Using Internet research, prepare a budget of possible expenses and income to consider for a worker of your choice.

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MODULE SUMMATIVE EVALUATION TASK

Highschool Math

There is a growing need for skilled labour in Ontario. The ability to budget allows workers with their own companies to maximize their income.

Using Internet research, prepare a budget of possible expenses and income to consider for a worker of your choice. Present the content of the mathematical data in the form of tables of values, graphs, etc., and highlight the trends in the resulting data. For these data, note the mathematical concepts associated with them (e.g., maximum values, minimum values, trends/slopes, type of functions). Using the mathematical concepts under consideration, present the results of your work in an infographic.

What debt-to-capital structure would you recommend as optimal for Hill Country Snack Foods? What are the advantages of adding debt to the capital structure? How would issuing debt impact the company’s taxes and expected costs of financial distress? How would the financial markets react if the company increased its financial leverage?

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AF 495 CASE 6 AND 7

 

CASE6

Instructions: Answer all questions below. Make sure to show your work. Your answers must be typed. (TOTAL = 100 POINTS)

Hill Country Snack Foods

1. How much business risk does Hill Country face? How much financial risk would the company face at each of the three alternative debt-to-capital ratios presented in Case Exhibit 4? How much value could Hill Country create for its shareholders at each of each of the three alternative debt levels?

2. What debt-to-capital structure would you recommend as optimal for Hill Country Snack Foods? What are the advantages of adding debt to the capital structure? How would issuing debt impact the company’s taxes and expected costs of financial distress? How would the financial markets react if the company increased its financial leverage?

3. How could Hill Country implement a more aggressive capital structure? What methods could be used to increase debt and decrease equity?

4. Considering Hill Country’s corporate culture, what arguments could you use to persuade CEO Keener or his successor to adopt and implement your recommendation?

 

CASE 7

CASE WRITE-UP 7

Instructions: Answer all questions below. Make sure to show your work. Your answers must be typed. (TOTAL = 100 POINTS)

Jones Electrical Distribution

1. How well is “Jones Electrical Distribution” performing? What must Jones do well to succeed?

2. Why does a business that has profit of $30,000 per year need a bank loan?

3. What drove an increase in Jones’s accounts receivable and inventory balances in 2005 and 2006?

4. Is Nelson Jones’s estimate that a $350,000 line of credit is sufficient for 2007 accurate?

5. When will Jones be able to repay the line of credit?

6. What could Jones do to reduce the size of the line of credit he needs?

7. What are the implications for Jones’ s lifestyle of accepting the new, larger line of credit?

Discuss the results of the financial analysis including savings achievements, future budget modifications, and life impacts that could derail the budget in the coming year.

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Touchstone 4: Analyzing Your Personal Finances

SCENARIO: Three months have passed since you created your first financial plan (i.e., the Unit 2 Touchstone). In that time, your budget has gone through some changes. The good news is that your income has increased because of your strong performance at work. However, health care and miscellaneous costs have gone up along with your earnings. You will need to reallocate your monthly budget based on these changes to see how you’re progressing toward your original savings goal.

While you appreciate numbers and figures, you also know that a strong financial analysis needs visual information. As part of your progress check, you’ve committed to creating a set of graphs that you can share with your financial advisor.

ASSIGNMENT: This assignment has two parts. In part 1, you will analyze personal finance data based on the scenario described above. You’ll use your problem solving and agility skills to balance three monthly budgets, and you’ll use your technology skill to graph the spending allocations in each of them. Finally, you’ll sharpen all three skills as you calculate and graph the progress you’re making toward your original savings goal.

In part 2, you will answer reflection questions about the decisions you made, identify how to create more savings opportunities, and make predictions about life and economic impacts that could affect the future of your plan.

For this assignment, you will:

  • Create three monthly budgets and perform a personal financial analysis using Microsoft Excel.
  • Summarize changes in expenditures between budgets.
  • Show the results of the analysis using appropriate graphs in Excel.
  • Explain how the graph types you have selected will help your financial advisor understand the data.
  • Discuss the results of the financial analysis including savings achievements, future budget modifications, and life impacts that could derail the budget in the coming year.
  • Reflect on what the analysis might reasonably look like in one year, accounting for economic factors such as inflation and the consumer price index.

