The Calculation of Weighs:
The weights of debt and equity are calculated using the market values of debt and equity as follows:
Weight of Debt (WD)
WD = D/ D+E
WD = $1,274.54/$12,701.98
= 10.03%
Weight of Equity (WE)
WE = E/ D +E
WE = 11,427.44/ 12,701.98 =89.97% Cost of Debt

Cost of debt was calculated by finding the yield to maturity on 20–year Nike Inc. debt with a 6.75%
coupon semi–annually. I assumed Nike Inc. to have a single cost of capital since its multiple
business segments (shoes, apparel, sports equipment, etc.) are not very different and would
experience similar risks and betas.

Bond Movies: Tracing the Cinematic Changes from Doctor No...
Bond Movies: Tracing the cinematic changes from Doctor No to Quantum of Solace
"Bond, James Bond." was voted as the #22 movie quote by the American Film Institute and as #51
of "The 100 Greatest Movie Lines" by Premiere. And he is the only literary character who is known
to everyone, shallow or not, his popularity is known to each one.
Before we go any further lets divide the Bond Movies in four significant patterns. First wave of
Bond movies shall belong to time period of Sean Connery. The second wave shall belong to Roger
Moore. Third wave belongs to Pierce Brosnan and lastly the fourth and the recent wave belongs to
Daniel Craig. I have not included Timothy Dalton's contribution as James Bond since he can only be
credited for two Bond ... Show more content on Helpwriting.net ...
Well film–makers certainly forgot to read all the books!). Moore did seven Bond movies and
acclaimed only for two, viz., The Spy who loved me and For Your Eyes Only. Next up Timothy
Dalton, does two movies and sadly remembered for none. Pierce Brosnan is the new James Bond in
a new avatar who finally decides to throw away the toupee that has been a Bond's best friend. He
does three Bond movies which are not based on any of Fleming's books. New kid on the block is
Daniel Craig – second English actor and the very first blonde to play James Bond who does some
path breaking business in his Bond business.
So now we ask why we are fussing over so many actors who played James Bond. The answer is –
we have to. This essay is not about how the Bond in the novel is different from the Bond on
celluloid. The argument would take a whole new level if that was the case. Here we focus on how
there has been several changes from the first James Bond that we saw in Sean Connery to the new
James Bond we see in Daniel Craig. And what can be the reason for these changes, with a movie
critic review of some of the Bond movies as mentioned in the paper. So this becomes our business to
understand these old and new Bond traits as to keep alive the silly tradition of Bond, James Bond.
Obviously we know that all Bond movies are based on a "formula". Their plots are same. Bond
summoned by M, Q shows him his new gadgets, Bond

Personal Narrative : Tubing
Braxton Walls
Mrs. Stewart
Per. 4
Personal Narrative
Tubing
I was frantically mowing through the pile of life jackets trying to find one that fit me. I reacher for a
red one with gray fringing the edge and swung it around my shoulders. To my surprise it fit! My
younger cousin came strolling over over looked at the life jacket I had on and came rushing over.
His name is Zane, he had bright red hair that was naturally curly, and stood no taller than my chest.
He pointed at the life jacket I was wearing and stated that it was his. I reluctantly took it off and
gave it to him. Once again I was jacketless. I picked up a yellow, black, and red one but it was to
big. I picked up an all red one, to SMALL!! Suddenly my Uncle Mark is by me ... Show more
The weather was decent, but evening was approaching and it was getting chillier. A lay on my
stomach and steady the tube as Noah gets on. We grab on to the handles in front of us and the tube is
propelled forward by the boat. We started picking up speed, but it was still easy to stay on the tube.
We started reaching speeds of up to forty miles per hour. It was amazing, the water flashed by on
either side. We were still going straight but we were ramping off waves. The water splashed in my
face every time we went airborne and landed again, but I didn't care. And then we started turning.
We turned right, which was the side I was on. We just let the tube go where it wanted to go, but that
was a mistake. The tube came closer to the gigantic wave made by the boat engine. We reamped of
the wave, and I knew I was a goner. I began sliding off the tube, and I thought I was gone. Finally
my body was flung into the water, but my hands had a firm grip on the handle bars. Uncle ralph
slowed down enough so I could pull myself up on the tube. With most of my body soaking wet, and
slippery. When we turned again we turned left. This time we tried to lean against the wave. The
tactic worked pretty good, but me hit the wave again. Noah was gone in an instant. I look back and
he is floating some ways back

