FINC5001_Discipline of Finance_2009 Semester 1_Mid-Semester Formula Sheet
IFSYLLAB
Office Hours: Mondays and Wednesdays 2:00/4:00 p.m.Office Location: Room 311B, Business BuildingPostal Address: Mail Stop 028, UNR, Reno, NV 89557-0016E-Mail: rleal@Phone: (702) 784-6811; Fax (702) 784-1769Home Page: /homepage/rlealSyllabus ContentsSYLLABUS CONTENTS (1)ABOUT THIS CLASS...........................................................................................................................2C ATALOG D ESCRIPTION .........................................................................................................................2W HO S HOULD B E IN T HIS C LASS ?..........................................................................................................2M Y O BJECTIVES (2)GETTING STARTED............................................................................................................................3T HE I NTERNET ......................................................................................................................................3C LASS A CCOUNT ...................................................................................................................................3C OMPUTER S OFTWARE ..........................................................................................................................3L IBRARY R ESOURCES .............................................................................................................................4G ROUP P OLICY ......................................................................................................................................4M AKE -U P AND E XTRA C REDIT P OLICY ...................................................................................................4A CADEMIC D ISHONESTY P OLICY (4)CLASS WORK.......................................................................................................................................4W HAT C AN Y OU B RING TO A I N -C LASS T EST ?........................................................................................4W HAT W ILL B E C OVERED IN E ACH T EST ?..............................................................................................5T HE S TOCK -T RAK A SSIGNMENT . (5)The role of Performance (5)Performance Benchmarks (5)Getting Started with Stock-Trak (5)How to Obtain the Ticker Symbols? (6)You Must Trade Every Week (7)Holdings Requirements (7)Some Suggestions.............................................................................................................................7C LASS A SSIGNMENTS . (8)General Requirements for Class Assignments...................................................................................8C LASS A SSIGNMENTS . (8)Assignment #1: The International Monetary System (8)Assignment #2: FDI (9)Assignment #3: Case Study (9)Assignment #4: Ibbotson Database International Portfolio - Extra Credit........................................9Look for the list of thingsthat you must doimmediately on page 10Third Midterm and Term Paper on Your Country (9)GRADES (10)M IDTERM T ESTS (10)F INAL T EST (10)C LASS A SSIGNMENTS G RADE (10)A TTENDANCE G RADE (11)I NVESTMENT P ORTFOLIO (S TOCK-T RAK) G RADE (11)THINGS YOU MUST DO IMMEDIATELY (11)CLASS SCHEDULE (12)CAVEAT (12)About This ClassCatalog DescriptionFinancing international business operations and investments, financial decision making in the multinational firm, the international monetary system, balance of payments, foreign exchange rates, international financial institutions. Pre-requisite: MGRS 370.Who Should Be in This Class?Finance majors having the appropriate pre-requisites: MGRS 365 (Corporate Finance) and MGRS 370 (Investments). You cannot take this class simultaneously with the pre-requisite classes. If this is your case, you should drop this class. Only COBA graduate students that took BADM 741 are admitted in MGRS 620. If you do not fit into these situations you should see me immediately. No auditing this class is allowed. You cannot take MGRS 365 concurrently with this class.My ObjectivesIn this class we will cover some general and some specific, more technical, subjects. My main objectives are to increase your world awareness and to help you get acquainted with the main trends and tools in the international financial markets. No business today is immune to international events. Besides, it is my personal view, that the media is sometimes biased, either favorably or unfavorably, regarding specific countries. I have observed, from former students in this class, this kind of distorted view about other countries. While it is difficult not to be driven by stereotypes because there is a limit to what we can possibly know about other economies, I believe that a first step to success in international business is an open mind that is not driven by these frequently mistaken stereotypes. Furthermore, the future of this country is inexorably linked to that of its world partners. American investments overseas are increasing, particularly where this country has been a traditional business partner: in Europe and in the Americas. Overseas investments create jobs and prosperity at home and foster an increased understanding between partner nations. As a student of finance you must be prepared to understand and to work with international issues. Chances are that your job will involve international issues or that your personal investments will include international assets.Getting StartedWe will use the textbook by Eiteman, Stonehill and Moffett (Addison-Wesley, 8th ed.). A package with class presentations, sample tests, and other materials will be available at the library on the second week of classes. All slide presentations will be included in the package. You do not need to copy what is presented in class since it will be in the package. I will also make sample tests available and will circulate a “Test Alert” a few classes prior to a test. I am in the process of developing a home page at/homepage/rleal. It already contains some class information and I hope to have all class presentations available for download there soon. The class presentations will also be available at the COBA network on the K drive under the "classdata/mgrs420" directory. You can access the network from any computer in the COBA network.It is strongly recommended that you read a business periodical such as the Wall Street Journal regularly. I will frequently bring news items to class for discussion. You are encouraged to do the same. Other very good sources of international information in finance are the Financial Times, the Economist, and Euromoney. The last two are available at the library.The InternetEvery student must have an e-mail account and must provide it to me by sending me an e-mail by the second week of classes. To obtain an e-mail account: go the UNR helpdesk in room #109 at the Getchell library and take your student I.D. You may also use any other e-mail account from an Internet Services Provider or from your business. During the semester I will send you class-related information, such as test information, through e-mail, and many times only through e-mail. It is your responsibility to check your e-mail often. E-mail does not get lost. Not having received an e-mail message is not an excuse. Some of our class assignments involve researching for information on the Internet. Therefore, you must know how to use an Internet browser such as Netscape’s Navigator© or Microsoft’s Explorer©. The university’s computer center offers introductory Netscape classes. You may obtain information about these training seminars at the UNR help desk. There is a low fee for these classes.Class AccountTo obtain a class account, simply log-on to any computer in any COBA lab. Your login should be "Account", the password should be left blank and the server should be "COBA". You will be taken to a web page. You will be requested to enter your social security number and will be presented with all your accounts and passwords for all of your classes. Please make a note or print all of them. The account information is accurate up to January 15. If you added the class later, you must look for the "request for an account" form available in the hanging folders outside room BB308. You must bring to form to me so I can sing it. Then return the form to the appropriate folder outside BB308.Computer SoftwareI expect you to know how to use basic computer software such as word processors and spreadsheets. It is important that you have a reasonable command of spreadsheet software such as Excel©, Lotus©, etc. If you have difficulties with this, you need to practice on your own. I will not have time to teach you how to use software in class and cannot tutor you on this. It is your responsibility to be able to know how to use spreadsheet formulas and other basic spreadsheet copying and moving operations. Remember that knowing how to use software is important when you are looking for a job. Act now and learn it. You will need spreadsheets for some of our class assignments.We will likely use software that accompanies the Ibbotson© database. I will introduce this database to you when the time comes. It may be available during the semester.UNR offers short training classes for the most commonly used software packages. Please look for information on these classes at the library or at the UNR help desk. The Small Business Development Center on the 4th floor of the Business Building and the Truckee Medows Community College also offer this type of class. Keep in mind that these classes are not free of charge.Library ResourcesYou will be required to use some of the databases in the library in your assignments. You can access the on line library resources at /online.html. For most services you will need to use a computer connected to the UNR network. I.e.: your home computer will not do. Other services are available to the community from any computer. Please refer to the URL provided above for more information. I particularly recommend that you check two databases out: ABI/Inform under Silver Platter and Info Trac. Also, by using NEON, you can have access to Wolfpack, which provides an on-line catalogue of the UNR libraries, and access to other on-line catalogues from other libraries in the county and state and from other universities. I advise you to try all of these resources during the first weeks of classes. You are responsible for knowing how to utilize them.Finally, the library staff at the Business-Government Information Center (BGIC) is very helpful. The BGIC is located on the second floor of the Getchell library. All computer databases are accessible from the computers at the BGIC and they have many resources about international trade and finance.Group PolicyThere are no groups in this class. All activity is individual. All assignments must be done individually. Make-Up and Extra Credit PolicyThere are no make-up tests or assignments. There will be one optional extra credit assignment. If you miss a test, for whatever reason, the final test is the only opportunity to replace the missing grade. The final test is also the only opportunity to replace a low grade. See information about the final test below. Taking the final to replace a grade presents no risk. You can take the final and keep the higher grade if your grade in the final is lower than the grade you are trying to replace.Academic Dishonesty PolicyAcademic Dishonesty and Attendance Policies are strictly observed. Refer to the UNR Catalog. Similar assignments will get a failing grade.Class WorkWhat Can You Bring to a In-Class Test?You may bring to any test a formula sheet on a 4” by 6” index card. You shall also bring a calculator. A financial calculator is not necessary but is recommended. You calculator shall have at least an exponentiation key, such as a x y key, for time value of money calculations. You cannot bring laptop or handheld computers to any test. Consulting your textbook or notes during a test is not allowed.What Will Be Covered in Each Test?Each midterm will cover the material up to that specific test. Prior to the review section I will provide you with more details on the covered material but this is my general policy. Midterms are not cumulative. However, this does not mean that you will not use the material addressed in a previous midterm to solve a subsequent test. The first and second midterms will be in class. The last midterm will be a term paper.The final test is comprehensive and will include everything covered in the class. The final test will consist of 30 multiple-choice questions.For information about test grades see the Grades section of this syllabus.The Stock-Trak AssignmentMy intention with the Stock-Trak assignment is to make you familiar with international investing and with the mechanics of investing in general. Many times, people do not invest simply because they do not know how to start and are afraid to try. Stock-Trak provides you with an opportunity to learn about investing in general and about international investing, in particular. I require that you trade on a number of international types of investments available to everyone here in the US. I hope that this assignment will help you make your own investment decisions better when the time comes.Because of the reasons stated above I require that you trade weekly. I want you to think about your investments regularly. The weekly trading requirement is there to force you to trade. Particularly, it is there to make you sell things that are not working for you. The decision to buy something is usually easier than the decision to sell. Every week you must think about your holdings and about what you need to buy and what and may want to sell. Nevertheless, you have to watch for transaction costs. Stock-Trak is not the cheapest broker around.The role of PerformancePerformance is secondary for me but not irrelevant. You can see this from the grade criteria. To obtain the maximum number of points possible in this assignment you must trade weekly, trade at least 30 times during the semester, and perform all types of trades I specify later in this syllabus. If your performance is below the class benchmark you will be penalized but your grade points will still be high if you did everything else as requested.Performance BenchmarksStock-Trak provides three possible performance benchmarks: the S&P500 index; the class average; and a money market account. You will be penalized on your performance if you finish below the worst performing of these three benchmarks, provided that you did everything else as requested.Getting Started with Stock-TrakStock-Trak is a trading simulation. It allows you to buy, sell or short sell practically any stock listed in an exchange in the US plus mutual funds, ADRs, options, and futures. You have to trade every week during the simulation period. You are required to perform the following transactions: (1) buy and sell stocks of US companies; (2) buy and sell ADRs; (3) buy and sell close-end funds; (4) buy and sell futures; (5) buy and sell calls on stocks; (6) buy and sell puts on stocks; (7) buy and sell open-end mutual funds; (8) buy and sell a foreign stock traded on a foreign exchange (a new Stock Trak feature).You need to read and understand the trading rules for Stock-Trak. They are clearly explained in their home page. Their URL is . Registration materials will be provided on the second week of class. You need register and pay $17.95. Pick a password for your account and make a note of it. In the registration form field for your class write UNR-420. Trading begins on February 9 and ends on May 1. You may place up to 100 trades. Your initial wealth is $500,000. You do not need to sell all your holdings at the end of the trading period. The only way to place trades for this class is through Stock Trak's home page. You cannot use the phone or fax anymore. All trades must be placed before 4 p.m. ET to be considered for that day, if placed after that time it will be executed at the closing price of the next day. You can access your account, after you register, by using the Stock Trak home page. Pay special attention to trading with options and futures. There are special trading rules for them. Read the instructions carefully.There are many resources about investments both on the Internet and at the library. Start with companies that you know. Think of countries that you would like to invest in and try to learn which companies from these countries trade in the US. There is always a mutual fund, closed or open end, which trades on shares from that particular country or region of the world. Do the same about funds targeting specific industries or classes of assets. You can also trade on fixed income funds, both closed and open end.The Ohio State University finance home page is a great place to start. You can check their resources for investors section. The URL is /dept/fin/cern/cerninv.htm. Explore. You should also use the library resources. Value Line is a publication that analyzes many companies, domestic and international. Info Trac has analysts’ reports on countless companies. Edgar is the SEC’s system has all the filings information. Morningstar has information about mutual funds. Look for the business librarian to get you started.To learn more about Depositary Receipts look into Bankers Trust’s web site. Their URL is/ms/dreceipt/depover.htm.How to Obtain the Ticker Symbols?For stocks traded on the New York Stock Exchange (NYSE), the American Stock Exchange (ASE), and on NASDAQ the ticker symbols are listed under “sym” daily on the Wall Street Journal. The stocks listed under all of these exchanges include domestic and foreign stocks, closed-end mutual funds, and American Depository Receipts (ADRs). You have to know a priori if a stock is an ADR or not, a closed-end fund or not. A place where you can obtain quotes and ticker symbols is QuoteCom. Their URL is. But there are others. Check CheckFree as well at /cgi-bin/qs.Closed-end fund stocks trade like a regular corporate stock. There are many funds that trade on NYSE, ASE, and NASDAQ. To learn what are the closed-end funds available and their ticker symbol, you should check the Monday edition of the Wall Street Journal. It brings a special session with all the closed-end funds listed according to their investment categories and with their ticker symbols in parenthesis. The Closed-End Funds section is published every Monday in section C of the Wall Street Journal.I have compiled a list with the US exchange traded ADRs and their ticker symbol. This file is in my home page at /homepage/rleal/adr.html. You