Finance Answers

12. Explain the documentation required to satisfy ‘standard auditing’ processes of a small to medium business. In your outline include the necessary infrastructure or information requirements to be able to complete this auditing process. (5 Marks)

13. Write a report to indicate the importance of maintaining a ‘real-time’ analysis of a business’s financial position. In your report include the required information to gain this ‘real-time’ picture and the types of common errors that occur in gaining a ‘real-time’ picture of the business’s financial position. (5 Marks)

14. As a manager of a department or business you will be required to produce a number of reports to outline the financial status and operations to the business owner(s). List and describe the types of reports a manager can use to provide this financial information.

2. When planning a financial management approach there are is a number of considerations that have be taken into account. Explain:

a. What information is required to plan and prepare the financial management approach for a business

b. The sources of the information to collect

c. Who you would need to consult


3. Outline an explanation of the following terms in relation an organisations budgetary requirements

g. Data backup and security of systems


4. Explain the ethical consideration you will make to ensure you are compliant and your behaviour is in line with financial legislation:

b. Confidentiality and disclosure requirements.

7. How often should business review financial information against the financial objectives of the business? Give detailed reasons for your response.

8. Outline the methods of monitoring financial performance a manager may use in assessing and reviewing financial information.

9. In reviewing budgetary information it is important to be able to make any changes to ensure the financial objectives are being met. When implementing any changes what are the steps a manager should undertake to ensure the proposed change is the correct one and the teams are informed of the changes?

6. a. Outline the strategies or communication methods a manager could use to ensure the required information on the budget and the implementation of the budget is communicated to the rest of the workplace team. (5 Marks)

b. Include the types of information the team members will need to have access to
.
c. Explain how the manager might investigate any variance against the budget.

Put yourself back in September 1993. Brazilian bond was paying a monthly interest rate of 36.9 percent. U.S. bond was paying monthly interest rate of 0.2 percent. The observed rate of appreciation of dollar against cruzeiro (the currency of Brazil at that time, now its currency is called real) in August was 34.6 percent. If we use this rate as the expected rate of appreciation for September, what are the expected one-month dollar rates of return on U.S. and Brazilian bond, respectively? Does the UIP hold in this case? If not, why?

To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?

To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?

Describe one factor for each of the following and what the impact would be on bond prices and interest rates
1.Increase in supply for bonds
2.Increase in the demand for bonds
3.Decrease in the supply for bonds
4.Decrease in the demand for bonds

I was recently approached by a friend (who I consider highly competent) who is looking for financing to open up a franchise. Lets assume the opportunity generally makes sense. My question is: is there a model/literature/best practice for determining how ownership of the franchise should be determined between me (providing 90%+ of financing) and the operating partner (providing basically management and expertise). Thank you!

BMC is considering upgrading the sound systems in their theaters so that they can patrons can get the full experience from surround sound movies. They discovered that upgrade costs at loca±ons with 12 screens were $170,000 but were $110,000 at loca±ons with six screens. The Fxed costs of upgrading at a loca±on are