Sfr1 Week 6 Mini Case
Before Apple Inc. decides to issue bonds in Switzerland, its' management team has to take a few
issues and factors into consideration before authorizing SFr1.25bn worth of debt to be put in the
company's books. General perceptions of Apple as a cashed up, financially dominant company are
not without basis. With $194bn in cash and marketable securities, Apple executives would need to
consider if they really need the money and what use would an extra 1.25bn in Swiss Francs be to
them. However, they need not look further than Apple's "Capital Return Plan", where Apple have
"executed (their) capital return program aggressively, and (they've) now taken action on over $112
billion of our $130 billion program."(Luca Maestri, Apple SVC & CFO, Transcripts, ... Show more
Switzerland has traditionally been perceived as a sort of "safe haven" for investors to keep their cash
due to its political and economic stability. The cliché is omnipresent in Hollywood movies (namely
The Wolf of Wall Street), books and various forms of media. In some ways this still holds true as
several key economic indicators still reflect positively on the economy. As of December 2014,
Switzerland had an unemployment rate of 3.2%, and GDP per capita of $54,800 (Doerr et al., 2015).
As comparison, United States had 7.2% unemployment rate and GDP per capita of $52,800.
Additionally, the strength of the Swiss Franc itself would also be a discussion point at a board
meeting. Apple executives would likely have timed the sale of their Swiss bonds after the Swiss
National Bank (SNB) surprisingly decided to unpeg the Swiss Franc from the Euro, preventing the
Franc from being affected by uncertainty in Europe. This would've made Switzerland a more
attractive destination as the Franc has always been a strong currency when pitted against other

The Main Conventions of James Bond Movies Essay
The Main Conventions of James Bond Movies
The character of James Bond is seen to the audience as a hero. Everyone wants to be James Bond
because of his charming good–looks and the gorgeous, seductive and underdressed women that he
gets to sleep with. Bond is smart, intelligent and unbelievably cool. James Bond is a very
sophisticated, good looking and strong character. The name James Bond says he is obviously an
English family man. Bond is usually aged between 35 and 40 but is still as athletic as a teenager.
Nearly every one of bond's objectives involves international terrorism of some sort and huge
amounts of money or precious diamonds.
The women in James Bond are almost always the most ... Show more content on Helpwriting.net ...
James Bond Coursework – Task 2 – How Bond films have developed and changed over the years
Women characters have not specifically changed during the years, each bond girl as attractive as the
other. In most bond films women are seen as useless and incredibly passive however in Live and Let
Die, the women are surprisingly more intelligent, important and useful.
Bonds enemies have always been after world domination that almost certainly involving terrorism
The uses of gadgets and technology have seriously changed in the course of over forty years, In Dr.
No the car chases were incredibly short and basic but in just ten years other bond films such as Live
and Let Die had numerous car and boat chases that were not only longer but more complex and
dangerous making the viewer even more excited. Over the years the creators have tried and taken
this to the next level by even using cars that can fly, boats that can drive and planes that can swim.
In the more recent bond films they have even chosen to use other modes of transport like in
Goldeneye 007 used a motorbike in the opening sequence, in The world is not enough he got his
hands on a boat/car and
Conventions like newer gadgets, faster cars and more beautiful women have changed to keep up
with the times and also bigger and better things have become available. The makers have kept the
simple