must use it to obtain the ticker symbols for ADRs. To download a text file with lots of information about DRs traded in the US and around the world, including their ticker symbol, go to /ms/dreceipt/universe.htm. My ADR list was based on this file.To trade on futures or options, you must follow Stock-Trak’s rules for the ticker symbols. Please refer to their home page to learn more. Stock-Trak uses their own ticker symbols for futures and options. So, you must learn how to obtain them by carefully reading the instructions in their home page.To trade on open-end mutual funds, you must know the exact name of the fund. Stock-Trak will provide the ticker symbol.You Must Trade Every WeekNo excuses for not trading on a given week will be accepted. You can trade from anywhere over the web. You are responsible for trading every week. Keep in mind that technical glitches may occur on the part of Stock-Trak. Therefore, do not leave all your trades of the week for the last trading hour on Friday. Something may go wrong and you will end with no trades for that week. Plan your trades for the week and execute them by Wednesday so that there is time to confirm that the trades went through and to fix any trading problems you may have.Holdings RequirementsYou can invest in anything you want provided that you abide to one simple requirement regarding your holdings: at least 20 of your trades have to be on non-US assets, such as an ADR, a country closed end fund, an international open end fund, non-US traded foreign stocks, or futures and options on foreign assets.Some SuggestionsNever forget to trade every week. Do not use a lot of trades immediately. Remember that you have a total of 100 possible trades for the semester and that you must use at least 30 of them. Leave a few trades as a reserve to fix any problems with your account. If you use all your trades soon, you are finished for the semester and will not be able to trade every week. This will mean a failing grade in this assignment.You do not need to execute all the required transactions at once. You should take care of them as the semester proceeds and as we cover some of the subjects relating to these transactions. I believe that you are ready to trade on mutual funds and stocks. Maybe you should wait until we cover options and futures to trade on these. It is up to you when you execute a required trade. The only requirement is to have all required trades executed by the end of the semester.If, at the end of the semester, your performance seems hopeless you may want to take a gamble on futures. Keep in mind that these contracts are highly leveraged and may worsen your position dramatically if you trade on a large number of contracts and take a loss. Therefore, only trade on a substantial amount of futures contracts as a last resort gamble and after you have performed all the requirements for this assignment. Your losses may be so severe that you may be out of the game entirely. On the other hand, it may be your last chance to salvage a hopeless position.One final word about futures. One futures contract usually involves a fairly large position. Futures are not like stocks. One hundred futures contracts may represent a position worth many million dollars. You do not pay all that to enter the position but your gains and losses are computed relative to the notional value of the position. Be very careful trading with futures. Students in previous classes have not paid attention to this and bought large amounts of futures contracts only to lose everything and sit on the sidelines for the remainder of the semester. Be sure you know what you are doing when you trade on futures.Class AssignmentsGeneral Requirements for Class AssignmentsEvery class assignment has to be delivered on time at the beginning of the class for which it is assignment. Late assignments will not be accepted, no exceptions. If you know you are not going to be present to a class in which an assignment is due you can turn it in before that class at any time or you can have it faxed to me before the class begins. No assignments will be accepted by e-mail.I expect every assignment to be typed on a word processor. No handwritten assignments will be accepted. All class assignments must be prepared in a professional manner.As a general formatting rule, class assignments must be clearly printed on letter sized paper, on font size 12 and single-spaced. Margins should be 1” top and bottom and 1.25” left and right. The number of pages will vary per assignment. Your name must be on the top of the first page together with the title of the assignment and the pages must be numbered.Class AssignmentsEvery student in the class will be assigned to a particular country. I am providing you with a list of countries in this syllabus. You should give me three countries you would like to be assigned to. I will make the assignments myself and will try to accommodate your preferences. However, there will be conflicts since some countries will be chosen by more than one person. I will do my best to assign you to one of your countries of choice. If that is not at all possible, I will contact you. Countries will be assigned on a first come first served basis. You must send me your preferences by February 9 by e-mail only, so I have a record of who asked for what first. One additional thing: you cannot choose countries in which you have lived in. The goal is that you learn about a country that you are not too familiar with. The list of countries you can choose from is below. They are the thirty-two largest economies in the world after the US, according to the World Bank, and are shown ranked by their economy size.1.China2.Japan3.Germany4.India5.France6.Italy8.Brazil 9.Indonesia10.Russia11.Canada12.Mexico13.Spain14.South Korea15.Thailand16.Iran17.Turkey18.Australia19.Taiwanherlands21.Pakistan22.Argentina23.Egypt24.Colombia25.Belgium26.South Africa27.Poland28.Philippines29.Switzerland30.Austria31.Sweden32.DenmarkYou will be requested to do things related to your country of choice during the semester in different assignments. Basically you will have to follow what has been going on in that country. The library has some country reports on virtually every country in the world. Go see the business librarian and get the most recent report to learn more about your country. Other specific assignments using your country of choice will be explained elsewhere in this syllabus.Assignment #1: The International Monetary SystemVisit the home pages of the World Bank (), IFC (), IMF (), and of the Bank of International Settlements (). Write a 2-page report addressing what the main goals and components of these organizations are; what their current projects seem to be, and how do they fit in the International Monetary System. Try to find out projects related to your country of choice (see above) and what role your country of choice has in the governance of each one of these international organizations. This assignment is due on Feb. 2, 1998 at the beginning of the class.Assignment #2: FDIFor your country of choice, try to find out about foreign direct investment. This is investment in real productive assets, such as plants, patents, property as opposed to investments in financial assets. Find out what are the main countries investing in your country of choice and how important is US investment in that country. List, if possible, the main foreign corporations, American included, active in that country. Try to find out any major limitations to foreign investment imposed by your country of choice and the reason for them. The country reports and other resources available at the BGIC, such as ABI/Inform and the Wall Street Journal Index, may be very helpful with this assignment. This assignment is due on Feb. 9, 1998 and should be two pages long.Assignment #3: Case StudyThis assignment is based on the Lufthansa case study on page 220 in your textbook. Answer the questions at the end of the case. Present any calculations you make. The write-up should be two pages long. This assignment is due on March 9, 1998.Assignment #4: Ibbotson Database International Portfolio - Extra CreditThis assignment will be provided to you later in the semester. This assignment is due on April 27, 1998. Third Midterm and Term Paper on Your CountryDuring the semester you must follow what has been going on in your country of choice. Everything may be important: political and social events, economic changes and information, etc. The term paper must provide a brief overview of recent political and economic events and a report on the latest major events. You must provide an analysis of your country of choice having in mind how attractive the country looks for foreign investment. The whole focus of your paper shall be investment, both direct and in the securities markets of the country. Your assessment of the countries outlook and attractiveness is the most important part. The International Financial Statistics published by the IMF is available at the library. It contains balance of payments information. You must provide a brief assessment of the balance of payments situation in your country to aid your analysis. I expect the report to contain at least the following parts:1.Recent Political and Economic Events2.FDI Policies and Profile3.American FDI in your country4.The Financial Markets5.Outlook for FDI and InvestorsThe report should have at least ten pages. Please cite all your references correctly. Use the Chicago Manual of Style norms for citations (available at the library).The term-paper is due on May 11, 1998 at 4:30 p.m.。
2009年中国工商银行CFA二级培训项目
10 5--10594䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Published “Security Analysis”(1934): 4 approaches to determine the value of a security based on an analysis of the firm’s income statement and balance sheet.¾Fourth edition of “Security Analysis”(1962): the analyst should estimate a stock’s intrinsic value independent of its market by multiplying earnings power by an appropriate capitalization factor.¾According to Graham and Dodd, investment involved purchasing an asset that was trading at or around its intrinsic value, and the concept that earnings power should provide a “margin of safety”.1. Benjamin Graham and David Dodd’s workLOS 33595䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU2. John Burr Williams’work¾Published “The Theory of Investment Value”(1938)¾Advancing the notion that the value of a stock could be determined by discounting future dividend ¾1962, the modern dividend discount and free cash flow models came outTherefore, the work of these three men forms the framework of fundamental equity analysis.LOS 33Equity InvestmentsReading 34: The Equity Valuation ProcessLOS a.define valuation and discuss the uses of valuation models;b.contrast quantitative and qualitative factors in valuation;c.discuss the importance of quality of inputs in valuation;d.discuss the importance of the interpretation of footnotes to accounting statements and other disclosures;e.calculate alpha;f.contrast the going-concern and non-going-concern assumptions in valuation;g.contrast absolute valuation models to relative valuation models;h.discuss the role of ownership perspective in valuation.598䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDUThe Equity Valuation Process -Framework 1.Valuation2.Quantitative and Qualitative factors in valuation3.Quality of inputs4.Footnotes of accounting statements and other disclosures5.Alpha6.Assumptions7.Models8.Perspectives599䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU1. Valuation¾Definition : estimation of an asset’s value1.based on variables perceived to be related to future investment returns, or2.based on comparisons with closely similar assets ¾Objectives1.Selecting stock2.Estimating market expectations3.Evaluating corporate events4.Fairness opinions5.Evaluating business strategies and modelsmunication among management, shareholders, and analysts7.Assessment of private businessLOS 34.a¾Valuation in portfolio managementplanning, execution and feedback ė3 steps in the portfoliomanagement process (valuation is most closely associated with the planning and execution steps)1.Planning9identification and specification the investment objectives andconstraints ėwriting detail on the investment strategy of securities selection9Valuation on individual security is not apply to Indexing strategybut active management.2.Execution9Portfolio selection9Portfolio implementation 3.Feedback1. ValuationLOS 34.a ¾Valuation process1.Understanding the business;9Industry structure;9Relative competitive position with the industry;9Competitive strategy;9Execution of strategy.2.Forecasting company performance;9Economic forecasting;9Financial forecasting.3.Selecting the appropriate valuation model;9Absolution valuation model;9Relative valuation model.4.Converting forecasts to a valuation;5.Making the investment decision.1. ValuationLOS 34.a602䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU2. Quantitative and qualitative factors in valuation¾Quantitative factorskey source from company’s accounting information and financial disclosuresincluding: balance sheet, income statement, cash flow statement,as well as the footnotes¾Qualitative factorspurpose: to measure industry performance, such as legal and regulatory environmentincluding: quality of the firm’s management team; the transparency of its performance; the analyst’s confidence in the firm’s; industry’s accounting practicesStep 2603䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU3. Quality of inputs¾Quality of inputsanalysts can forecast firm’s future economic value based on current facts¾Requirementthe financial factors must be disclosed in sufficient detail and accuracy the investigation of issues relating to accuracy is often broadly referred to as quality of earnings analysis, namely the scrutiny of all financial statementsStep 24. Footnotes of accounting statements and other disclosuresCategory ObservationExampleRevenues and gainsRecognizing revenue early Accelerating or premature recognition of incomeReclassifying gains and non-operating incomeExpenses and lossesDelay of recognition of expensesExpense recognition and losses Amortization, depreciation, and discount ratesBalance sheet issuesOff-balance-sheet issuesSPEsLOS 34.d ¾Indicators of selected quality of earnings 5. Intrinsic value and alpha¾Intrinsic value is the value of an asset give a hypothetically completeunderstanding of the assets’investment characteristics. Valuation is a part of the active manager’s attempt to production positive excess return.¾Alpha,an excess risk-adjusted return, also called an abnormal return ¾Formula :ex ante alpha = expected holding period return –required return ex post alpha = actual holding period return –contemporaneous required return ¾the difference between intrinsic value (V) and market value (P) ėperceive mispricing ėbecomes part of the manager’s forecast of expected return ėinfluence the total return on the asset ėnamely influence alphaLOS 34.e606䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU6. Assumptions in valuation models¾A company has one value if it is immediately dissolved, and another value if it continues in operation.¾Going-concern assumptionIt is based on the assumption that the company will maintain its business activities into the foreseeable future.going-concern value of the company is the value under a going-concern assumption ¾Non-going-concern assumptionNon-going-concern value is based on the assumption that the company will finish operating and all assets will be sold out.Also called liquidation value due to liquidation should be concerned in this assumption ¾going-concern value ˚liquidation value607䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU7. Types of valuation models¾The two board types of going-concern models of valuation are:Absolute valuation models; and Relative valuation models ¾Absolute valuation modelsthe model that specifies an asset’s intrinsic value which is inorder to be compared with the asset’s market price (does not need consider about the value of other firms). Two types:9Present value model or discounted cash flow model•DDM•FCF model•Residual income model9Asset-based model: sometime is used to value the company that own or control natural resources, such as oilfields, coal deposits and other mineral claims¾Relative valuation models (method of comparable)the model that specifies an asset’s value relative to that of another assetIt is typically implemented using price multiplesFor example: P/E1<P/E2 ėstock is relatively undervalued7. Types of valuation modelsLOS 34.g 8. Issues in valuation model –ownership perspectives¾Criteria for selecting a valuation modelConsistent with the characteristics of the company being valued; Appropriate given the availability and quality of data; andConsistent with the purpose of valuation, including ownership perspective.