Download the Excel template below, which further breaks down the steps involved in this assignment. You will return the completed template as your Touchstone submission.

A new computer system will cost a company $250,000 today. It will help reduce expenses by $50,000 per year for each of the next four years. The computer will be depreciated using the MACRS 3 year life class. The tax rate is 29 percent. If the interest rate is,2eloercent, what is the NPV of the proposed computer?

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Finance question, for cash flow estimation

Chapter 7 Problems:

1. A firm is considering a new project. The project is expected to generate sales of 15,0CC units per year. Units will sell at $14 each. Variable costs are expected to be $8 each for the first year, $7 each thereafter. Fixed costs will be $5,000 per year. The machine used to make the products will cost $100,000 to install and will be depreciated over a MACRS 3 year life. The project is expected to exist for exactly four years. Working capital requirements will be $10,000. At the end of the project, the machine will be sold for $20,000. The tax rate is 38 percent What is the NPV of this project if the interest rate is 10 percent?

2. A new process is expected to generate sales of $100,000 in the first year, increasing by 15 percent each year for the following three years. Variable costs are expected to be 29 percent of sales. Fixed costs are expected to be $10,000 per year. Working capital is expected to be 20 percent of the next year’s sales. A fully-depreciated machine to produce our product is already in place in our plant and can be sold for $20,000 today. If the machine is used to make the products, it will be worthless in four years. The project will last four years. The interest rate is 12 percent. The tax rate is 42 percent. What is the NPV of this project?

3. A new computer system will cost a company $250,000 today. It will help reduce expenses by $50,000 per year for each of the next four years. The computer will be depreciated using the MACRS 3 year life class. The tax rate is 29 percent. If the interest rate is,2eloercent, what is the NPV of the proposed computer?

4. A warehouse is currently sitting empty, but can be rented out to a third party for $100,000 a year. A project is proposed in the warehouse by your company which will require an investment of $200,000 and will be depreciated using MACRS over a five year life. At the end of the project in THREE YEARS, the machinery will be sold for $50,000. Products sold will be 20,000 units per year at $30 each. Variable costs will be 35 percent of sales. Fixed costs (not counting the warehouse) will be $20,000 per year. Working capital will be $50,000. The tax rate is 30 percent. If the interest rate is 10 percent, what is the NPV of this project?

Using your work in Part A, create a budget spreadsheet. Include a section for income, a section for expenses, and a section for balance. Insert a picture of your completed spreadsheet.

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Personal Budgeting Real-World Module Project (30 points total)

Directions: Answer all questions in complete sentences and show all work to receive full credit. For all parts, please use $1,502.45 as your bi-weekly net pay. Remember to convert to monthly pay by multiplying the bi-weekly pay by 26 and then dividing by 12. Use the space below to complete the monthly pay calculations:

Part 1: Build a Budget (15 points)
A. (10 points) Using the categories and percentages below, create a monthly budget using the monthly pay you calculated above.

1. Choose a percent within the given range. Make sure when choosing each percent, that the sum of all categories equals 100%. For example, you decide you want to spend 20% of your budget on housing. 20% for housing plus each percent from all other categories will equal 100%.

2. Then, using the monthly pay you calculated above, determine, in dollars, the maximum amount you can spend in each category monthly. (Multiply the monthly pay by your chosen percentage.)
● Housing 25% – 35%: percent chosen =
● Food/Household 10% – 20%: percent chosen =
● Savings 5% – 10%: percent chosen =
● Transportation 15% – 20%: percent chosen =
● Debt 5% – 15%: percent chosen =
● Entertainment 5% – 10%: percent chosen =
● Medical/Personal Care 3% – 7%: percent chosen =
● Giving 5% – 10%: percent chosen =
● Clothing 3% – 5%: percent chosen =
● Miscellaneous 5% – 10%: percent chosen =

B. (5 points) Using your work in Part A, create a budget spreadsheet. Include a section for income, a section for expenses, and a section for balance. Insert a picture of your completed spreadsheet.