Mid Term Securities Analysis Essay
Grading Summary These are the automatically computed results of your exam. Grades for essay
questions, and comments from your instructor, are in the "Details" section below. | Date Taken: |
5/25/2012 | Time Spent: | 2 h , 45 secs | Points Received: | 161 / 210 (76.7%) | | Question Type: | #
Of Questions: | # Correct: | Multiple Choice | 8 | 7 | Essay | 5 | N/A | | |
Grade Details |
1. | Question : | (TCO D) Find the current dividend on a stock, given that the required return is 8
percent, the dividend growth rate is 5 percent, and the stock price is $50 per share. | | | Student
Answer: | $1.75 | | | $2.00 | | | $1.25 | | | $1.43 | | | | Comments: | | | | 2. | ... Show more content on
Helpwriting.net ...
The annual dividend growth rate is 6.93 percent, and the required rate of return on the stock is 10.25
percent. Calculate the current price of the stock. Do not use a financial calculator or an online
calculator. You must show your work. | | | Student Answer: | | To calculate the current price of a stock
we use the following formula P=D1/k–g P=4.66/(.1025–.0693)= $140.36 | | | | Comments: | | | | 11. |
Question : | (TCO D) Company XYZ is expected to grow at 10% annually forever, and its dividend
in the next 12 months is expected to be $2.50, and its required rate of return is 17.5%.
a. What is its intrinsic value?.
b. If the current price is equal to its intrinsic value, what is next year's expected price?.
c. Assume you buy the stock now and sell it after receiving the $2.50 dividend one year from now.
What would be your anticipated capital gain in percentage terms? .
What is the dividend yield and the holding period return?. | | | Student Answer: | | a) V0= D1/k–g =
2.50/(.175–.10) = 33.33 b) The dividend in year 2 will be D2= 2.50(1.10)=$2.75, therefore P1=
2.75/(.175– .10)= $36.67 c) 36.67–33.33=3.34, capital gain percentage will be 3.34/33.33= 10.02%,
the dividend yield will be 2.50/33.33=7.5% | | | | Comments: | | | | 12. | Question : | (TCO E) In the
past 10 years, Behavioral Finance has begun to explain the qualitative side of market movements
and investor decisions. Explain the concept and

Acc 545 Restructuring Debt
Restructuring Debt
Candace Schneider
ACC/545
June 17, 2013
Gregory Waters
RESTRUCTURING DEBT INTERNAL MEMORANDUM
TO: Scott Smith, Manager
FROM: Candace Schneider
DATE: June 17, 2013
SUBJECT: Restructuring Debt
CC: Internal Managers
One appreciates the recommendation of providing information on restructuring debt to help the
company combat its recent financial troubles. Even though the company is in the process of
reorganizing one believes this information will help a company in reporting the restructuring of
debt. One will provide information on the requirements of reporting debt on bonds, notes, and
capital leases. In performing this one will also provide the journal entries one would need to record
to restructure the ... Show more content on Helpwriting.net ...
The similarity is notes payable also "have fixed maturity dates and carry either a stated or implicit
interest rate" (Kieso, Weygandt, & Warfield, 2007, p. 685). The difference is notes payable are
not easily tradable. A company reports notes payable in a similar fashion as it does bonds. In
reporting a note payable a company records the note at its face value of its future interest and
principal cash flows. The company amortizes any discount or premium of a note over its life. If a
note has no–bearing interest rate the company should report the difference between the face value
and the cash received as a discount on the note. This amount one amortizes over the life of the note
to interest expense.
Capital Leases
A company may use capital leases to finance its acquisition of capital assets. In lease financing a
company must met the criteria of the Financial Accounting Standards Board (FASB) on capital
leases. In this a company must record both a liability, and a related asset on its balance sheet. In
reporting capital lease a company reports the lease at its present value of the minimum lease
payments. The company allocates these lease payments using the effective interest method to
interest expense. This allocation using the effective interest method reduces the lease liability of the
company.