¾Ownership perspective influence the choice of valuation approach in 3 aspects:Control premiumsMarketability discounts Liquidity discountsLOS 34.h610䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU8. Issues in valuation model –ownership perspectives¾Control premiumsthe ability of controlling ownership position in the company & can determine how the assets of the firm are deployed and financed by making operating and financing decisionthe strong controlling power ėthe shares are more valuable ¾Marketability discountsThe price of non-publicly traded stocks will be discounted due to they can not be as freely traded in a timely manner ¾Liquidity discountsLack of liquidity = lack of marketabilitySuch as the non-publicly-traded shares or the size of the position in relation to its normal trading volume ėthe price will be discountedLOS 34.h611䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDUEquity InvestmentsReading 35: Equity: Market andInstrumentsLOSa.explain the origins of different national market organizations;b.differentiate between an order-driven market and a price-driven market, and explain the risks and advantages of each;c.calculate the impact of different national taxes on the return of an international investment;d.discuss the various components of execution costs (i.e., commissions and fees, market impact, and opportunity cost) and explain ways to reduce execution costs, and discuss the advantages and disadvantages of each;e.describe an American Depositary Receipt (ADR), and differentiate among the various forms of ADRs in terms of trading and information supplied by the listed company;f.explain why firms choose to be listed abroad and calculate the cost tradeoff between buying shares listed abroad and buying ADRs;g.state the determinants of the value of a closed-end country fund;h.discuss the advantages of exchange-traded funds (ETFs) and explain the pricing of international ETFs in relation to their net asset value (NAV);i.discuss the advantages and disadvantages of the various alternatives to direct international investing.Equity: Market and Instruments -Framework 1.Stock exchange basic types 2.Two different markets 3.Tax aspects 4.Execution costs5.Alternatives to direct international investing614䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU1. Stock exchange basic types¾There are 3 types of stock exchanges:Private bourses; Public bourses; and Bankers’bourses¾Private boursesPrivate bourses are established by private individuals and entities for the purpose of securities tradingThere are several private stock exchanges within a country, and they may compete with each otherMixture public regulation (government supervision) and self-regulation Developed from and directly influenced by British exchanges Most popular model today615䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU1. Stock exchange basic types¾Public boursesPublic bourses are public institutions, with brokers appointed by the government and enjoying a monopoly over all transactionsThe brokerage firms gain the fixed commissions, which regulated by government officialNowadays, most public bourses have shifted to private bourses ¾Bankers’boursesIn some countries, the banks are the major, even are the only securities tradersBankers’bourses may be either private or semipublic organizations Usually, they are regulated by government, but sometimes tradingtakes place directly between banks without involving the official bourse at allIn 1990s, most bankers’bourses had developed into private bourses2. Two different markets DifferentiatingFactorsOrder-Driven Market Price-Driven MarketDefinitionAll trades are entered into acentral order book, and neworders are matched with limit orders previously submittedMarket makers stand ready to buy and sell at listed prices Market makers publicly postbid-ask prices to encourage orders MarketsParis Bourse, Frankfurt XETRA, Tokyo Nikkei U.S. NasdaqTypeContinues marketPeriodic call markets to improve liquidityContinues marketTrades occur anytime the market is openElementsElectronic order drivenCentral order book maintainsall limit orders postedAutomated system posts firm quotes by market makers LOS 35.b 2. Two different marketsDifferentiatingFactorsOrder-Driven Market Price-Driven MarketAdvantageTraders view all standingorders, and trades areexecuted via the central orderbookTraders can monitor andprovide liquidity at lower cost High speed and low cost of tradingLittle human intervention Efficient system for small security tradesPurchases are made at the lowest offering price, and sales occur at the highest bid price More efficient for large block trades LOS 35.b618䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU2. Two different markets DifferentiatingFactorsOrder-Driven MarketPrice-Driven MarketDisadvantageTrades quickly due to lack of market depthLack of developed marketmaking requires placing market orders as opposed to limit orders (transparency risk)Both expose traders to the risk of getting “picked off ”or forced to trade at an unattractive priceNo centralized book of limit ordersMarket maker does not know what trades will be generated when posting a quote, which reduces the anonymity of the trade619䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU3. Tax aspects¾Foreign investment may be taxed in 2 locations: investor’s country and investment’s country;¾Taxes are applied in 3 areas:Transaction;Capital gain; and Income.¾Transaction taxestransaction taxes are taxes imposed on tradesMarket makers are usually exempted from these taxes when they trade for their own accountsMost countries have eliminated, or drastically reduced the transaction taxes¾Capital gains taxesCapital gains are taxed in the country where the investor resides Domestic and international investments are taxed the same way¾Income taxThere are the conflict of jurisdiction existed between the two countries The international convention on taxing income is to make certain that taxes are paid by the investor in at least one country, which is why withholding taxes are levied on dividend paymentsThe home country taxes the gross amount of the dividends but gives the investor a tax credit equal to the foreign country withholding ėthe investor pays the percentage tax rate that applies in the investor’s home country ¾With international tax treaties, double taxes between the countries are avoided.3. Tax aspectsLOS 35.c 4. Execution costs¾Execution costs also can be referred to the transaction cost, which includes tangible and intangible trading costs. The costs would reduce the expected returnreduce the benefits from diversification.¾Execution costs compriseCommission, fee and taxes; (tangible costs) Market impact; and (intangible costs)9the difference between the actual execution price and benchmark priceOpportunity costs (intangible costs)9the loss or gain incurred as the result of delay or failure to complete an individual trade¾There is a cost tradeoff between market impact and opportunity costThe slower an order is complete ėhigher opportunity costs, but the market impact cost is lowerExecuting large orders ėhigher market impact costs, but opportunity cost is lowerLOS 35.d622䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU4. Execution costs¾Comparison of 3 execution costs Commissions, fees andtaxes Market impact Opportunity cost paid to brokers for the services Negotiatedexplicit and easily measurable Soft dollarthe size of the impact depends on the order size, market liquidity, and desired execution speed the bid-ask spread is the largest component of the market impact cost in a price-driven markethigher for institutional investors, especially the immediacy tradingare significant for investors usingcrossing networks or order-driven systemnon-execution may lead to high costs sincefailure to fulfill the order can leave the portfolio manager without the security623䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Approaches to reduce execution costs (for large trade)Program trading: managers offer simultaneously a basket of securityfor sale rather than trading stock by stockInternal crossing:managers will attempt to execute the oppositeorder with another client for the same securityExternal crossing:managers use an electronic crossing network(ECN), which matches buy and sell market ordersPrincipal trades:managers find a dealer who acts as a principal totake the opposite side of the order for a firm priceAgency trades:the fund manager finds a broker, who tries to get thebest price. Namely, this broker has ability to reduce total execution costs and the search for the best execution is delegated to the managerIndications of interest (IOI):includes dealers who search the marketfor counterparties willing to engage in an opposing tradeFuture contract usage:managers use future to hedge the risk ofdelay in execution of the large trade4. Execution costs4. Execution costs¾Advantages and disadvantages of the approachesLOS 35.d Approach Advantages DisadvantagesProgram trading less riskysmaller bid-ask quoted higher market impact costs Internal crossing minimizes execute cost non-execution riskExternal crossinglower execution costs assured anonymous It takes long time before an opposite order is entered. Exposed to opportunity cost.Principal trades Assured tradinglower opportunity cost large entire execution cost less anonymity Agency tradesthe best execution minimize the conflictbetween opportunity cost and market impact cost higher commission paid less anonymityIOI low execution cost less anonymity Future contractusagelower opportunity costadditional risk5. Alternatives to direct international investing ¾American Depositary Receipt (ADRs) –conceptForeign shares are deposited with a U.S. bank, which in turn issues ADRs in the name of the foreign company.To avoid unusual share prices, ADRs may represent a combination of several foreign shares; Types9Unsponsored ADR:an ADR program created without the company’s involvement 9Sponsored ADRan ADR program created with the assistance of the foreign companyLOS 35.e626䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Classification of sponsored ADRs.Level Ithe company does not comply with SEC registration and reporting requirements, and the shares can be traded only on the OTC market (but not NASDAQ) ėcan raise capital in the U.S., but it must be done through a private placement Level IIthe company registers with SEC and complies with its reporting requirements. The shares can be listed on an official U.S. stock exchange (NYSE, ASE) or NASDAQ Level IIIthe company’s ADRs are traded on a U.S. stock exchange or NASDAQ and the company may raise capital in the United States through a public offering of the ADRs5. Alternatives to direct international investing627䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Motivations for listed aboardBroader diversificationBroader capital markets exposure Additional advertising opportunitiesConcern over take-overs by domestic competitors is minimized by global diversification of the company’s shares ¾Domestic purchase or ADRsPrice levels, transaction costs, taxes and administrative costs should be major determinants of whichever market the invest chooses. Reading page 79, example 7.5. Alternatives to direct international investing¾Closed-end country fund -concepta closed-end fund that invests in stocks from a single country Motivation9simple way to access the local market and benefit from international diversification9Some countries traditionally restricted foreign investment Closed-end fund market price = NAV + premium, or ( –discount);5. Alternatives to direct international investingLOS 35.g ¾Determinants of value of closed-end country fundForeign investment restrictions:9The stricter the restriction, the higher the premium;9If lift foreign investment restriction, the premium on a local-country fund dropsVolatility of the country fund:9The volatility of premium is larger than that of NAV in developed country funds;9Volatility results that closed-end country fund less attractive toinvest in developed countries. buy open-end funds or buy a portfolio directly on the foreign market in order to avoid the additional volatility of closed-end country fundsCorrelation with U.S. markets:9it was proved that the pricing of country closed-end funds listed in the U.S. are often strongly correlated with U.S. stock market 9the market prices react slowly to changes in NAV ėboth areconsistent with market inefficiency ėneed develop the behavioral finance models to explain.5. Alternatives to direct international investingLOS 35.g630䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Exchange traded funds (ETF)Open-end fund with special characteristics and it traded on stock market;It usually indexing;Allow redemption in a basket of securities or in cash based on NAV. For international ETFs, the effect of non-overlapping time zonesshould be taken into account when comparing the ETF price with NAV. (see example 9 in page 85 of readings)5. Alternatives to direct international investingLOS 35.h631䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU5. Alternatives to direct international investing LOS 35. h& iInstruments AdvantagesDisadvantagesADRseasy and direct approach to invest in some foreign companies lower execution costlimited number of companies have issued ADRsMore costly than directinvestment in foreign market.Closed-end countryfund simple way to accessforeign markets no need to worry aboutredemptionsInferior substitute for direct investment in foreign stock markets.ETFefficiency internationaldiversification for individuals Liquidity with lower cost tax efficiencypractice in active asset allocation strategies not benefits for large institutional investors ¾Comparison of alternatives of foreign investing Equity InvestmentsReading 36: Return ConceptLOSa.distinguish among the following return concepts: holding period return, realized return and expected return, required return, discount rate, the return from convergence of price to intrinsic value (given that price does not equal value), and internal rate of return;b.explain the equity risk premium and its use in required return determination, and demonstrate the use of historical and forward-looking estimation approaches;c.discuss the strengths and weaknesses of the major methods of estimating the equity risk premium;d.explain and demonstrate the use of the capital asset pricing model (CAPM), Fama–French model (FFM), the Pastor–Stambaugh model (PSM), macroeconomic multifactor models, and the build-up method (including bond yield plus risk premium method) for estimating the required return on an equity investment;e.discuss beta estimation for public companies, thinly traded public companies, and nonpublic companies634䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDULOSf.analyze the strengths and weaknesses of the major methods of estimating the required return on an equity investment;g.discuss international considerations in required return estimation;h.explain and calculate the weighted average cost of capital for a company;i.explain the appropriateness of using a particular rate of return as a discount rate, given a description of the cash flow to be discounted and other relevant facts.635䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDUReturn Concept –framework 1.Return concept;2.Equity risk premium;3.Required return on equity;4.Weighted average cost of capital;5.Selecting appropriate discount rate in relation to cash flow.1. Return concepts¾Holding period returnHolding period return is the return earned from investing an asset over a specified time period. The formula:Annualized HPR.¾Realized and expected returnRealized return is the same with HPR. It is backward-looking context. In forward-looking, an investor can form an expectation concerning the dividend and selling price and thereby have an expected return .LOS 36.a return on appreciati price yield dividend 1000P P P P D P P D r H H H H 1. Return concepts¾Required returnIt is the minimum level of expected return that an investor requires in order to invest in the asset over a specific time period, given the assets’riskiness. It represents9the opportunity cost for investing in an assets;9A threshold value for being fairly compensated for the risk of the asset.9If investor’s expected return > required return, the asset is undervalued; and vice versa.Expected alpha (ex ante alpha), is the difference between expected return and required return.9Expected alpha = expected return –required return.Realized alpha = actual HPR –contemporaneous required return.LOS 36.a638䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU1. Return concepts¾Discount rateIt is rated used in finding the PV of a future cash flow;It used to determine the intrinsic value depends on the characteristics of the investment rather than that of purchaser;¾Internal rate of return (IRR)An IRR computed under the assumption of market efficiency has been used to estimate the required return on equity.639䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU1. Return concepts¾Expected return estimates from intrinsic value estimatesWhen a asset is mispriced, price of assets converges to its intrinsic value in a period time. The investor’s expected rate of return comprises:9Required return; and9A return from convergence of price to value.Where,Vo, there intrinsic value of the stock;Po, the current price of the stockr T ,required return during the convergence time period0)(P P V r R E T|2. Equity risk premium¾The equity risk premium is the incremental return (premium) that investors require for holding equities rather than a risk-free asset.Required return on equity = Current expected risk-free return+ Equity risk premiumRequired return on share i = Current expected risk-free return+˟i (Equity risk premium)Required return on share i = Current expected risk-free return+ Equity risk premiums Other risk premium/discounts appropriate for I ¾2 board approaches are used to estimate the ERPHistorical estimate; and Forward-looking estimate.LOS 36.b 2. Equity risk premium¾Historical estimate –conceptual frameworkUse the mean value of differences between index return andgovernment debt return (risk free return, RFR) over selected period; Issues in historical estimate9Select an appropriate index. An index is frequently adjusted. In driving the return, it should be stationary.9Time period. The longer the period used, the more precise the estimate. Precision is irrelevant to splitting into sub-periods.9Arithmetic mean or geometric mean in estimating the return;9Long term bond or short tem bill is an appropriate proxy for the risk-free assets.9Adjustments are usually made to the historical estimate.LOS 36.b642䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Historical estimate –Arithmetic return or geometric return?Arithmetic mean of return is in a sing period context while the geometric mean of return is in multiple period context;The ERP with arithmetic return is usually higher than that with geometric return. But in practice 2 returns are widely used. Arguments for using arithmetic return9It is a single period concept. And most of financial models, such as CAPM, are in single period context.9Statistical argument. The unbiased estimate of the expected terminal value of an investment is found by compounding forward at the arithmetic return.Arguments for using geometric return9It is a multiple periods concept and discounting method is also in multiple context.9Do not introduce bias in calculating of terminal value. The using of geometric return is increasing.643䓉䄖㎕䓵➺➺⭥㵗㧌CopyRight 2009By GFEDU¾Historical estimate –long term or short term risk free return?In choice of proxy for RFR, return on long term bond or short term bill should be considered;The ERP relative to bond is usually lower than that to bill due to normal upward sloping yield curve.The ERP relative to bond produce a more plausible required return in a context of multiple period valuation.In calculating ERP, we should match the duration of RFR measure to the duration of the asset being valued. If the investment is short term, ERP relative to bill could be used.If current YTM on a long term government bond is used to calculate the ERP, we should consider:9The current YTM only reflect current inflation expectation;9Current YTM might be mitigated by liquidity issue.2. Equity risk premium¾Historical estimate –adjustmentsAdjustments are usually made to historical estimate on ERP. There 2 types of adjustments:1.To offset the bias resulting from a series of data being used;2.Take account of an independent estimate; Issues in regarding with adjustments9Survivorship bias. Poor performing companies are removed from index. That results the over-estimate return on index and the ERP. Downward adjustment is used to offset the bias.9Un-expected positive or negative event (outlier) will distort the return on index.LOS 36.b 2. Equity risk premium¾Forward-looking (Ex ante) estimate –conceptual frameworkERP is based on expectations for economic and financial variables from the present going forward. It is logical to estimate ERP directly based on current information and expectation.It is not subject to the issues such as non-stationary or data series in historical estimate. But it is subject to potential errors related to models and behavioral bias. 3 approaches9Gordon growth model (GGM) estimate;9Macroeconomics model estimate; and 9Survey estimate.LOS 36.b。
