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Questions
1. Please read the chapter titled "Bookend the future" by Dan and Chip Heath from their book "Decisive". What do the authors say about predicting the future?
2. Please review the files "Valuing Rio Corporation" and "Rio Excel file" which relate to the Rio example covered in week 5. Please try to figure out how the various figures were derived. We are going to use this valuation template to value another company: Patties Foods.
3. Please review the financial information of Patties Foods provided in the file "Patties Financials". We used information from this file to fill out parts of the valuation model in the file "Valuation of Patties Foods using Rio template" --- please try to follow how the Rio template was applied to Patties Foods in this file.
4. Please fill out the blank cells (for example, make revenue and cost forecasts etc.) in the file "Valuation of Patties Foods using Rio template" and derive a valuation of Patties Foods per share. Do internet news search and ASX announcement search on "Patties Foods" for dates around the valuation date to get information to make the forecasts. We will go through this valuation exercise in class next week.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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