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I'd like you to write a brief essay, which I anticipate will be between 300 and 400 words, answering the following questions:
- Explain the definition of financial value.
-
How does an estimate of financial value of compare with the cost of a bachelor's degree?
-
What role, if any, do you think that risk plays in your analysis?
-
How would you attempt to measure the financial value of your bachelor's degree?
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- What is the basic formula for finance? For example, presenet and future value... I need to know the basic formulas to have some knowledge to do well in my class.Students taking the Graduate Management Admissions Test (GMAT) were asked about their undergraduate major and intent to pursue their MBA as a full-time or part-time student. A summary of their responses follows. a. Develop a joint probability table for these data. b. Use the marginal probabilities of undergraduate major (business, engineering, or other) to comment on which undergraduate major produces the most potential MBA students. c. If a student intends to attend classes full-time in pursuit of an MBA degree, what is the probability that the student was an undergraduate engineering major? d. If a student was an undergraduate business major, what is the probability that the student intends to attend classes full-time in pursuit of an MBA degree? e. Let F denote the event that the student intends to attend classes full-time in pursuit of an MBA degree, and let B denote the event that the student was an undergraduate business major. Are events F and B independent? Justify your answer.Assume that you are nearing graduation and that you have applied for a job at a local bank. As part of the bank’s evaluation (interview) process, you have been asked to take an exam that covers several financial analysis techniques. The hiring decision depends on how you would answer the following questions: Part I: TVM Analysis. The first section of the test addresses time value money analysis.John andMaryareayoungcouple, who want to put their finance in order. Boththehusbandandthe wifeare27yearsagoandinstableemployment. They want to manage their savings and earnings to achieve a better return and reduce the risks. You want to help them with their financial planning by answering a series of questions as follows: ThegreatAlbertEinsteinoncesaid“Compoundinterestistheeighthwonderofthe world. He who understands it earns it...he who doesn't...pays it.” Whatisthefuture value of an initial $500 after 30 years if it is invested in an account paying 15 percent annual interest? What is the…
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- You and your colleague, Adam, are currently participating in a finance internship program at Ironworks Railroad. Your current assignment is to work together to review Ironworks’s current and projected income statements. You will also assess the consequences of management’s capital structure and investment decisions on the firm’s future riskiness. After much discussion, you and Adam decide to calculate Ironworks’s degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL) based on this year’s data to gain insights into Ironworks’s risk levels. The most recent income statement for Ironworks Railroad follows. Ironworks is funded solely with debt capital and common equity, and it has 2,000,000 shares of common stock currently outstanding. This Year’s Data Next Year’s Projected Data Sales $60,000,000 $64,500,000 Less: Variable costs 36,000,000 38,700,000 Gross profit $24,000,000 $25,800,000 Less: Fixed operating costs…Cost Planning; The Cost of an MBA; Time Value of MoneyThe motivation for getting the MBA degree has many aspects—the prestige, greater opportunity for promotion, change of occupation, and increase in pay. To focus just on this last motivation, suppose that you are interested in getting an MBA and are studying the various programs in the United States. You want to balance the costs of getting the degree against the future benefits in increase of pay. You have information on the cost of two MBA programs, which includes the costs of tuition, living expenses, and forgone pre-MBA salary for the two years you are in the MBA program. School A has an average cost of $100,000, and school B, a far more prestigious school at which you think your grades would qualify you to be a suc-cessful applicant, has a cost of $250,000. RequiredAssume that you have a 10-year planning horizon, that the difference in pay for a job after both schools would remain the same for all 10 years, and the relevant…Your company, Kitchen Works, is employing the SDLC for its new information system. The company is currently performing a number of feasibility studies, including the economic feasibility study. A draft of the economic feasibility study has been presented to you for your review. You have been charged with determining whether only escapable costs have been used, the present value of cash flows is accurate, the one-time and recurring costs are correct, realistic useful lives have been used, and the intangible benefits listed in the study are reasonable. Although you are a member of the development team because of your strong accounting background, you have questions about whether some costs are escapable, the interest rates used to perform present value analysis, and the estimated useful lives that have been used. How might you resolve your questions?