2009 F-3_B_ Class Questions Preview
Financial Accounting & Reporting 3(B)Class Questions1. CPA-00265A company has adopted Statement of Financial Accounting Standards No. 115, Accounting for CertainInvestments in Debt and Equity Securities (as amended by SFAS 130).It should report the marketableequity securities that it has classified as trading at:a. Lower of cost or market, with holding gains and losses included in earnings.b. Lower of cost or market, with holding gains included in earnings only to the extent of previouslyrecognized holding losses.c. Fair value, with holding gains included in earnings only to the extent of previously recognized holdinglosses.d. Fair value, with holding gains and losses included in earnings.CPA-00265 ExplanationChoice "d" is correct. Trading securities are reported at fair value, with holding gains and losses includedin earnings.Choice "a" is incorrect. SFAS 115 eliminated the lower of cost or market valuation.Choice "b" is incorrect. SFAS 115 eliminated the lower of cost or market valuation.Choice "c" is incorrect. Trading securities are reported at fair value but there is no restriction on therecognition of holding gains.2. CPA-00273Information regarding Stone Co's available-for-sale portfolio of marketable equity securities is as follows:Aggregate cost as of 12/31/X2 $170,000Market value as of 12/31/X2 148,000Net realized gains during 20X2 30,000At December 31, 20X1, Stone reported an unrealized loss of $1,500 to reduce investments to marketvalue. This was the first such adjustment made by Stone on these types of securities. According toSFAS No. 115, in its 20X2 statement of comprehensive income, what amount of unrealized loss shouldStone report?a. $30,000b. $20,500c. $22,000d. $0CPA-00273 ExplanationChoice "b" is correct. Stone must report a net cumulative loss on its Statement of Stockholders' Equity(under "Accumulated Other Comprehensive Income") of $22,000 ($148,000 FMV − $170,000 Cost). Stone has already reported a $1,500 loss as of 12/31/X1; therefore, an unrealized loss of $20,500($22,000 − $1,500) should be reported in the Statement of Comprehensive Income (as part of other comprehensive income) for the year 20X2.1© 2009 DeVry/Becker Educational Development Corp. All rights reserved.Class Questions 2 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 3. CPA-00284 When a parent-subsidiary relationship exists, consolidated financial statements are prepared in recognition of the accounting concept of: a. Reliability. b. Materiality. c. Legal entity. d. Economic entity. CPA-00284 Explanation Choice "d" is correct. Reporting consolidated financial statements is consistent with the concept that the economic entity can be identified with a unit of accountability. Choice "a" is incorrect. The concept of reliability requires that information is verifiable, neutral, and representationally faithful, but does not address the parent-subsidiary relationship. Choice "b" is incorrect. Materiality relates to the presentation and accounting treatment of specific transactions, but does not address the parent-subsidiary relationship. Choice "c" is incorrect. Consolidated financial statements reflect the economic substance of the parent-subsidiary relationship, not legal form. 4. CPA-00283 Consolidated financial statements are typically prepared when one company has a controlling financial interest in another unless: a. The subsidiary is a finance company. b. The fiscal year-ends of the two companies are more than three months apart. c. The subsidiary is in bankruptcy. d. The two companies are in unrelated industries, such as manufacturing and real estate. CPA-00283 Explanation Choice "c" is correct. The exceptions to not consolidating a majority-owned subsidiary are when the subsidiary is in legal reorganization or bankruptcy and/or the subsidiary operates under severe foreign currency exchange restrictions, controls, or other governmentally imposed uncertainties so severe that they cast significant doubt on the parent's ability to control the subsidiary. Choice "a" is incorrect. Consolidation of finance companies is generally required. Choice "b" is incorrect. A difference in fiscal periods of a parent and a subsidiary does not of itself justify the exclusion of the subsidiary from consolidation. Choice "d" is incorrect. There is no exception for nonhomogeneous operations.Class Questions 3 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 5. CPA-00287 An investor uses the cost method to account for an investment in common stock. Dividends received this year exceeded the investor's share of investee's undistributed earnings since the date of investment. The amount of dividend revenue that should be reported in the investor's income statement for this year would be: a. The portion of the dividends received this year that were in excess of the investor's share of investee's undistributed earnings since the date of investment. b. The portion of the dividends received this year that were not in excess of the investor's share of investee's undistributed earnings since the date of investment. c. The total amount of dividends received this year. d. Zero. CPA-00287 Explanation Choice "b" is correct, the amount of dividend revenue that should be reported in the investor's income statement for this year would be the portion of the dividends received this year that were not in excess of the investor's share of investee's undistributed earnings since the date of investment. Rule: Dividend revenue - under the cost method should be recognized to the extent of cumulative earnings since acquisition, and return of capital beyond that point. Choice "a" is incorrect. As this will be characterized as a return of capital or liquidating dividend. Choices "c" and "d" are incorrect. As part of the dividends will be recognized as income and part will be a return of capital. 6. CPA-00285 Plack Co. purchased 10,000 shares (2% ownership) of Ty Corp. on February 14, 2001. Plack received a stock dividend of 2,000 shares on April 30, 2001, when the market value per share was $35. Ty paid a cash dividend of $2 per share on December 15, 2001. In its 2001 income statement, what amount should Plack report as dividend income? a. $20,000 b. $24,000 c. $90,000 d. $94,000 CPA-00285 Explanation Choice "b" is correct. Dividend income = Number of shares × dividend per share = 12,000 × $2 = $24,000 Receipt of a stock dividend is not revenue. It increases the number of shares held and decreases the cost basis per share.Class Questions7. CPA-00320On January 2, 1993, Well Co. purchased 10% of Rea, Inc.'s outstanding common shares for $400,000.Well is the largest single shareholder in Rea, and Well's officers are a majority on Rea's board ofdirectors. Rea reported net income of $500,000 for 1993, and paid dividends of $150,000. In itsDecember 31, 1993, balance sheet, what amount should Well report as investment in Rea?a. $450,000b. $435,000c. $400,000d. $385,000CPA-00320 ExplanationChoice "b" is correct. Even though Well has only a 10% ownership, one can presume that Well hassignificant influence on Rea since it is the largest single shareholder and has a majority on Rea's board ofdirectors. The equity method is the appropriate accounting method.B Beginning Investment $ 400,000A Add % Sub's Income(10% × $500,000) 50,000S Subtract % Sub's dividends/withdrawals(10% × $150,000) − 15,000E Ending Investment $435,000The investment account balance of $400,000 will be increased by the $50,000 equity in earnings (10% × $500,000 net income) and decrease by the $15,000 dividends received (10% × $150,000) for a year-end balance of $435,000.Choice "a" is incorrect. The investment account must also be decreased for Well's share of the dividendspaid by Rea.Choice "c" is incorrect. The equity method is the correct accounting method for this investment.Choice "d" is incorrect. The investment account must also be increased for equity in earnings of Rea.4© 2009 DeVry/Becker Educational Development Corp. All rights reserved.Class Questions8. CPA-00303Band Co. uses the equity method to account for its investment in Guard, Inc. common stock. How should Band record a 2% stock dividend received from Guard?a. As dividend revenue at Guard's carrying value of the stock.b. As dividend revenue at the market value of the stock.c. As a reduction in the total cost of Guard stock owned.d. As a memorandum entry reducing the unit cost of all Guard stock owned.CPA-00303 ExplanationChoice "d" is correct. Band should record the 2% stock dividend received from Guard with a memorandum entry that reduces the unit cost of all Guard stock owned. The total investment in Guard, Inc. will simply be spread over a larger amount of shares, thereby reducing the unit cost of all Guard stock owned.Choices "a" and "b" are incorrect as dividend revenue is not recorded when a stock dividend of the same shares in the same company are received.Choice "c" is incorrect. Band Co. uses the equity method to account for its investment in Guard, Inc. The initial investment (or cost) of the total Guard stock owned should not be changed simply because additional shares of stock are obtained. The total investment in Guard, Inc. will now be spread over a larger amount of shares.5© 2009 DeVry/Becker Educational Development Corp. All rights reserved.Class Questions 6 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 9. CPA-00289 Birk Co. purchased 30% of Sled Co.'s outstanding common stock on December 31, 2000, for $200,000. On that date, Sled's stockholders' equity was $500,000, and the fair value of its identifiable net assets was $600,000. On December 31, 2000, what amount of goodwill should Birk attribute to this acquisition? a. $0 b. $20,000 c. $30,000 d. $50,000 CPA-00289 Explanation Choice "b" is correct. The allocation of the investment purchase price is calculated as follows: Goodwill Excess = $200,000 FV × 30% = $180,000 NBV × 30% = $150,000 Purchase Price Investment $200,000 Less: NBV ($500,000 × 30%) (150,000) Total excess $ 50,000 Allocated to identifiable net assets FV $600,000 NBV (500,000) $100,000 × 30% = (30,000) Excess to goodwill $20,000Class Questions 7 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 10. CPA-00348 Park Co. uses the equity method to account for its January 1, 1990, purchase of Tun, Inc.'s common stock. On January 1,1990, the fair values of Tun's FIFO inventory and land exceeded their carrying amounts. How do these excesses of fair values over carrying amounts affect Park's reported equity in Tun's 1990 earnings? Inventory excess Land excess a. Decrease Decrease b. Decrease No effect c. Increase Increase d. Increase No effect CPA-00348 Explanation Choice "b" is correct. Park would record the additional COGS associated with the undervalued beginning inventory by debiting Investment Income and crediting the Investment in Tun account. Since the difference between book value and fair market value on land is not amortized, the difference in the land value would have no effect on equity in earnings. APB 18 para. 19 11. CPA-00288 Puff Co. acquired 40% of Straw, Inc.'s voting common stock on January 2, 2001 for $400,000. The carrying amount of Straw's net assets at the purchase date totaled $900,000. Fair values equaled carrying amounts for all items except equipment, for which fair values exceeded carrying amounts by $100,000. The equipment has a five-year life. During 2001, Straw reported net income of $150,000. What amount of income from this investment should Puff report in its 2001 income statement? a. $40,000 b. $52,000 c. $56,000 d. $60,000 CPA-00288 Explanation Choice "b" is correct. Undervalued Equipment $100,000 × 40% ownership = $40,000 / 5 years = $8,000 Puff's share of Straw's income: $150,000 × 40% = $60,000 Less: Excess fair value amortization (8,000) Equity method investment income $52,000Class Questions 8 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 12. CPA-00324 On January 1, 1992, Point, Inc. purchased 10% of Iona Co.'s common stock. Point purchased additional shares bringing its ownership up to 40% of Iona's common stock outstanding on August 1, 1992. During October 1992, Iona declared and paid a cash dividend on all of its outstanding common stock. How much income from the Iona investment should Point's 1992 income statement report? a. 10% of Iona's income for January 1 to July 31, 1992, plus 40% of Iona's income for August 1 to December 31, 1992. b. 40% of Iona's income for August 1 to December 31, 1992 only. c. 40% of Iona's 1992 income. d. Amount equal to dividends received from Iona. CPA-00324 Explanation Choice "a" is correct. Once a cost method investor becomes an equity method investor, the investment account must retroactively reflect the proportionate share of investee income recognized at each percentage level investment. Thus, 10% of Iona's income from January 1 through July 31 and 40% of Iona's income from August 31 through December 31 must be reported as earnings by Point. Choice "b" is incorrect. Since Point was an equity basis investor from August 1 through December 31, Point should recognize its share of Iona's income for the entire year at the different levels of investment during the year. Choice "c" is incorrect. Once a cost method investor becomes an equity method investor, the investment account must retroactively reflect the proportionate share of investee income recognized at each percentage level investment. Choice "d" is incorrect. Dividends received by a cost method investor would be recognized as income from the investment. Dividends received by an equity method investor would be a reduction of the investment account. The equity method applies to the entire year of the change so the dividends are not reported as income. 13. CPA-00430 Company J acquired all of the outstanding common stock of Company K in exchange for cash. The acquisition price exceeds the fair value of net assets acquired. How should Company J determine the amounts to be reported for the plant and equipment and long-term debt acquired from Company K? Plant and equipment Long-term debt a. K's carrying amount K's carrying amount b. K's carrying amount Fair value c. Fair value K's carrying amount d. Fair value Fair value CPA-00430 Explanation Choice "d" is correct. When the acquisition price exceeds the FMV of net assets acquired, assets and liabilities should be presented at fair value.Class Questions 9 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 14. CPA-00423 Penn Corp. paid $300,000 for the outstanding common stock of Star Co. At that time, Star had the following condensed balance sheet: Carrying amounts Current assets $ 40,000 Plant and equipment, net 380,000 Liabilities 200,000 Stockholders' equity 220,000 The fair value of the plant and equipment was $60,000 more than its recorded carrying amount. The fair values and carrying amounts were equal for all other assets and liabilities. What amount of goodwill, related to Star's acquisition, should Penn report in its consolidated balance sheet? a. $20,000 b. $40,000 c. $60,000 d. $80,000 CPA-00423 Explanation Choice "a" is correct. Goodwill is the excess of the purchase price over the fair market value of the net assets acquired. Sub's Total (100%) Fair Value = $300,00 Goodwill $20,000 - 0 - NCI Identifiable Intangible Asset FV - 0 - Balance Sheet FV Adjustment $60,000 $300,000 Investment In Subsidiary Book Value (CAR) $220,000 DR CRClass Questions 10 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 15. CPA-00389 A business combination is accounted for as an acquisition. Which of the following expenses related to the business combination should be included, in total, in the determination of net income of the combined corporation for the period in which the expenses are incurred? Fees of finders Registration fees for and consultants equity securities issued a. Yes Yes b. Yes No c. No Yes d. No No CPA-00389 Explanation Choice "d" is correct. Fees of finders and consultants increases the investment (asset) account. Registration fees for equity securities issued decreases additional paid in capital (stockholders equity). 16. CPA-00391 On September 29, 1995, Wall Co. paid $860,000 for all the issued and outstanding common stock of Hart Corp. On that date, the carrying amounts of Hart's recorded assets and liabilities were $800,000 and $180,000, respectively. Hart's recorded assets and liabilities had fair values of $840,000 and $140,000, respectively. In Wall's September 30, 1995, balance sheet, what amount should be reported as goodwill? a. $20,000 b. $160,000 c. $180,000 d. $240,000 CPA-00391 Explanation Choice "b" is correct. The allocation of the investment purchase price is calculated as follows: Sub's Total (100%) Fair Value = $860,000 Goodwill $160,000 - 0 - NCI Identifiable Intangible Asset FV - 0 - Balance Sheet FV Adjustment $80,000 $860,000Investment In Subsidiary Book Value (CAR) $620,000。
FINC6019_Financial Modelling_2010 Semester 1_FINC6019_Financial Modelling_UoSOutline
