FIN 401-061 RYERSON UNIVERSITY Midterm Exam – March 4‚ 2013 – Prof. M. Toffanin Version A Time allowed: 2 hours Aids allowed: Closed book except for an 8 1/2” by 11” crib sheet. Answer all multiple choice questions on the scan sheet. All questions are worth 1 mark each. There are 30 multiple choice questions. Good luck! 1. Which version of the exam do you have? This is a free mark – take it. Make sure you answer it correctly‚ though. A) Version A B) Version B Please use the following
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Lesson 1 (3.0 points) 1. What is a money market account? (0.5 points) Is a financial account that pays interest based on current interest rates in market 2. What is a liquidation policy? (0.5 points) When firm is bankrupt and assets are sold and proceed to pay creditor 3. What is simple interest? (0.5 points) Money you can earn by investing money 4. What is compound interest? (0.5 points) Interest that is paid on both principal and any interest from past years 5. What is the
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2008 was Goldman over or under capitalized? At the end of Q3 2008‚ the company was Over-Capitalized. 4. Who got the better deal? Buffett or Goldman? Warren Buffett got the better deal 50‚000 shares of cumulative perpetual preferred stock with a liquidation value of $100‚000 per share and a 10% annual dividend. He got the option to buy stock at a discounted price: warrants to buy $5 billion of common stock for $115 a share at any time in the next five years. Basically‚ just by buying stock he would
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1. Explain how organizations in the not-for-profit sector differ from organizations in the public sector or for-profit business sector. Provide an example of an entity in each sector. The discussion bellow tries to explain how organizations in the not-for-profit organizations differ from organizations in the public sector or for-profit business sector. The easiest way to understand the difference between the public‚ for-profit‚ and nonprofit sectors is to understand the constituents that each serves
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SIVA SIVANI INSTITUTE OF MANAGEMENT BUSINESS RESEARCH MANAGEMENT LITERATURE REVIEW ON ‘4 C’S OF FINANCIAL ANALYST’ By D. SAHITYA KEERTHI 2B2-59 ELEMENTS OF CORPORATE CREDIT ANALYSIS The financial analyst considers the four ’C’s of credit. Character This refers to the ethical reputation‚ business qualifications and operating record of the directors‚ managers and executives responsible for borrowing and repaying the funds. It addresses the borrower’s willingness to pay irrespective
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It had been about five years since we were last here. As we drove the two miles down on North Main Street towards an Osterville restaurant‚ I observed a distressing sign (or actually MANY signs). The high-end houses and estates-NOT beach houses or bungalows- were up for sale. The number of FOR SALE signs (16 of them!) in just two miles was very unusual for this area and for its type of residents; full time residence homes with expensive lush green yards and some with wrought iron security fencing
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a major focus of Erie. Each product in each market segment will be priced above average‚ as the constant R&D development and fresh vibe of each product will be used gain market share and win consumers over. Production Plans Plant capacity/liquidation Finance Allocate the money well‚ in order to support the expenses of other sectors‚ such as R&D‚ marketing‚ production and TQM. Issue the long term debt when it is necessary‚ to pay the investment in capacity‚ automation and production.
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or in general reserves of a bank. They must be accepted by the bank’s supervisory authorities. Hybrids are instruments that have some characteristics of both debt and equities. They are able to take losses on the face value without triggering a liquidation of the bank; they may be counted as a capital. The other item is the subordinate term debt. It the debt that ranks lowers than ordinary depositors of the bank. Only those with a minimum original term to maturity of five years can be included in
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for the first year. The operating costs for the first year (excluding depreciation) are estimated to be USD 10‚000. Revenues and operating costs are supposed to grow at the annual rate of 7% and 5% respectively. The pre-tax income from the asset liquidation after 5 years is estimated to be USD 3‚000. The project life is 5 years. The cost of capital of the project is 12% per annum. The corporate income tax rate is 28%. In addition‚ the requirement for incremental net working capital (NWC) of the project
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their forecasting predictions. In addition‚ Rol Fessenden eludes to the fact that the methodology has issues because they can’t find any real distribution errors among products and he is not convinced about the estimating contribution margins and liquidation costs. In summary‚ there are many challenges to LL Bean’s ordering process. LL Bean tends to be okay with just overstocking rather than focusing on making accurate predictions. This approach leads to unwarranted costs that can be eliminated
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