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Your uncle has always owned several companies and has been very successful despite not studying Finance in university. He has heard about several finance methods to evaluate whether to take on a project or not.
Question (a) Explain to him what the three basic decisions that a financial manager must make when overseeing a company.
Question (b) Explain to him what the ultimate objective of a financial manager is.
Question (c) Explain to him what characteristics the best methods have to determine whether or not to take on a project.
Question (d) Provide an evaluation of four methods against the criteria you provided in part (c )
Question (e) He has heard that IRR is a good method, but has one issue. Identify and explain the issue to him.
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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