FINC6019Financial ModelingSemester 1, 2010 Unit of Study OutlineCoordinator: Mr. Hamish MallochPhone: 02 9036 6273,Email:hamish.malloch@.auOffice:Merewether, Room 458Consultation Times:Thursday 4-5 pm. Other times by appointment (e-mail preferred).Classes:Time:Wednesdays 6-9 pm Venue:Carslaw Room 2511.Unit of study information1.1.Faculty Handbook descriptionIt is important for practitioners of finance, at all levels, to be able to evaluate the applicability of a range of models for a given problem and to effectively implement and use the model that is selected. This unit will present methods for model design, implementation and evaluation in the context two fundamental financial models; the discounted cash flow valuation model and the portfolio selection model. Spreadsheet engineering methods for designing, building, and testing spreadsheet models and for performing model-based analysis will be presented. There will be a concise coverage of optimization, sensitivity analysis and simulation featuring a strong spreadsheet orientation and a modelling emphasis.1.2.Aims and contextThe aims of this unit are for students to develop a deeper understanding of financial models, specifically corporate valuation, portfolio and options pricing models. The students will also obtain an understanding of good model design, model implementation and spreadsheet engineering skills, issues with financial data and its impact on the modelling procedure, and the use of techniques such as simulation to test and validate models. Emphasis throughout the course will also be placed on the appropriateness of models used.2.Learning outcomes, learning and teaching activities & assessment2.1.Intended learning outcomesAt the end of this course the student will be able to:∙Apply the principles of model building and implementation to solve problems related to corporate valuation, portfolio construction and options pricing.∙Ascertain the appropriateness of a particular model for its application.∙Understand and be able to deal with issues pertaining to the use of financial data.∙Develop spreadsheet skills.∙Work effectively in a group environment.2.2. Learning and teaching activitiesClass sessions will typically involve a 2-hour lecture followed by a 1-hour workshop/tutorial session. The lectures will introduce and explain the material and highlight important concepts. You are expected to have made a serious attempt at all workshop questions prior to classes and participation in class discussions is encouraged. You may find some of the workshop questions quite challenging. Struggling with this challenge is a necessary part of gaining real understanding.Required text:“Financial Modeling” (3rd edition) by Simon Benninga. Published 2008 by MIT Press.It is important that the 3rd edition is used as older editions will not be up to date with features of excel and finance theory.Recommended texts (purchase not required):“Valuation: The Art and Science of Corporate Investment Decisions” by Sheridan Titman and John D. Martin. Published 2008 by Pearson-Addison Wesley.“Principles of Finance with Excel” by Simon Benninga. Published 2006 by MIT Press.“Excel Modeling and Estimation in Corporate Finance” (3rd Edition) by Craig W. Holden. Published 2009 by Pearson-Prentice-Hall.“Options, Futures and Other Derivatives” (4th Edition) by John Hull, Published 2000 by Prentice Hall.2.3. AssessmentWorkshop questions will be posted on Blackboard prior to class. Questions will be related to the previous weeks lecture. It is important to attempt questions before class – solutions and feedback will be provided in labs.2.4. Assessment detailsThere are three assessments in this subject:∙ A laboratory exam covering the modelling of free cash flows and portfolio construction from the first 6 weeks of the course. This will take place in the laboratory after the lecture in teaching week7. Students will be required to submit their spreadsheets for marking electronically.∙ A group assignment covering material from the second half of the course which is to be completed by the end of semester. Students are to form groups of 4-5. Material covered will include options valuation, portfolio construction and simulation.∙The final exam covers all material in the course. It will be based around theory and some numerical analysis learned throughout the course.2.5. Workload and minimum requirementsAcademic Board guidelines state that one credit point equates to approximately 1.5 to 2 hours of student effort per week for a typical 13 week semester. This means that if you are an average student seeking to get an average result for this unit then you should plan to spend at least 9 hours each week on learning. The minimum requirement for completion of the unit is to attempt all assessable activities and achieve a pass grade overall.Criteria for the overall assessment and your final total grade for the course:PASS – Demonstrate knowledge and understanding of facts and principles. Be able to apply concepts and principles in new situations.CREDIT – All criteria for a pass in course, plus: demonstrate analytical skills, that is be able to distinguish, classify and relate the assumptions, hypotheses, evidence, or structure of statements and questions within the framework of the subject matter.DISTINCTION – All criteria for a credit plus: demonstrate the ability to originate, integrate and combine ideas into work that constructs a unique view of the subject matter.HIGH DISTINCTION – All criteria for a distinction, plus: students show the ability to appraise, assess or critique ideas and evidence in the subject area using reasoned judgement against articulated standards.2.6. FeedbackStudents will receive feedback on all assessments before the final exam. Suggested answers to the laboratory presentation and group assignment will be placed on Blackboard. General feedback regardingcourse content and other student queries will be provided in lectures. Students are strongly encouraged to use the discussion forum on Blackboard to correspond with the lecturer and each other. This will be checked regularly. Consultation with the lecturer is also available at the allotted time or by appointment.2.7. Academic honesty, plagiarism, legitimate cooperation and group workCommencing students should complete the academic honesty module available via Blackboard before their first assessment submission. Students should refer to Faculty and University policies on academic dishonesty and plagiarism(.au/business/currentstudents/student_information/student_administration_manual), copyright .au/senate/policies/Intellectual_Property_Rule.pdf and the …All your own wo rk website‟ (.au/secretariat/students/plagiarism_index.shtml) for information about legitimate cooperation, group work, how to reference correctly and how to avoid plagiarism.Academic honesty is important to protect students' right to receive due credit for work submitted for assessment. It is clearly unfair for students to submit work for assessment that dishonestly represents the work of others as their own and gain marks and degrees, which are not based on their own efforts and abilities. Deliberate breaches of academic honesty constitute academic misconduct. These breaches include: plagiarism, fabrication of data, recycling previously submitted material, engaging someone else to complete an assessment on one‟s behalf and misconduct during supervised assessments.The penalties for academic misconduct may include: a mark of zero on the assessment; a fail grade in the unit of study, additional assessment (including an unseen exam), and reference of the matter to the University Registrar.All assessments will be checked for plagiarism. Where plagiarism is suspected, the assessment will be fully checked and monitored using manual process, google checks and also electronic plagiarism detectors. In order to do this, the Faculty may reproduce the assessment, provide a copy to another member of faculty, and/or communicate a copy of this assignment to a plagiarism checking service (which may then retain a copy of the assignment on its database for the purpose of future plagiarism checking).Academic dishonesty involves more than just copying material. Cooperation and helping other students may at times trigger academic dishonesty proceedings if it appears you have worked too closely with another studentIndividual assignments must be written and prepared alone. You may consult with other students about ideas and possible research sources but the analysis and writing of the assignment must be done alone. Group assignments should be prepared within the group. Students should contribute fully to the group and take part in all group activities, contributing ideas, analysis and writing to the final product. While students within the group should assist each other freely, students should not carry this level of cooperation out side the group. One group may cooperation and help another group about ideas and possible research sources but the analysis and writing of the assignment must be done by the group alone.3.Student feedback and evaluation3.1 Feedback received from previous studentsStudent feedback from previous semesters included more emphasis on electronic learning and more practical problems to be attempted in workshops. Students also requested less overlapping material with other finance subjects – and more focus on the role of financial analysts. Students also requested earlier posting of lecture notes and additional reading material on blackboard.3.2 Improvements madeLecture notes will now be posted at least one day prior to the lecture. There will be less focus on theory already covered in other finance subjects and more on applied techniques.3.3 Collection of feedback from current studentsFeedback will be collected via a Unit of Study Evaluation form at the end of the semester. Students may contact the lecturer with any concerns or suggestions for improvement throughout the semester (e-mail preferred).4.University policies and servicesAll students must comply with and follow all Faculty and University policies and procedures.Faculty policies are contained in the Administration Manual for Students at.au/business/currentstudents/student_information/student_administration_manual. It is crucial that you take the time to consult this manual early in your studies in order to familiariseyourself with policies and procedures relating to critical issues such as the Faculty‟s policy on sp ecial consideration (including requirements and timelines. e.g. lodging applications five working days after a missed assessment), appeals (lodge within 15 working days of the decision) and other policies such as enrolment, credit etc. Assistance is availa ble from the Faculty‟s Student Information Office at.au/business/student_information_officeUniversity policies at .au/policy Assistance is available from the University‟s Student Centre .au/current_students/student_administration/or the Student Affairs Unit.The code of conduct is an important policy which outlines the University‟s expectations about treating all staff employees and students with respect, dignity, impartiality, courtesy and sensitivity and refrain from acts of discrimination, harassment or bullying..au/ab/policies/Student_code_conduct.pdfLinks to other student services and resources are included on Blackboard and on the Faculty‟s Learning and Teaching website .au/business/learning.5.Topic and assessment scheduleFM: Benninga, Simon (2008) Financial Modeling, 3rd Edition, MIT Press, Cambridge, M.A.。
FINC6000_Quantitative Finance_2009 Semester 2_UOS_Outline_FINC6000_S2_20091
FINC6000Quantitative FinanceSemester 2, 2009 Unit of Study OutlineCoordinator: Mr. Quan GanPhone: 02 9114 0831, Email: q.gan@.auOffice: Room 470, H04Consultation time: Tue 2-4pmLecturer:Dr. Andrew LeponePhone: 02 9351 6453, Email: a.lepone@.auOffice: Room 408, H69Consultation time: Wed 5-6pmClasses:Stream 1Time: Tue 09:00-12:00 Venue: Merewether Lecture Room 5 (Rm 277)Lecturer: Quan GanStream 2Time: Tue 18:00-21:00 Venue: Peter Nicol Russell Drawing Office 1Lecturer: Quan GanStream 3Time: Wed 18:00-21:00 Venue: New Law Seminar Room 105Lecturer: Andrew Lepone1.Unit of study information1.1. Faculty Handbook descriptionThe principle objective of this unit is to provide students with mathematical treatment of theoretical and analytical concepts in quantitative finance. Students are exposed to key areas in the investment, portfolio optimization, pricing of derivative contracts and instruments. The course assumes that students have taken an introductory course in finance and an introductory course in probability and statistics.1.2. Aims and contextThe key focus or purpose of thisunitThe course focuses on the valuation and risk of derivatives.How this unit of study relates to previously studied units Reinforce and extend in a mathematical context the key financial concepts introduced in Capital Markets and Corporate Finance (FINC5001).How this unit of study prepares students for subsequent units This unit will prepare the student for Derivative Securities (FINC6010) and Advanced Asset Pricing course (FINC6005).How this unit of study relates to the degree program/s This unit is a compulsory unit for the Quantitative Finance major in the Master of Commerce.2.Learning outcomes, learning and teaching activities & assessment2.1 Intended learning outcomesThe skills developed, knowledge constructed and qualities acquired through the successful completion of this unit will contribute to a number ofFINC6000, Quantitative Finance2.2.Learning and teaching activitiesPrescribed textbooks:The following textbooks are required in the course –David G. Luenberger, Investment Science, Oxford University Press, 1998John C. Hull, Options, Futures and Other Derivatives 7th Edition, Pearson Prentice Hall.Solutions manuals are highly recommended –David G. Luenberger, Solutions Manual for Investment Science, Oxford University Press, 1998John C. Hull, Student Solutions Manual for Options, Futures, and Other Derivatives, 7eBlackboard:Lecture notes for each week will be made available on the blackboard web-site (.au).2.4. Assessment detailsAssignment:Assignments must be completed in groups of 3-5 students. Assignments questions are 2.29, 3.23, 3.24, 3.25 and 3.26 in Hull’s book. Assignments must be submitted electronically via Blackboard and in hard copy in the assignment collection boxes in the Economics and Business Building. Submission is not valid unless both copies are identical and both received by the due date. If submission problems occur, students should contact the unit co-ordinator as soon as possible. Further details are available at the end of this unit of study outline.Mid-term exam:Lectures in week 1-7 will be covered in the mid-term. The mid-term exam will be a multiple choice exam.Final exam – 2 hours:The final will cover the assignment and lectures in week 9 -13.2.5. Workload and minimum requirementsThe Academic Board student workload for six credit point units equates to an average of 9-12 hours of student effort per week per 13-week semester. If you are an average student seeking to get an average result for this unit then you should spend at least 9 hours each week in reading textbook, solving questions, discussing your work with friends and when necessary attending staff consultations. This unit has high requirement in calculation. Students with inadequate quantitative background are strongly recommended to take ECMT5001 Principles of Econometrics prior to attending this unit.2.6. FeedbackWeekly tutorial questions and discussions provide timely and regular feedback for students.Students must do their weekly tutorial questions independently before attending the class.Students should use solutions manual frequently as a way to self-evaluate and check their solutions.In week 13, students will have feedback on their group assignment and mid-term exam.2.7. Academic honesty and plagiarismCommencing students should complete the academic honesty module available via Blackboard before their first assessment submission. Students should refer to the University’s policies on a cademic honesty and plagiarism (.au/policy), the Faculty’s procedures for dealing with allegations(.au/sio) and use the assessment cover sheet.Academic honesty is important to protect students' right to receive due credit for work submitted for assessment. It is clearly unfair for students to submit work for assessment that dishonestly represents the work of others as their own and gain marks and degrees, which are not based on their own efforts and abilities. Deliberate breaches of academic honesty constitute academic misconduct. These breaches include: plagiarism, fabrication of data, recycling previously submitted material, engaging someone else to complete an assessment on one’s behalf and misconduct during supervised assessments.The penalties for academic misconduct may include: a mark of zero on the assessment; a fail grade in the unit of study, additional assessment (including an unseen exam), and reference of the matter to the University Registrar.3.Student feedback and evaluation3.1 Feedback received from previous studentsAs a teaching team we review all the ratings and comments at the end of the last semester to plan changes for this semester. The same feedback approach will be incorporated this semester.3.2 Improvements madeStudents’ feedback was generally positive about the administration and teaching. The negative comments focused on the alignment of textbook, lecture notes, tutorial questions and assignment. As a result of the feedback, in this semester we will use only one textbook. Lecture notes, tutorial questions and assignment are all based on and from this textbook.3.3 Collection of feedback from current studentsStudent feedback is very important for this unit. Anonymously evaluation is typically undertaken through the Unit of Study Evaluation (USE) instrument at the end of each semester. Feedback will be used to make further changes to improve the unit of study.4.University policies and servicesAll students must comply with and follow all Faculty and University policies and procedures.Faculty policies are contained in the Administration Manual for Students at.au/StudentManual. It is crucial that you take the time to consult this manual early in your studies in order to familiarise yourself with policies and procedures relating to critical issues such as the Faculty’s policy on specia l consideration (applications due within 5 working days of an assessment), appeals (15 working days from decision) etc. Assistance is available from the Faculty’s Student Information Office at .au/sioUniversity policies at .au/policy include: academic honesty.au/ab/policies/Academic_Honesty_Cwk.pdf, plagiarism.au/senate/policies/Plagiarism.pdf. Assistance is available from the University’s Student Centre .au/studentcentreThe code of conduct is an important policy which outlines the University’s expectations about treating all staff employees and students with respect, dignity, impartiality, courtesy and sensitivity and refrain from acts of discrimination, harassment or bullying. .au/ab/policies/Student_code_conduct.pdf Links to other student services and resources are included on Blackboard and on the Faculty’s Learning and Teaching website .au/students/learningsupport (e.g. counselling services).。