Part 2: Finding a Rental Property (10 points)
A. (5 points) Research and find two rental properties. Your rental property may be in any city within the United States. Using the information found for your properties, complete the following chart:

    City, State                                         Rental Property 1                        Rental Property 2

Type of property –
house, apartment,
mobile home, etc.

Number of bedrooms

Number of
bathrooms

Total square footage

Utilities included –
list

Amenities included –
list

Monthly rent

Monthly electric – use
$150 if not included in
rent

Monthly water – use
$65 if not included in
rent

Monthly Total: rent +
electric + water

  • B. (5 points) Using the totals from your completed chart, determine what percent of your monthly net income is spent on housing for each property. Compare the housing percent you chose in Part 1 to the percentages for each property chosen in Part 2.

Part 3: Saving for Rent (5 points)
Choose one of the rental properties from Part 2. Using the dollar amount for savings in Part 1, calculate how many months it will take to have four months of rent saved.

Discuss the significance of valuation methods in private equity settings. Why do venture capitalists use preferred stock? Discuss the major reasons.

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Discussion FIN-421: Small Business Financing

Discuss the significance of valuation methods in private equity settings.

Why do venture capitalists use preferred stock? Discuss the major reasons.

What is the price of the put according to the Black-Scholes equation? Under what circumstances does the investor make a profit? Under what circumstances will the option be exercised?

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Homework AD 717

Week 11

Problem 1.
An investor buys a European style put option. The stock price is $42 and the strike price is $40. The option has ninety days until maturity. The risk–free rate stands at 1.6%, and the volatility of the stock returns is 49%.
a) What is the price of the put according to the Black–Scholes equation?
b) Under what circumstances does the investor make a profit?
c) Under what circumstances will the option be exercised?
d) Draw a diagram showing the variation of the investor’s profit with the stock price at the maturity of the option.
e) Sketch how the value of the option varies with the stock price three months out, one month out, and on maturity

Problem 2.
Traders can use multiple strategies when they are bullish on the stock of a company. Two examples are
(i) writing a put option and (ii) buying a call option. Let us assume the stock does not pay a dividend.
a) Draw the payoff diagram at maturity for the put option and the call option. The put option has a strike price of $40, and it trades for $2. The call option has a strike price of $45, and it trades for $1.
b) List the maximum possible gains and losses for each strategy.
c) If the option is European style, it can only be exercised at maturity. American style options can be exercised at any time. Explain how this affects the strategies of the option seller and of the option buyer.

Conduct Ratio Analysis (Solvency ratios, Efficiency ratios, Profitability ratios) and DuPont identity. Calculate WACC of the company (Bloomberg Terminal).

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FIN415 project

Project FIN 415                       (The last date of the submission is 08/05/2023)

(10 marks)

Guidelines:

  • The assigned company is given in the list below.
  • Information about the sector of the assigned company.
  • Introduction of the company including history, vision, mission, ownership structure, organizational structure, significant achievements in history if any.
  • Financial reports of last three years (Balance Sheet, Income Statement, Cash flow statement).
  • Vertical and Horizontal Analysis.
  • Conduct Ratio Analysis (Solvency ratios, Efficiency ratios, Profitability ratios) and DuPont identity.
  • Calculate WACC of the company (Bloomberg Terminal).
  • Dividend Information (Bloomberg Terminal).
  • Valuation of the Company (Bloomberg Terminal)
  • Z-Score.
  • Future perspectives of the company.

