finance lab week 3

• If compounded quarterly: Now if the payment periods remain the same, while the interest is compounded quarterly, once again, the payment periods do not correspond to the compounding periods. An adjusted periodic rate for semiannual payment (Is) must be calculated first according to the quarterly periodic rate (Iq). This time, the equation should be:

1. Based on the following data, would you recommend buying or renting? |Rental Costs |Buying Costs | |Annual rent, $7,380 |Annual mortgage payments, $9,800 ($9,575 is interest) | |Insurance, $145 |Property taxes, $1,780 | |Security deposit, $650 |Insurance/maintenance, $1,050 | | |Down payment/closing costs, $4,500 | | Damage to the parked car was $5,400 and damage to the store was $12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?

@ 5% per annum FV = PV x (1+i)n FV = 50,000 x (1+5%)1 FV = 50,000 x 1.05 FV = 52,500 at maturity after a year @15% per annum FV = PV x (1+i)n FV = 50,000 x (1+15%)1 FV = 50,000 x 1.15 FV = 57,500 at maturity after a year c. BankSouth offers CDs with 10 What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

FAMILY NAME: ______________________________________ OTHER NAME(S): ______________________________________ STUDENT ID: ______________________________________ SIGNATURE: ______________________________________ PAPER ID: 00615 THE UNIVERSITY OF NEW SOUTH WALES AUSTRALIAN SCHOOL OF BUSINESS SCHOOL OF BANKING AND FINANCE FINS1613: BUSINESS FINANCE SEMESTER 1 2012 FINAL EXAM 1. TIME ALLOWED – 3 hours 2. THIS EXAMINATION PAPER HAS 19 PAGES 3. TOTAL NUMBER OF QUESTIONS – 45 Multiple Choice 4. TOTAL MARKS AVAILABLE –

Assignment 1: Part 1: Economic Basics (10.0 points) Please BOLD/HIGHLIGHT your answers to make it easy for me to see your answers. 1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) It makes a plan

Competition Bikes Inc. Storyline Operational Analysis 03/10/2014 WGU JET2 Financial Analysis Task 2 Introduction In this task, the budget schedule and proformas as well as the flexible budget were reviewed. Below you will find my analysis and recommended corrective actions as well as how management by exception applies. Budget Planning Concerns Competition Bikes

1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget.

UNIVERSITY OF TORONTO at Scarborough Management MGTC09 (Intermediate Finance) Midterm Exam Total Marks: 100 ASSIGNMENT 1 Date: February 24, 2010 Time: 5:10-7 p.m. Due Date : June 3, 2010 by 11 am Prof. Syed W. Ahmed QUESTION NO. MAX. MARKS MARKS OBTAINED 1 20 __________________ 2 25 __________________ 3 25 __________________ 4 30 __________________ 100 __________________ TOTAL MARKS QUESTION 1: Ellesmere International has 1 million shares of common stock outstanding. The current share price is $25 per share. The most recent dividend was $1 and the growth rate is 5%.

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

Student Answer: a. I = 4%, PV = $74,000, N = 20, FV = $162,143.11 a. Using Excel enter '=-FV(4%,20,,74000) = $162,143.11 salary needed to keep pace with inflation. b. FV = $2 million, N = 25, I = 8%, PMT = $27,357.26 a. Using Excel, enter '=-PMT(8%,25,0,2000000)' = $27,357.26 as the necessary annual payment to be saved. c. PMT = $160,000, N = 20, I = 4%, PV = $2,174,452.22 a. Using Excel, enter '=-PV(4%,20,160000)' = $2,174,452.22 needed for retirement. d. FV = $3.5 million, N = 30, I = 7%, PMT = $37,052.41 a. Using Excel, enter '=-PMT(7%,30,0,3500000)' = $37,052.41 annual payment to be saved.

Financial Analysis Task 2 A1. Concerns There are a couple of concerns with Competition Bikes Inc., ProForma for year 9. The first concern is the amount of money that is allocated to research and development. For the previous three years, they have been all over the board with their budgets. The sixth year was $71,460, the seventh year was $98,280, and the eight year was $82,284. This is concerning that the budget has fluctuated so much. In the ninth year they have allocated $85,861. This budget line item should be analyzed so there is not so much variance in the budget between year to year.

Exercise 37: A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account? (Bluman, A. G. 2005, page 230).

PV of Outlay = $45,000 X (1.1)4 (in perpetuity) 0.77156 If the present is Year 0 and rates compound annually, in what year does the first outlay of $45,000 occur? Hint, you’re using the perpetuity approach to valuation.

I for one, know the benefits of having a personal accountant, will definitely be investing in meeting with one. I would much rather be safe than sorry. I might even just meet with one every few months, just to make sure I am on the right track. This could benefit the business community by avoiding debt, and financials crisis. It would help people be more involved in the business community by allowing people to be able to invest in stocks due to the fact they know are comfortable in their

Case Analysis 2 - Weight 30% of total assignment The CEO of Dynamic Manufacturing was at a conference and talked to a supplier about a new piece of equipment for its production process that she believes will produce ongoing cost savings. As the Operations Manager, your CEO has asked for your perspective on whether or not to purchase the machinery.