Discounting fv - Study guides, Class notes & Summaries

Time Line - Answer--an important tool used in time value analysis -a graphical representation used to show the timing of cash flows Future Value (FV) - Answer-The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate Present Value - Answer-The value today of a future cash flow or series of cash flows Compounding - Answer-The arithmetic process of determining the final value of a cash flow or series of cash flo...

Amortization Schedule Correct Answer A table showing precisely how a loan will be repaid. It gives the required payment on each payment date and a breakdown of the payment, showing how much is interest and how much is repayment of principal. Amortized Loan Correct Answer A loan that is repaid in equal payments over its life. Annual Compounding Correct Answer The arithmetic process of determining the final value of a cash flow or series of cash flows when interest is added once a year. A...

BSNS 114 Exam Questions And Correct Answers With Complete Solution. The main objective in financial decision making is: To maximise the value of the business - more narrow;y by maximising the share value of the company and therefore shareholder wealth. What is the investment decision (Capital budgeting)? Selecting long term assets/projects that will create value for the business What is the financing decision (capital structuring)? Deciding how a business will fund their investment decis...

Future Value - Amount to which an investment will grow after earning interest Compound Interest - Interest earned on interest Simple Interest - Interest earned only on the original investment FV formula? - FV = $100 × (1 + r)^t Present Value - Value today of a future cash flow Discount Factor - Present value of a $1 future payment Discount Rate - Interest rate used to compute present values of future cash flows PV Formula? - PV: Future value after t periods /(1 + ...

File: ch03, Chapter 3: Indirect Investing Multiple Choice Questions 1. Which of the following is not a characteristic of investments companies? a. pooled investing b. diversification c. managed portfolios d. reduced expenses Ans: d Difficulty: moderate Ref: Investing Indirectly 2. In order to avoid paying income taxes, an investment company must: a. be classified as a non-profit organization b. invest only in municipal bonds. c. pass on interest, dividends, a...

MAC3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 12 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us... QUESTION 1 (25 marks; 45 minutes) Lesidi Limited, a company listed on the Johannesburg Stock Exchange (JSE), specialises in manufacturing paint. Their flagship product, Yizo, has been rated the best paint by the South African Paint Association for the past ten years. This top award has driven Lesidi's success and challenged t...

MAC3702 Assignment 2 ( ANSWERS) Semester 2 2024 - DUE 12 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. QUESTION 1 (25 marks; 45 minutes) Lesidi Limited, a company listed on the Johannesburg Stock Exchange (JSE), specialises in manufacturing paint. Their flagship product, Yizo, has been rated the best paint by the South African Paint Association for the past ten years. This top award has driven Lesidi's success and challenged them to innovate continuously to mainta...

Retail securities firm -ANSWER An individual decides to sell corporate bonds to another investor. Which type of financial market or institution would be involved in this transaction? investment banking firm -ANSWER A firm wants to sell new shares of stock. Which other institution is involved in this type of transaction? retail bank -ANSWER A partnership needs funds to purchase technology equipment. It will be able to repay those funds in under a year's time. Which organization should the ...

=FV(rate,nper,pmt,[pv],[type]) - Returns the future value, or the cash balance you want to attain after the last payment is made =IRR(values,[guess]) - Returns the internal rate of return of a series of future payments =NPER(rate,pmt,pv,[fv],[type]) - Returns the number of payment periods in an annuity =NPV(rate,value1,[value2],...) - Returns the net present value of a series of future payments with a given rate =PMT(rate,nper,pv,[fv],[type]) - Returns the payment made each period (this ha...

CFA Level 3 Exam 204 Questions with Answers 2023 bounded rationality - CORRECT ANSWER individuals act as rationally as possible but are constrained by a lack of knowledge and cognitive ability satisfice - CORRECT ANSWER making a reasonable but not necessarily optimal decision the price is right - CORRECT ANSWER asset prices reflect and instantly adjust to all available information weak-form efficiency - CORRECT ANSWER prices inncoporate all past price and volume data semi-strong...