 

Seq. Student No. St.Symbol Short Name Sector
1 201411131 2222 Saudi Aramco Energy
2 201521286 2030 SARCO Energy
3 201611234 2380 Petro Rabigh Energy
4 201711034 4030 BAHRI Energy
5 201811032 4200 ALDREES Energy
6 201811247 2381 ARDC Energy
7 201821452 2083 Marafiq Energy
8 201911013 1201 TAKWEEN Materials
9 201911318 1202 MEPCO Materials
10 201921412 1210 BCI Materials
11 201921449 1211 MAADEN Materials
12 201921459 1301 ASLAK Materials
13 202011010 1304 ALYAMAMAH STEEL Materials
14 202011256 1320 SSP Materials
15 202011310 2001 Chemanol Materials
16 202021432 2010 SABIC Materials
17 202021445 2020 SABIC AGRI-NUTRIENTS Materials
18 202021450 2150 ZOUJAJ Materials
19 202111277 2170 ALUJAIN Materials
20 202111306 2180 FIPCO Materials
21 202211353 4164 NAHDI Food & S
1 201622247 3010 ACC Materials
2 201722225 2200 APC Materials
3 201812015 2210 Nama Chemicals Materials
4 201812202 2220 Maadaniyah Materials
5 201912007 2240 ZAMIL INDUST Materials
6 201912107 2250 SIIG Materials
7 201912178 2290 YANSAB Materials
8 201912192 2300 SPM Materials
9 201912210 2310 Sipchem Materials
10 201912228 2330 Advanced Materials
11 201912241 2350 Saudi Kayan Materials
12 201912250 3001 HCC Materials
13 201922328 3002 Najran Cement Materials
14 202012063 3003 City Cement Materials
15 202012107 3004  NORTHERN CEMENT Materials
16 202012146 3005 UACC Materials

 

 

 

 

 

 

 

 

 

Hashim also bought a oar for P.130 ODD. He also took out a loan for A130 000, at an interest rate of 1846 p.a. compounded moodily. He also made 54 equal payrnen.. However, he started payments one month after the purchase of the em Calculate the total of all Hashim• repayments.

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Finance Question

A photocopier valued at 1124 000 depreciates at a rate of 18% P. as the reducing-balance method. Also how many years seal its value be R.15 000?

A car that costs 15130 000 is advertised in the following way: ‘NO deposit necessary and first payment due three months after date of puAllase ‘ The interest rate quoted is IMA p.a. compounded monMly.

Calculate the amount owing two months after the purchase date, winch Is one month before the …monthly payment is due.

Herschel bought this car on I March 2009 and made his rust payment on daye 2009. Thereafter he made another 53 equal payments on the first f each month

  • Calculate his monthly repayments
  • Calculate the total of MI Herschel’s repayments.

Hashim also bought a oar for P.130 ODD. He also took out a loan for A130 000, at an interest rate of 1846 p.a. compounded moodily. He also made 54 equal payrnen.. However, he started payments one month after the purchase of the em Calculate the total of all Hashim• repayments.

Calculate the difference between Herschel, and Hashim’s total repayments.

RI 930 77 was invested In a fund pap, /46 p a_ compounded monthly. After 18 months the fiord had a value.of RI 711,41. Calculate/. (4)

A father decided to buy &house for his family for R800 000. OR agreed to pay monthly Instals uds of RIO 000 on a loan which messed interest at a rate of 14% pa. compounded monthly The first payment was node at the end of the first month_

  • Show that the loan would be paid off m 239 months_ (4)
  • Suppose the father encountered unenpected mg:lenses and was unable to pay ar% Instahmnts at the end of the 120., 121., 122. and 123. months_ At the end of the 124 month he Increased his payment so as to still pay off the loan m 234 months by III equal monthly paymunts. Calculate the voile of [ha new mstakomt (7)

When a 90-day note with a face value of $100,000 is first issued, Barry purchases it for a yield of 7% per year. He sells it at a yield of 7.4 percent per annum with 60 days to maturity. What is his return?

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Finance practice test

  1. A 180-day T-note with a face value of $10,000 is purchased at a 6% requested yield, calculate the price for the T-note.
  2. When a 90-day note with a face value of $100,000 is first issued, Barry purchases it for a yield of 7% per year. He sells it at a yield of 7.4 percent per annum with 60 days to maturity. What is his return?
  3. If the interest rate is 5% per year, what is the price of a $100 Zero Coupon Bond with a six-year maturity and a face value of $100?