FINC6009_Portfolio Theory and Its Applications_2009 Semester 2_FINC6009_Sem2_ 2009_CourseOutline
FINC 6009 Portfolio Theory and Its ApplicationsSemester 2, 2009 Unit of Study OutlineLecturer in ChargeDr. Hui Zheng,Phone:02 9351 6448, Email: h.zheng@.auOffice: Economics and Business Building (H69), Level 4, Room 443Consultation Times: Monday 5pm – 6pmPreferred method of contact: EmailClasse:Week 1, 2, 7-13:Stream 1: Mon 13:00-16:00, New Law School Seminar 105.Stream 2: Mon 18:00-21:00, Peter Nicol Russell Drawing Office 1.Week 3-6:Stream 1: Mon 13:00-16:00, Economics and Business Laboratory 1.Stream 2: Mon 18:00-21:00, Economics and Business Laboratory 1.1.Unit of study information1.1.Faculty Handbook descriptionThis course is an introduction to modern portfolio theory and its applications. It provides coverage to a fairly wide array of topics in portfolio management and related investment activities, and detailed techniques about portfolio selections when market equilibrium may not be a general assumption in reality. Topics covered include mathematical optimization techniques in the presence of uncertainty, utility-independent approaches to the modelling of risk and return, equilibrium capital asset pricing models, and modern investment management in fixed-income securities. A high-light of this course has been added to the introduction of behavioural finance and hedge funds. An emphasis of this course is given to the students’ actual implementation of these portfolio selection techniques and the related performance evaluation methods using real financial market data.1.2.Aims and contextThe aim of this unit is to provide opportunities for students to advance their knowledge in investment and portfolio management. The key focus is to facilitate a comprehensive analytical approach to a diversity of topics in modern portfolio and investment research and applications. To effectively achieve this target, students are required to not only have a sound understanding of fundamental knowledge but also develop a practical ability to apply these techniques and provide solutions to real problems. In addition to the pre-requisite course of Capital Market and Corporate Finance, this course assumes students are comfortable with basic statistics, mathematics and econometrics that are commonly taught in a Bachelor degree in Science or Economics.This course provides skills in investment and portfolio management which equip students for majors in finance, banking, and financial economics.2.Learning outcomes, teaching and learning activities & assessment 2.1.Intended learning outcomesLearning outcomes Graduate Attributes Teaching & learning activities Assessments1. Understand economic, financial, and mathematical issues in portfolio theories and be able to apply these ideas to solve problems encountered in real market environments.2 Think critically about underlying theories, concepts, assumptions and arguments in portfolio theory and investments. Research and Inquiry Assigned materialslecturesHome work questionsPortfolio Management Exercise (PME)AssignmentComplete PMEassignment and providecritiques to peer group’sassignmentProblem solving in mid-semester and finalexaminations3 Formulate and present persuasive arguments confidently, coherently and concisely communicate orally and in writing, to a professional standard.4. Demonstrate an appreciation of the importance of being able to collaborate with and learn from others. Communication Participation in classPME assignmentPME PresentationWritten answers in finalexaminationComplete and presentPME assignment5. Acquire and apply real data to problems in portfolio management and investments. Information literacy Tutorial problems requiring acquisition ofdataPME assignmentMid-semester and finalexaminationsPME Assignment2.2.Learning and teaching activitiesClassesClass sessions will typically involve a 3-hour lecture. The lectures introduce and explain the material and highlight important ideas.From Week 3 – Week 6, lectures will be conducted in Computer Lab 1 in the Economics and Business Building for 90 minutes, and computer workshops will then be run for the rest 90 minutes. Computer workshop materials will be distributed in class and can be downloaded from Blackboard during these weeks.Homework questions will be set for each week from the textbook, and solutions will be posted on Blackboard. Students are expected to resolve these questions by themselves with the help of answers and lecture notes. Questions can be raised during class or consultation hours.Students should check Blackboard on a regular basis (twice per week is recommended) for updates and announcements. Lecture and workshop attendance is optional. However, failure to attend means a student forfeits the right to consultation hours (illness and misadventure excepted but valid evidence must be presented in these circumstances).Behavioural guidelines: at all times students are expected to show courtesy and consideration to others. Students may be asked to leave if their behaviour is disrupting other students.On-lineBlackboard is used for announcements. It also provides course overheads before the lecture, solutions to tutorial questions, and other useful materials. Results of tests will be posted in the Blackboard GradeCentre.TextbookThe textbook for the course is:Elton, Edwin, Martin Gruber, Stephen J. Brown, William N. Goetzmann, Modern Portfolio Theory and Investment Analysis. John Wiley, 7th edition 2006.2.3.AssessmentType Weighting Submission DateMid-semester Test 25% 7th September 2009PME Report 10% 6th October 2009 4pmGroup Presentation and Critique 10% 12th October 2009Final Examination 55% TBADetails of late penalties for these assessments are listed in Section 2.4 below.2.4.Assessment detailsPortfolio Management Exercise (PME) ReportFurther details on the PME will be provided in Week 6. This project is designed to develop your ability to apply portfolio construction skills using real world data. It provides an opportunity for you to contribute to the work of a group, and to improve your ability to exercise critical judgment and account for your decisions. Further details will be provided during the semester. All group members will share the same mark, and grades will be based on the quality of the report and not portfolio returns.Both an electronic copy and a hard copy of the final report need be submitted. Electronic copy should be submitted via Blackboard with the Group Assessment Cover Sheet for Electronic Submission signed by all group members. The cover sheet can be downloaded from the Faculty website:.au/__data/assets/word_doc/0011/2621/081106_GroupCoverSheet.doc.A duplicate hard copy must also be submitted to the “FINC 6009 Assignment Box” located on Level 1 Economics and Business Building with the Group Assessment Cover Sheet for Paper Submission signed by all group members. The cover sheet can be downloaded from the Faculty website:.au/__data/assets/word_doc/0011/2621/081106_GroupCoverSheet.doc. Should submission problems occur, students should contact the Faculty IT Help Desk (located at Level 1 Economics and Business Building; Tel: 93515409 or Email: helpdesk@.au) as soon as possible. If problem does not resolve, students should contact the course coordinator. Submission is not valid unless both copies are identical and both received by the due date. A group failing to do so may receive a zero mark for its PME report. More details about the penalties will be provided together with the PME requirements during the semester.In-class group presentation and critiqueEach group is expected to deliver an 8-minute presentation about their own PME report during the class on 12 October 2009. Presentation will be evaluated based on the content, presentation skills and effectiveness to the audience that are demonstrated during the presentation.Following the presentation, each group will be required to criticize a PME report from another group. The PME report that a group will criticize will be randomly assigned prior to the presentation date, and a paper report of the critique must be handed in on the day of presentation and the electronic version of the critique report should be submitted on the following day. Each group will also have the chance to defend their work against others’ critiques. These exercises are designed to enhance the students’ ability to develop independent and critical thinking and present their ideas in a professional manner.A group failing to show up and present may receive a zero mark.Mid-semester testThe objective of the mid-term test is to motivate you to keep up to date, to regularly revise your work, and to complete homework questions. The test also provides you with feedbacks on your performance and provides a useful (but not perfect) guide to your likely performance in the final exam. The mid-term test will be in multiple-choice format, and will be held in Week 7 (7 September) in class covering all material pertaining to Week 1 – 6. More information regarding to the midterm exam will be announced in class prior to the exam.Final examinationThe objective of the final exam is to test your understanding of the material studied during the whole semester. Questions in the final exam will typically involve but are not limited to multiple choice questions, short essay or discussion questions, and problem solving questions, based on topics and material studied in the course. A significant part of the exam will be modelled on homework questions and examples explained in class, and therefore you would be well advised to put significant effort into attending the lectures and doing the assigned work. The final examination will cover the entire course material.Consequence of Missing the ExamsIn general you will receive a zero mark for the test if you miss the mid-semester exam or the final exam. However, if you submit an application for special consideration with a valid reason and your application is approved by the Faculty Special Consideration Approval Committee for missing the test, then:i)if it is the mid-term exam that you miss, then the test marks will be allocated to the finalexam; For example if you missed the mid-term test due to a serious illness and your special consideration application is approved, then your final exam would be marked out of 80% instead of 55%; andii)if it is the final exam that you miss, then there will be a supplementary exam for you to attend. Details of the supplementary exam will be provided to you within 2-3 weeks after the final exam.Minimum Requirements for the Successful Completion of the CourseIn order to complete this course, i.e. pass, students will have to meet the minimum criteria of passing the combined assignment, mid-term exam and final exams.2.5.Workload and minimum requirementsIf you are an average student seeking to get an average result for Portfolio Theory and Its Applications, then you should plan to spend at least 9 hours each week on learning. This involves attending classes, pre-reading and re-reading, doing assigned questions and problems, forming groups and working on assignment, and other activities such as making additionalnotes or discussion of course topics with other students. Additional effort may be needed during weeks when assignment or exams are due soon.This unit is a demanding one, and students should realize that they need to fully utilize the allocated time outside of classes for preparation and revision.2.6.FeedbackYou will be provided with marks from your mid-term exam, assignment and presentation when the results are processed. This is typically within two to three weeks after the exam is conducted or the assignment is handed-in. Questions for which most students had problems will be covered in lectures and students with the lowest marks in their stream will be advised to see the lecturer in charge to discuss if they have particular issues in learning. In addition, you will also be able to hear feedbacks from your peer students on your PME report. You may consult the lecturers during their consultation hours.2.7.Academic honesty and plagiarismCommencing students should complete the academic honesty module available via Blackboard before their first assessment submission. Students should refer to the University’s policies on academic honesty and plagiarism (.au/policy), the Faculty’s procedures for dealing with allegations (.au/sio) and use the assessment cover sheet.Academic honesty is important to protect students' right to receive due credit for work submitted for assessment. It is clearly unfair for students to submit work for assessment that dishonestly represents the work of others as their own and gain marks and degrees, which are not based on their own efforts and abilities. Deliberate breaches of academic honesty constitute academic misconduct. These breaches include: plagiarism, fabrication of data, recycling previously submitted material, engaging someone else to complete an assessment on one’s behalf and misconduct during supervised assessments.The penalties for academic misconduct may include: a mark of zero on the assessment; a fail grade in the unit of study, additional assessment (including an unseen exam), and reference of the matter to the University Registrar.3.Student evaluation and feedbackOn the basis of student feedback I endeavour to make lecture overheads available ahead of the lecture. Student evaluations are conducted each semester and are used to improve the course.4.University policies and servicesAll students must comply with and follow all Faculty and University policies and procedures. Faculty policies are contained in the Administration Manual for Students at .au/StudentManual. It is crucial that you take the time to consult this manual early in your studies in order to familiarise yourself with policies and procedures relating to critical issues such as the Faculty’s policy on special consideration (applications due within 5 working days of an assessment), appeals (15 working days from decision) etc. Assistance is available from the Faculty’s Student Information Office at .au/sioUniversity policies at .au/policy include: academic honesty .au/ab/policies/Academic_Honesty_Cwk.pdf, plagiarism .au/senate/policies/Plagiarism.pdf. Assistance is available from the University’s Student Centre .au/studentcentreThe code of conduct is an important policy which outlines the University’s expectations about treating all staff employees and students with respect, dignity, impartiality, courtesy and sensitivity and refrain from acts of discrimination, harassment or bullying. .au/ab/policies/Student_code_conduct.pdfLinks to other student services and resources are included on Blackboard and on the Faculty’s Learning and Teaching website .au/students/learningsupport (e.g. counselling services)。
FINC5001 Lecture 2 (PS)
Time
17:00 – 17:30 17:00 – 17:30
Objective of consultations
› To provide individual learning and feedback opportunities in preparation for the mid-term test, the assignment and the final exam.
Distinguish between commercial banks and other financial institutions in the financial marketplace.
The financial marketplace: Securities markets
Describe the different securities markets for bonds and shares.
Time value of money – the basics (Wk 3) Time value of money – annuities & other topics (Wk 3)
11
Lecture
Lecture overview
Lecture contents Learning objectives
Capital Markets and Corporate Finance: FINC5001
Lecture 2: Firms and Financial Markets / Financial Statement Analysis
Your lecturer
Peter Skalkos
Peter.Skalkos@.au
Fisqal Localization for Luxembourg User Guide
User Guide for Fisqal™Localization for Luxembourg Fisqal™ is a localization solution for Microsoft Dynamics 365 Business Central in Luxembourg enabling organizations to manageeCDF and FAIA reporting.General Information (2)Introduction (2)Icons (3)Installation (3)a)Import Configuration (4)b)Manual Setup (5)Finalize the wizard (6)Functional documentation (7)Electronic platform to collect financial data (eCDF) (7)Annual Accounts (7)Value Added Tax (VAT) (7)Declaration Appendices (7)How to extract an eCDF declaration (8)Manual Setup (10)Audit File FAIA (11)Setup (11)Exporting FAIA Files (12)To create an export of FAIA files (12)FAIA files and Data Quality (12)Performance optimizations (13)Intrastat Reporting (14)Introduction (14)Setup (14)Generate Intrastat reports (14)Account Schedules (17)Generating account schedules (17)Future release (18)More Information (19)Legal (19)IntroductionFisqal® is a localization solution for Microsoft Dynamics 365 Business Central enabling organizations to manage eCDF and FAIA reporting for Luxembourg. By default. Fisqal®:•Is shipped with pre-defined eCDF model types for Luxembourg. Currently, most model types commonly used in commercial companies are available.•allows you to create your own model types, whether it be for VAT or others. The framework is modular and relies on setups.•enables to generate the audit file “FAIA” which is mandatory for many organizations in Luxembourg.The file is based on the international SAF-T file but contains specific adjustments for Luxembourg.Fisqal® only ships with the complete version of FAIA files.•Is shipped with standard setup packages for Luxembourg for new deployments (paying option). We can also help you customize your existing VAT setup to match other reporting requirements (paying option).•Includes Intrastat report layouts.This document describes the modules and features of Fisqal® and how to use them in your organization / deployment. If you require assistance, please contact our customer service team for personalized guidance.•Tools to setup & export FAIA•Tools to setup & export eCDF declarations•Standardized setup for FAIA1•Standardized setup for eCDF2Each related to the Fisqal® product line.For further information on the application, please refer to the landing page or contact us.1 Subject to compatibility with the Business Central deployment on which it is installed2 Subject to compatibility with the Business Central deployment on which it is installedIconsℹInformation – Indicates sections which include important information to be considered by the user.Reminder – Reminds the user of already mentioned information or processes which enable the user to achieve optimized results.Tip - Indicates sections which support the user to use the functionality correctly.