A company regardless of the type of liability it has must report the interest rate, maturity date,
current interest expense, and future

James Bond Movies: Tarantula Termenom
Movies have failed miserably at enlightening the public about tarantulas. Case in point: a villain in
the first James Bond movie (Dr. No) puts a tarantula in our hero's bed. As Bond wakes to see the
stocky black spider crawling on his shoulder he appears to be sweating heavily–presumably because
this creature could kill him. But the tarantula's bite is no more deadly than a bee sting. It was never
the spider's intention to bite Sean Connery, obviously too big to eat. The creature's small mind was
on how to get back to its familiar burrow, and Bond had more to fear from the cigarettes he smoked.
(It was 1962.) Tarantula venom serves to subdue small prey–mainly insects; it actually takes
considerable effort to get a tarantula to bite a human

Securitization Pros & Cons
Executive Summary
The introduction of financial sector reforms in India has led to innovations in financial markets and
instruments. One of the most prominent developments in the international finance in recent times
that is likely to assume even greater importance in future is 'securitisation'. Securitisation is the
process of pooling and re–packaging of homogenous illiquid loans into marketable securities.
Increased pressure on operating efficiency, on market niches, on competitive advantages, and on
capital strength, all provide fuel for rapid changes. Securitisation is one of the solutions to these
challenges. 2. Reserve Bank of India, as a facilitator, has attempted to explore the intricacies of
securitisation as a process of ... Show more content on Helpwriting.net ...
v) SEBI may consider removal of prohibition on investment in mortgage backed securities by
Mutual Fund Schemes. vi) Tax neutrality of Special Purpose Vehicle. Recommendations for tax
reforms also include the spread of upfront income received by Originator over the tenure of the loan
securitised, extension of benefits under Section 88 of Income Tax Act for repayment of housing
loans after the loans have been securitised etc. 10. Other recommendations are summarised below: i)
The most significant impact of securitisation arises from the placement of different risks and rights
of an asset with the most efficient owner. The training institutes of the financial institutions should
attempt to spread awareness of the benefits and scope of securitisation increasingly among financial
community. ii) Spell out the risk weights and NPA norms on securitised paper. Insurance Companies
and Provident Funds need to be encouraged to invest in the securitised paper. Besides, suitable
regulatory framework may have to be evolved to encourage Foreign Institutional Investors. iii)
Listing requirements for various securities to be issued may be stipulated which may include
minimum issue size, eligible stock exchanges etc. iv) Include the securitised paper in demat trading.
v) While identifying the key characteristics of special Purpose Vehicle (SPV) to keep the structure
"remote" from the bankruptcy of the Originator, the Group recommends flexibility in the

Finance de La Torre
De la Torre a) Why is corporate finance important to all managers? * It is important for the decisions
taken in the company, investment decisions and financing decisions. * Every decision taken in the
company has a financial impact. * Investment projects, how much to invest and what assets to
invest. * To raise the necessary cash * To increase the shareholders' stake in the firm. b) Describe the
organizational forms a company might have as it evolves from a start–up to a major corporation.
List the advantages and disadvantages of each form. Sole Proprietorship. Sole owner of a business.
The manager and the owner is the same person. The sole proprietorship has unlimited liability. You
pay taxes as owner and ... Show more content on Helpwriting.net ...
WACC =XD (rD) (1–Tx) + XS(rS) XD: % de los pasivos del total de deuda de acreedores
financieros representados del total de los recursos. rD: Costo de los recursos de los acreedores (tasa
de interés). Tx: Tasa de impuestos. XS: Proporción de los recursos de los accionistas en el total de
recursos con costo explícito. rS: Costo de oportunidad de los recursos aportados por el accionista.
Tasa de retorno de los accionistas en función del riesgo que enfrenta. h) How do free cash flows and
weighted average cost of capital interact to determine a firm's value? Tiene que ver con valuación.
Firm value es el valor presente a precios del mercado. Valor intrínseco: valor presente de los flujos
de efectivo. A firm's fundamental, or intrinsic, value is defined by: Value=
FCF11+WACC1+FCF21+WACC2+FCF31+WACC3+...+FCF∞1+WACC∞ i) Who are the providers
(savers) and users (borrowers) of capital? How is capital transferred between savers and borrowers?
Savers: Households are net savers. Persons, families, companies which their income is greater than
their expenses. Governments are net savers when they run a surplus. Borrowers: Non–financial
corporations are net borrowers. Governments are net borrowers when they run a deficit. Capital is
transferred through: a) direct transfer (in example, corporation issues commercial paper to insurance
company) b) an investment banking house (in example, seasoned equity offering, or