⚠Warning - Signifies information of high importance to be considered to avoid errors.InstallationThese instructions describe how to onboard and setup Fisqal® and register it for a 30-day trial.1.In Business Central, choose the icon, enter Assisted Setup, and then choose Assisted Setup.2.Choose Setup eCDF3.The first page in the setup guide explains what you are about to set up. Choose Next.1.Select one of the “Actions” from the following options.a)Import ConfigurationIn most cases, you can install Fisqal® by using the wizard to import and/or:1)the standardized eCDF package which contains the typical model types including theirdefinition and generic eCDF VAT Product Posting Groups that you can map to your existing VAT Product Posting Groups.2)the Rapid Start Package for Luxembourg. This package contains basic setup data forBusiness Central that is generally useful for a Luxembourgish company. Use this package for a new company only, ideally before you import master data or make other configurations.b)Manual SetupBy selecting this option, you are free to create your own configuration and use Fisqal® in non-standard or existing deployments. You should/must use this option if:1)You don’t want to use the eCDF VAT Prod. Posting Groups provided by Fisqal®2)You are not able to map your VAT Prod. Posting Groups with the eCDF VAT Prod. Posting Groupsprovided by Fisqal®3)You don’t use the PCN2020 as chart of accountsFinalize the wizardAfter you have selected the preferred option and/or uploaded the Files, click Next to automatically upload the Data to your System. After The Import is finished the following Step should be shown where you can fill the mandatory fields with your Company Information.⚠This step could take a few minutes, please do not cancel.Electronic platform to collect financial data (eCDF)In Luxembourg, many organizations must present and file accounts under a specific format referred to as electronic Centrale des Données Financières also known as "eCDF". Fisqal® allows you to export this kind of statements from Microsoft Dynamics 365 Business Central.eCDF is composed of three types of statements:1)Annual Accounts2)Value Added Tax3)AppendicesThe following heading lists currently available statements of the application.Annual Accounts•Annual accounts – Balance Sheet•Annual accounts – Abridged Balance Sheet•Annual accounts - Balance Sheet (S.P.F. - art. 31 L. 19/12/2002)•Annual accounts – Profit and Loss Account•Annual accounts – Abridged Profit and Loss Account•Annual accounts – Profit and Loss Account (S.P.F. - art. 31 L. 19/12/2002)•Annual accounts – Chart of AccountsValue Added Tax (VAT)•Value Added Tax (VAT) – Annual Declaration•Value Added Tax (VAT) – Simplified Annual Declaration•Value Added Tax (VAT) – Monthly Declaration•Value Added Tax (VAT) – Quarterly Declaration•Value Added Tax (VAT) – Monthly recapitulative statement of intracommunity of goods•Value Added Tax (VAT) - Quarterly recapitulative statement of intracommunity of goods•Value Added Tax (VAT) - Monthly recapitulative statement of intracommunity of services•Value Added Tax (VAT) - Quarterly recapitulative statement of intracommunity of services Declaration Appendices•Declaration Appendices – Tables of acquisitions / amortizable expendituresHow to extract an eCDF declarationOpen the eCDF declarations and select the preview button for the Model you want to extract.The following page will open where you must fill up the “Starting Date” and the “Ending Date”.Select the function “Export PDF” to fill up the “eCDF” form.Manual SetupFor the above-described functionality to work, you must map your custom VAT Prod. Posting Groups with standardized, generic eCDF VAT Prod. Posting Groups or create your own codes.Moreover, the eCDF declarations must be correctly defined. By default, Fisqal® ships the below listed model types. If you require help to create custom layouts, please contact us. Each eCDF declaration must be assigned to the correct PDF template.Audit File FAIAIn principle, any company subject to VAT in Luxembourg must be able to report financial data and provide a set of standard tax audit files called “FAIA” to the Luxembourgish authorities upon request. Fisqal® enables you to setup, generate, and export FAIA from within Business Central. The exported FAIA files will automatically be compressed as a .zip archive ready to be uploaded by the user on the website of the Luxembourgish tax authorities.Therefore, Fisqal® provides the following capabilities:•Setup and mapping of chart of accounts to FAIA standard accounts•Mapping VAT setup to FAIA VAT codes•Control to which extent dimensions are exported in FAIA files•Export FAIA files, either directly or by using the Job Queue. Using Job Queue lets you schedule the export to occur during quiet hours, which is useful for potentially large datasets.SetupSet up FAIA through the Assisted Setup. If needed, you can run this wizard several times until you finish the setup.4.In Business Central, choose the icon, enter Assisted Setup, and then choose Assisted Setup.5.Choose Set up FAIA6.The first page in the setup guide explains what you are about to set up. Choose Next.7.In the Mapping Type field, choose the type of Chart of Accounts you want to have based on theLuxembourgish accounts, and then choose Next.To define the period for the first FAIA reporting, choose Accounting Period, confirm the data range, and then choose Next. Typically, this is done for a specific accounting period, but you can also definea date range without specifying an accounting period.1.To map your chart of accounts to the Luxembourgish accounts, choose Open setup to define G/Laccount mappings. Lines where the G/L Account No. is marked with green indicates that here are transactions on the account within the date range specified in the previous step, in which case itmust be mapped. Other G/L accounts can be skipped. When finished, close the FAIA MappingSetup Card, and then choose Next in the setup guide.2.To map the VAT Posting Setup to standard sales and purchase FAIA tax codes, choose Opensetup to define VAT Posting Setup Mapping. When finished close the FAIA VAT Posting Setupcard, and then choose Next in the setup guide.3.Some authorities recommend that you export dimensions for financial transactions. However, insome situations you may not want to export dimensions. This step lets you open the Dimensions list and choose which dimensions to export. Please note that dimension codes cannot exceed 9characters in FAIA. Choose the value in the Export to FAIA field, and then choose Close.4.To specify the employee who is the FAIA contact in your company, choose the employee inthe Employee No. field. This is useful when Luxembourgish authorities have questions about theFAIA files. When finished, choose Next.5.To specify currencies, please make sure you follow ISO 3166-1 alpha 2 naming conventions.6.The setup of FAIA is now finished. Choose Finish.Exporting FAIA FilesTo export FAIA files from Business Central, you must first create and set up a FAIA Export to define the mapping range. For example, you can define a mapping and export the entire year of 2021, and another mapping for just the month of April 2021 if the authorities ask you to provide this data specifically.To create an export of FAIA files1.In Business Central, choose the "Tell me what you want to do") icon, enter FAIA Exports, andthen choose FAIA Exports.2.On the FAIA Exports page, choose Create.3.On the FAIA Export page, in the Mapping Range Code field, choose the mapping range for whichto define an export.4.To start the FAIA export, do one of the following:5.To export immediately, choose Start.6.To schedule the export to be handled by the jobs in the Job Queue, choose Parallel Processing.Exporting G/L entries can take time. To speed up the process, consider specifying how many jobs to run in parallel.7.To check the status of the FAIA file generation, look at the Lines section in the lower part of thispage.8.When all files are generated, choose Download file to download a .zip file that contains the FAIAfiles. This file is ready to be provided to the Luxembourgish tax authorities.FAIA files and Data QualityFAIA files can only be validated when certain information exists on relevant records in Business Central. To help ensure data quality for FAIA you can enable more proactive controls on the Data Quality FastTab on the FAIA Setup page. Additionally, on the FAIA Export card page, use the Data check action to check the data quality before you export the file.Performance optimizationsThere are a couple of things you can do to improve performance:•Split by Date option.•Create Multiple Zip Files optionFor very large exports with many transactions, you can also use the option to create multiple .ZIP files. This is useful if individual files per month are very large, or the count of files per date is too big. Use this option when the single large ZIP file will not validate on the authorities' web site due to its size, for example. Using this feature will split up the export into multiple ZIP files, up to 10 in alignment with the requirements that are stated in the general FAIA documentation. The FAIA Export File page is always opened when using the Download File action. Here you can see how many files where generated and download them one byone.Intrastat ReportingIntroductionThe principle of the free circulation of Union goods among the Member States of the European Union led to the disappearance of all customs barriers and eliminated the need to make customs declarations. Companies must however declare their intra-Community movements of goods in a monthly Intrastat declaration. The Intrastat declaration is used to collect statistical data on international commerce.In Luxembourg, Intrastat declarations are filed with the National Institute of Statistics and Economic Studies of the Luxembourg (STATEC), that next sends the monthly statistics to the Statistical Office of the European Union (Eurostat).Source: https://logistics.public.lu/en/formalities-procedures/general-formalities/intrastat.htmlSetupIn order to setup Intrastat for Fisqal® please refer to the Business Central documentation for Intrastat available here: Set Up and Report Intrastat - Business Central | Microsoft Docs.Generate Intrastat reportsThe following reports are made available by Fisqal®:1)Arrivalsa.Simplified Declarationb.Detailed Declarationc.Extended Declaration2)Dispatchesa.Simplified Declarationb.Detailed Declarationc.Extended DeclarationArrivalsSimplified DeclarationMicrosoft Word - Intrastatform Arrival simplified.docx (public.lu)Detailed DeclarationMicrosoft Word - Intrastatform Arrival detailed.docx (public.lu)Extended DeclarationMicrosoft Word - Intrastatform Arrival extended.docx (public.lu)DispatchesSimplified DeclarationMicrosoft Word - Intrastatform Dispatch simplified.docx (public.lu)Detailed DeclarationMicrosoft Word - Intrastatform Dispatch detailed.docx (public.lu)Extended DeclarationMicrosoft Word - Intrastatform Dispatch extended.docx (public.lu)Account SchedulesGenerating account schedulesBy default, Fisqal™ is shipped with the possibility to generate account schedules (financial statements) based on any eCDF declaration card. To generate an account schedule, make sure the eCDF declaration card is filled:Then, navigate to the Account Schedule Names page in Business Central and use the action “Generate account schedules based on eCDF”:Future releaseFeatures not mentioned in this document are not available in this version of Fisqal®such as the following:-Setup Improvementso Updated PCN 2020 with account categories and subcategories-Intrastat Improvementso Intrastat Controlso Export the electronic format of the Intrastat declaration-VAT Improvementso Export eCDF as an .xml file ready for import by the eCDF platform of the GovernmentIT Centre of LuxembourgThese features are planned to be shipped in a future release.For more information about the product, please refer to: SK Consulting S.A.49, rue de Cessange2441 LuxembourgLuxembourgTelephone: +352 2625 9117-1Email: ***********************Legal•Privacy Policy•Terms and Conditions•EULA。
FINC5001_Capital Markets & Corporate Finance_2009 Semester 1_FINC5001 Review Lecture
• Before-tax and after-tax WACC • The effect of imputation • Байду номын сангаасalculating free cash flow
The Australian Equity Market
• Market participants
– Brokers – Fund managers – Individual investors
• How to raise finance
– Debt – Equity – Many different instruments
• Miller-Modigliani capital structure irrelevance
– What are the assumptions? – Why is capital structure relevant?
– Weak – Semi-strong – Strong
• Empirical evidence in Australia
Dividend Policy
• How do companies distribute a dividend
– Cash – Share buybacks – Dividend reinvestment plans
Structure of Final Exam
Closed book Only non-programmable calculators allowed Exam consists of four (4) questions All questions must be answered
Questions?
• And don’t forget... • Consultation
哥伦比亚大学佩里梅林货币银行学中英翻译4-微观和宏观的货币观
The Money View, Micro and Macro微观和宏观的货币观(see full matrix at beginning) Notable features—household deleveraging, switching from credit to money, instrument discrepancy is repo, sectoral discrepancies(⻅开始的完整矩阵)显着特征——家庭去杠杆化，信贷向货币的转变，回购⼯具分化，部⻔分化Last time we saw how the US banking system was born from the strains of war finance andfinancial crisis, and we also saw how understanding balance sheet relationships can help us to understand the underlying processes. Today we focus more specifically on the balance sheet approach that will be used throughout the course, and to aid that focus we confine our discussion to the most placid of events, namely the use of the banking system to facilitate ordinary daily exchange.上⼀次，我们看到了美国银⾏体系是如何在战争⾦融和⾦融危机的压⼒下诞⽣的，我们还看到了理解资产负债表的关系如何帮助我们理解基本流程。
今天，我们将更具体地关注在整个课程中使⽤的资产负债表⽅法，为了有助于集中精⼒，我们将讨论限制在最普遍的事件上，即使⽤银⾏系统促进⽇常交易。
FINC5001_Discipline of Finance_2009 Semester 1_FINC50011 - Lecture 2
Capital Markets and Corporate Finance (Streams 9/10):FINC5001Dr. Reuben SegaraFinance DisciplineSchool of BusinessUniversity of Sydney1A Review of FinancialMathematics2This LecturePart I: A Review of Financial Mathematics•Time value of money revisited•Simple Interest•Compound Interest–Future value and Present value of a Single Amount–Present Value and Future Value of Multiple Cash Flows•Frequency of compounding, Adjusting for different compounding intervals & Continuous compounding•The Stated Rate (Nominal) Vs. The Effective RatePart II: Annuities and Perpetuities•What are Annuities?; Type of Annuities•Type of annuity factors (Present Value Vs. Future Value)•Ordinary Annuity (Future value and Present Value)•Annuity Due (Future Value and Present Value)•Perpetuities (Constant Vs. Growing)3Time Value of Money Revisited •Understanding of the ‘time value of money’concept is critical to learning financial mathematics and security valuation.•The time value of money is often measured by using an interest rate.•Money decreases in relative value over time •$1 today is worth more than $1 next year •WHY?4This LecturePart I: A Review of Financial Mathematics•Time value of money revisited•Simple Interest•Compound Interest–Future value and Present value of a Single Amount–Present Value and Future Value of Multiple Cash Flows•Frequency of compounding, Adjusting for different compounding intervals & Continuous compounding•The Stated Rate (Nominal) Vs. The Effective RatePart II: Annuities and Perpetuities•What are Annuities?; Type of Annuities•Type of annuity factors (Present Value Vs. Future Value)•Ordinary Annuity (Future value and Present Value)•Annuity Due (Future Value and Present Value)•Perpetuities (Constant Vs. Growing)56Simple Interest•With simple interest, the amount of interest earned or paid is the same each period unless there is a change in interest rates.where:–I = the total amount of simple interest–r = the rate of interest per period (normally p.a)–P = principal (or present value)–t = the time in periods (normally years)–S = maturity value of P (or future value)I=P rt S=P + I S=P(1+)rt ∴Compound Interest•With compound interest, the amount of interest received or paid is calculated based on the principal and accumulated interest from previous periods•The dollar amount of interest is increasing over time•In essence, you will pay or receive ‘interest on interest’•Compound interest will be assumed for the remainder of this lecture14Recap on the Future Value and Present Value of MultipleCash Flows30A More Tricky Question?32QUESTION 6 (Cont’d)Value at 1 Jan. 2007 of $20,000 debtValue at 1 Jan. 2007 of $30,000 debtValue at 1 Jan. 2007 of $50,000 debtTherefore the single debt34Frequency of Compounding•Do banks calculate interest earned on a daily, monthly, quarterly, half-yearly or annual basis? •The more often interest is both calculated and credited, the more you will earn.•Interest calculated daily -and credited on thefirst business day of each month.35Frequency of Compounding •What would you choose?–Option A:$10,000 invested for fiveyears with interest calculated dailythen credited monthly–Option B:$10,000 invested for fiveyears with interest calculated quarterly then credited annually36Frequency of Compounding •Interest on most financial arrangements (such as housing loans or debentures) is normally paid more than once a year•Consequently, the effective interest rate paid by a home-loan borrower is greater than the statednominal rate•How do we account for this?Need to adjust the annual nominal interest rate to the effectiverate per compounding period.3745Types of Annuities1. Ordinary Annuities2. Annuity Due3. Deferred Annuity。
ACCT5001_Accounting Principles_2009 Semester 1_week11