case Kroll Essay
1. Jules Kroll is planning to enter the credit ratings business. Is this a good idea? Is this a good time?
Why?
We suggest it is a good time but not a good idea for Jules Kroll to enter the credit ratings business.
In order to know whether it is right for him to do so, we have used SWOT analysis to see the
feasibility of this plan.
Strength Jules B. Kroll – the leader of Kroll Bond Rating Agency, is the formidable strength for
them to enter this new industry by his successful business career and abundant experience as an
entrepreneur. Few people ever penetrate the dark side of money, but Jules Kroll is one of them. He
has done all his life to look under the covers. The previous success and reputation of the Kroll ...
So it is also attractive for Jules Kroll to take this opportunity to enter the credit rating industry. In
addition, the "issuer pays" model, which used by the big three rating agencies, lets companies shop
around for the best ratings, putting pressure on the agencies to inflate their grades. As a result, it is
very difficult to argue that they can adequately represent the users' side. Therefore, Jules Kroll wants
to use another model that can assign unbiased and reliable ratings.
Threat The leading ratings agencies, Moody's, Standard & Poor's and Fitch – a triumvirate some
liken to an oligopoly, almost dominate the whole market. Their long history operations, great
reputation and customers' loyalty in the industry lead them incomparable to new entrants.
Furthermore, Kroll also faces competition from new entrants like Meredith Whitney, a banking
analyst who is getting into the ratings business, and Morningstar, of mutual fund fame, and the
Chinese municipal rating agency Dagong with huge capital. Therefore, it is tough for Kroll to break
into this new industry where the three dominant incumbents have 97% of all ratings.
In conclusion, we could say it is a good time for Kroll to enter credit rating business since the big
three agencies lost considerable investor confidence during the financial crisis, and that the sector is
ripe for new blood. However, based on our SWOT analysis, we don't think it

Personal Finance Unit 4
Brittany James
FIN 1100
Module 4 Home Work Assignments
[Answer all questions in details]
1.|Matthew Boyd asks for your help! He has saved $10,000 and wants to invest in common stock.
Choose one of the long–term or short–term techniques described in this chapter and – long term
technique: Dollar cost averaging explain how that method could help Matthew achieve his
investment goals. – this method Dollar cost averaging is a long–term technique used by investors
who purchase an equal dollar amount of the same stock at equal intervals. This could help Matthew,
because he could avoid the common pitfall of buying high and selling low. He could make money if
the stock is sold at a price higher than the average ... Show more content on Helpwriting.net ...
(F) convertible bond |
9.|Explain the difference between a load fund and a no–load fund. From a performance standpoint,
is there a significant difference between mutual funds that charge commissions and those that do
not?
– the difference between load fund and no–load fund is Load fund is a mutual fund in which
investors pay a commission every time they purchase shares, and no–load fund is a mutual fund in
which the individual investor pays NO sales charge. There is no significant performance difference
between mutual funds that charge commissions and those that do not.|
10.|Describe the steps involved in a typical stock transaction.
–A market order which is a request to buy or sell a stock at the current market value.
–limit order which is a request to buy or sell a stock at a specified price.
–stop order which is an order to sell a particular stock at the next available opportunity after its
market price reaches a specified amount.
|
11.| Choose four of the investment alternatives presented in Chapter 13
– Stocks, bonds, mutual funds, and real estate describe how the factors of safety, risk, income,
growth, and liquidity affect that investment alternative.
–All these factors matter when choosing an investment alternative. Because you want to make sure
theres safety (minimal risk of loss) in the investment. there are many different risk such as inflation
risk, interest

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