ACCT5001 Week 11 Demo QuestionsQ9 Contrast the advantages and disadvantages of the direct and indirect methods. Are both methods acceptable? Which method is preferred by the IASB? Which method is preferred by the AASBQ19Give the formula under the direct method for computing (a) Cash receipts from customers See Slide 12(b) Cash payments to suppliers See Slide 15BE18.6Taza Company has accounts receivable of$14,000 as at 1 July 2006 and $21,000 as at 30 June 2007. Sales revenue for 2007 was $470,000. What was the amount of cash receipts from customers in 2007?This is the actual amount of cash collected during the period irrespective of when it was earnedOR Reconstruct the Accounts receivable accountAccounts Receivable1/7/06 Opening Bal 14,000* Cash 463,000Sales 470,000 30/6/07 Closing Bal 21,000 484,000484,0001/7/07 Opening Bal 21,000+ Decrease in accounts receivableReceipts from customers= Sales revenues– Increase in accounts receivableE18.8$317,000 and expenses (exclusive of depreciation) $250,000. The comparative balance sheet for the year shows that inventory increased $6,000, prepaid expenses decreased$6,000, accounts payable (inventory suppliers) decreased$8,000 and accrued expenses payable increased $8,000.(a) Cash payments to suppliers6 0008 000$331 000 OR RECONSTRUCT ACCOUNTS using ‘made up data’ as you are not told beginning or ending balances only the changeInventoryOpening Bal 100,000 COGS 317,000 Purchases* 323,000 Closing Bal 106,000423,000 423000 Opening Bal 106,000Accounts PayableOpening Bal 108,000 Cash** 331,000Closing Bal 100,000 Purchases* 323,000431,000 431,000Opening Bal 100,000 (b) Cash payments for expensesIncrease in accrued expenses payable… (8 000) Cash paid for expenses …………………… $236 000 Note: You need to understand why an item is + or – in theCash payments to suppliers COGS includes purchases that have not been sold but included in inventory, so an increase in inventory is added to COGS to isolate the cost of purchases. A decrease in accounts payable represents purchases that have been paid, so we must add this to obtain what was paid to suppliers.OR Reconstruct the Prepaid Expenses and Accrued Expenses accountsP18.6A & P18.5AIncome Statement Data2007000’sSales 220COGS (180)Selling expenses (6.5)Dep’n expense (7.5)Admin expense (8)Interest Expense (1)Tax Expense (4)Profit 13Balance Sheet data20072006 Change000’s000’s 000’sCash 31 13 +18A/c Receivable 28 14 +14 Inventory 25 35 -10PPE 60 78 * -18Accum Dep'n (22) (24) * -2A/c Payable 27 23 +4Tax Payable 5 8 -3Bonds Payable 27 35 -8Share Capital 18 14 +4 Retained Earnings 45 36 * +9 Additional informationDividends declared and paid during the year were 4,000PPE which cost 18,000 was sold for 8,500. This equipment had a carrying amount of 8,500 at the time of saleAll expenses except depreciation were paid in cashAll sales and purchases are credit Workings for operating activities(1) Collections from customers(2) Cash paid to suppliers(3) Cash paid for expenses (excluding dep’n & interest)(4) Payments for interest(5) Payments for taxOR Reconstruct the accounts for 1-5 aboveWorkings for investing and financing activities Reconstruction of accounts*P18.6A (DIRECT METHOD)Louis Zimmer CompanyStatement of Cash FlowsFor the Year Ended 31 December 2007$ Cash flows from operating activities....................Collection of cash from customers 1) Payments to suppliers ..................( 2)Payments for expenses (3)Payment for interest (4)Payment for tax.................................. 188,500 Net cash provided in operating activities.....Cash flows from investing activitiesSale of equipment..................................... 8 500Net cash provided in investment activities ..Cash flows from financing activitiesRedemption of bonds...................Issue of ordinary shares.................Payment of dividends...................(4 000)Net cash used in financing activities............ (8 000) Net increase in cash........................................Cash at beginning of period........................... 13 000Cash at end of period...................................... $31 000P18.5A (INDIRECT METHOD)As above, except cash flows from operating activities would have been calculated as follows:Cash Flows from Operating ActivitiesNet profit.......................................................... $Adjustments to reconcile from net profitto net cash provided in operating activitiesAdd Back depreciation exp........$Less Increase in A/c Rec.............Add Decrease in inventory.........Add Increase in A/c payable.........Less Decrease in tax payable…....(3 000) 4 500 Net cash provided in operating activities...... P18.8A2007000’sSales 600Gain Sale PPE 2.5COGS (500)Other Expense(excl depn) (60)Depn Expense (7.5)Interest Expense (5)Tax Expense (9)Profit 212007 2006 Change Cash 23 13 +10A/c Receivable 24 33 -9 Inventory 20 27 -7 Prepaid Exp 20 13 +7 Land 40 40 0 PPE 200 225 -25 Acc Depn * (50) (67.5) -17.5A/c Payable 9 18.5 -9.5 Other Payable 9.5 7.5 + 2 Interest Payable 1 1.5 -0.5 Tax Payable 3 2 +1 Bond Payable 50 80 -30 Share Capital 123 105 +18 Retained Earnings 81.5 69 +12.5 Additional InformationPPE was sold for 62.5. Additional PPE was purchased Dividends of 8.5 were paid during the yearP18.8AERNEST BANKS COMPANYStatement of Cash FlowsFor the Year Ended 31 December 2007Cash flows from operating activitiesCash receipts from customers.......$(1) Cash paymentsTo suppliers..............................$(2)For expenses (3)For interest (4)For income tax.......................... 8 000(5)581 000 Net cash provided in operating activitiesCash flows from investing activitiesPurchase of equipment...................Sale of PPE assets.......................... 62 500Net cash used by investing activities...Cash flows from financing activitiesDividends paid.................................Redemption of bonds payable........Issue of ordinary shares.................18 000Net cash used in financing activities....Net increase in cash..............................Cash at beginning of period..................13 000 Cash at end of period............................$23 000Workings(1) Sales................................................................. $Add: Decrease in A/c Rec............................. 9 000 ................................................................... $609 000(2) Cost of goods sold.......................................... $Less: Decrease in inventory..........................Add: Decrease in A/c Payable...................... 9 500 ................................................................... $502 500(3) Expenses......................................................... $Add: Increase Prepaid exp.............................Less: I ncrease Accrued exp payable.............. (2 000) ................................................................... $65 000(4) Interest expense..............................................Add: Decrease Interest payable (500)................................................................... $5 500(5) Income tax expense........................................ $Less: I ncrease Tax payable............................. (1 000) ................................................................... $8 000Reconstruction of AccountsPPEBal (end) 200 285 285 Bal (end) 81.5 . 90 90Dr Cash (proceeds from sale) Dr Accumulated depreciation Cr PPE (at cost) Cr Gain on sale of assetIf gain was and cash from sale was then carrying amount of the asset sold was If depreciation was then Acc Depn on asset sold was to obtain balance (end) of Acc Depn on asset sold was , then cost of asset sold was , if carrying amount of asset sold wasIf cost of asset sold was then asset purchases must have been to arrive at Bal (end) ofP18.7A ERNEST BANKS COMPANYStatement of Cash FlowsFor the Year Ended 31 December 2007 Cash flows from operating activities Net profit................................................... $Adjustments to reconcile net profit to net cash flowsAdd Depreciation expense................ $ Deduct Gain on sale of PPE.............. Add Decrease in A/c receivable........ Add Decrease in inventory................Deduct Increase in prepaid exp........ Deduct Decrease in A/c Payable....... Add Increase in Accrued exp payableDeduct Decrease in Interest payableAdd Increase in Tax payable............. 1 000 7 000Net cash provided in operating activities......Cash flows from investing activities Purchase of PPE....................................... Sale of PPE assets................................... 62 500 Net cash used in investing activities.............Cash flows from financing activities Dividends paid.......................................... Redemption of notes payable.................. Issue of ordinary shares.......................... 18 000 Net cash used in financing activities............. (20 500) )Net increase in cash....................................... Cash at beginning of period........................... 13 000 Cash at end of period ......................................$23 000Note: You should be able to explain why each of the items isFor example,Depreciation expense needs to be added back as it had been deducted to determine profit or loss but it is a non-cash item so it cannot be included in calculating net cash from operating activities for the period.Gain on sale needs to be deducted as it had been included in income but it is a non-cash item so it cannot be included in calculating net cash from operating activities for the period.Decrease in Accounts Receivable needs to be added as the reduction in the balance sheet asset from the previous year represents a collection of cash which was not included in profit or loss in this periodDecrease in Inventory needs to be added as the reduction in inventory has been included as a COGS expense but it did not represent inventory actually purchased in cash this period.Increase in Prepaid expense needs to be deducted because it has not been recognised as an expense for the period but it represents a cash flow of an operating activity item during the period.Decrease in Accounts Payable needs to be deducted because it represents a cash flow payment during the period of an operating item that was not recognised in the profit or loss calculation under accrual accounting (the purchase was recognised in the previous period).Increase in Accrued expense payable needs to be added back to net profit as it has been recognised as an expense for the period under accrual accounting even though there was no cash flow this period.Decrease Interest payable needs to be deducted because it represents a cash flow during the period of an operating item that was not recognised in the profit or loss calculation.Increase in Tax payable needs to be added back to net profit as tax has been recognised as an expense for the period under accrual accounting even though there was no cash flow this period.。
美国名校金融工程（MFE）专业大盘点
美国名校⾦融⼯程（MFE）专业⼤盘点⾦融⼯程这个名字很有迷惑性⾦融和⼯程这两个词对于⼤部分中国学⽣来说具有绝对的吸引⼒有⼈说⾦融⼯程是近年窜起速度最快的学科其深度远远超过MBA⾦融⽅⾯的课程有⼈说⾦融⼯程是可以上天的专业因为它综合了⾦融学、数学、计算机科学申请难度极⼤就业前景极好那么，美国各名校的⾦融⼯程专业到底设置了哪些课程其录取条件和就业形势如何呢？⼩编为⼤家吐⾎整理了这篇MFE专业⼤全Carnegie Mellon项⽬名称Master of ComputationalFinance开设院系Tepper商学院课程介绍学制为16个⽉，三个学期。
开学⽇期：每年8⽉末。
课程特点：1.同学可以参加由德意志银⾏组织的DeutscheTrading Competition，获胜者可以得到现⾦奖励及在德意志银⾏实习的机会。
2.MSCF项⽬顾问团队成员全部来⾃WallSt的投⾏录取要求要就读卡内基梅隆⼤学 (匹兹堡)需要雅思或托福成绩，要求雅思成绩总分为7，要求托福成绩总分为100，申请该专业就读需要2年的时间，需要本科⼯程⽅向背景：数学、计算机、⼯程学、经济学。
需要熟悉计算机应⽤：C, C++，有相关⼯作经验优先就业前景MSCF的毕业⽣主要从事DerivativesPricing and Trading, Risk Management, Research,Structured Products, Quantitative PortfolioManagement and Analytics SoftwareDevelopment。
其学⽣毕业后三个⽉的就业率为：2011年毕业⽣录取率为92%，2010年为88%，2009年为83%，2008年为96%UC Berkeley项⽬名称Master of Financial EngineeringProgram开设院系Berkeley主校园东南侧的Haas商学院课程介绍Berkeley的MFE要求修满28个学分的课程，⼀个学分对应15个课时，这其中包括MorganStanley的应⽤⾦融项⽬。
Financial Market_se2(08)_Le7_Tools and Conduct of Monetary Policy
Financial Market
2. Conduct of Monetary Policy 2.1. Goals of Monetary Policy High employment Two main reasons 1. high unemployment causes much human misery, with families suffering financial distress, loss of personal selfrespect, and increase in crime (though this last conclusion is highly controversial). 2. when unemployment is high, the economy has not only idle workers but also idle resources, resulting in a loss of output.
Semester 2, 2008
by Mr. Gu, Xin Faculty of International Business Tianjin Foreign Studies University
7/7/2014
FINC 3001, Financial Market, Semester 2, 2008, Faculty of International Business, TFSU
7/7/2014 FINC 3001, Financial Market, Semester 2, 2008, Faculty of International Business, TFSU 7
abcdefghijklmnopqrs-中欧法学院旧站
2014-2015学年证券法授课人：朱伟一教授目录一、简介二、证券的定义（一）投资合同（二）非法集资（三）理财产品（四）保险产品三、发行（一）首次公开发行（二）非公开发行（三）承销售商（四）资产证券化四、理财（一）证券投资基金（二）理财产品/信托产品（三）投资顾问与受信责任（四）合格境外机构投资者五、证券公司（一）证券公司（二）信托公司（三）经纪业务（四）创新业务（五）直接投资六、交易（一）股权分置改革（二）内幕交易（三）操纵（四）并购（五）金融期货交易七、监管（一）证券监管机构（二）自我监管组织八、公司治理（一）董事责任（二）高官薪酬九、中介机构（一）会计事务所（二）律师事务所（三）资信评级机构十、民事责任一、简介公司上市路线图中国资本市场路线图二、证券的定义（一）投资合同SEC V. EDWARDS (02-1196) 540 U.S. 389 (2004)300 F.3d 1281, reversed and remanded.Justice O’Connor delivered the opinion of the Court.―Opportunity doesn‘t always knock … sometimes it rings.‖ App. 113 (ETS Payphones promotional brochure). And sometimes it hangs up. So it did for the 10,000 people who invested a total of $300 million in the payphone sale-and-leaseback arrangements touted by respondent under that slogan. The Securities and Exchange Commission (SEC) argues that the arrangements were investment contracts, and thus were subject to regulation under the federal securities laws. In this case, we must decide whether a moneymaking scheme is excluded from the term ―investment contract‖simply because the scheme offered a contractual entitlement to a fixed, rather than a variable, return.IRespondent Charles Edwards was the chairman, chief executive officer, and sole shareholder of ETS Payphones, Inc. (ETS).*ETS, acting partly through a subsidiary also controlled by respondent, sold payphones to the public via independent distributors. The payphones were offered packaged with a site lease, a 5-year leaseback and management agreement, and a buyback agreement. All but a tiny fraction of purchasers chose this package, although other management options were offered. The purchase price for the payphone packages was approximately $7,000. Under the leaseback and management agreement, purchasers received $82 per month, a 14% annual return. Purchasers were not involved in the day-to-day operation of the payphones they owned. ETS selected the site for the phone, installed the equipment, arranged for connection and long-distance service, collected coin revenues, and maintained and repaired the phones. Under the buyback agreement, ETS promised to refund the full purchase price of the package at the end of the lease or within 180 days of a purchaser‘s request.In its marketing materials and on its website, ETS trumpeted the ―incomparable pay phone‖ as ―an exciting business opportunity,‖ in which recent deregulation had ―open[ed] the door for profits for individual pay phone owners and operators.‖According to ETS, ―[v]ery few business opportunities can offer the potential for ongoing revenue generation that is available in today‘s pay telephone industry.‖ App. 114—115 (ETS brochure); id.,at 227 (ETS website); see id., at 13 (Complaint ¶¶37—38).The payphones did not generate enough revenue for ETS to make the payments required by the leaseback agreements, so the company depended on funds from new investors to meet its obligations. In September 2000, ETS filed for bankruptcy protection. The SEC brought this civil enforcement action the same month. It alleged that respondentand ETS had violated the registration requirements of §§5(a) and (c) of the Securities Act of 1933, 68 Stat. 684, 15 U.S.C. § 77e(a), (c), the antifraud provisions of both §17(a) of the Securities Act of 1933, 114 Stat. 2763A—452, 15 U.S.C. §77q(a), and §10(b) of the Securities Exchange Act of 1934, 48 Stat. 891, as amended 114 Stat. 2763A—454, 15 U.S.C. §78j(b), and Rule 10b—5 thereunder, 17 CFR §240.10b—5 (2003). The District Court concluded that the payphone sale-and-leaseback arrangement was an investment contract within the meaning of, and therefore was subject to, the federal securities laws. SEC v. ETS Payphones, Inc., 123 F. Supp. 2d 1349 (ND Ga. 2000). The Court of Appeals reversed. 300 F.3d 1281 (CA11 2002) (per curiam). It held that respondent‘s scheme was not an investment contract, on two grounds. First, it read this Court‘s opinions to require that an investment contract offer either capital appreciation or a participation in the earnings of t he enterprise, and thus to exclude schemes, such as respondent‘s, offering a fixed rate of return. Id., at 1284—1285. Second, it held that our opinions‘requirement that the return on the investment be ―derived solely from the efforts of others‖was not satisfied when the purchasers had a contractual entitlement to the return. Id., at 1285. We conclude that it erred on both grounds.II―Congress‘purpose in enacting the securities laws was to regulate investments, in whatever form they are made and by whatever name they are called.‖Reves v. Ernst & Young,494 U.S. 56, 61 (1990). T o that end, it enacted a broad definition of ―security,‖sufficient ―to encompass virtually any instrument that might be sold as an investment.‖Ibid. Section 2(a)(1) of the 1933 Act, 15 U.S.C. §77b(a)(1), and §3(a)(10) of the 1934 Act, 15 U.S.C. § 78c(a)(10), in slightly different formulations which we have treated as essentially identical in meaning, Reves, supra, at 61, n. 1, define ―security‖ to include ―any note, stock, treasury stock, security future, bond, debenture, …investment contract, …[or any] instrument commonly known as a ‗security‘.‖―Investment contract‖ is not itself defined.The test for whether a particular scheme is an investment contract was established in our decision in SEC v. W. J. Howey Co.,328 U.S. 293 (1946). We look to ―whether the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others.‖Id., at 301. This definition ―embodies a flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.‖Id., at 299.In reaching that result, we first observed that when Congress included ―investment contract‖ in the definition of security, it ―was using a term the meaning of which had been crystallized‖by the state courts‘interpretation of their ―‗blue sky‘‖laws. Id., at 298. (Those laws were the precursors to federal securities regulation and were so named, it seems, because they were ―aimed at promoters who ‗would sell building lots in the blue sky in fee simple.‘‖ 1 L. Loss & J. Seligman, Securities Regulation 36, 31—43 (3d ed. 1998) (quoting Mulvey, Blue Sky Law, 36 Can. L. Times 37 (1916)).) The state courts had defined an investment contract as ―a contract or scheme for ‗the placing of capital or laying out ofmoney in a way intended to secure income or profit from its employment,‘‖and had ―uniformly applied‖ that definition to ―a variety of situations where individuals were led to invest money in a common enterprise with the expectation that they would earn a profit solely through the efforts of the promoter or [a third party].‖Howey, supra, at 298 (quoting State v. Gopher Tire & Rubber Co., 146 Minn. 52, 56, 177 N. W. 937, 938 (1920)). Thus, when we held that ―profits‖ must ―come solely from the efforts of others,‖ we were speaking of the profits that investors seek on their investment, not the profits of the scheme in which they invest. We used ―profits‖ in the sense of income or return, to include, for example, dividends, other periodic payments, or the increased value of the investment.There is no reason to distinguish between promises of fixed returns and promises of variable returns for purposes of the test, so understood. In both cases, the investing public is attracted by representations of investment income, as purchasers were in this case by ETS‘invitation to ―‗watch the profits add up.‘‖App. 13 (Complaint ¶38). Moreover, investments pitched as low-risk (such as those offering a ―guaranteed‖fixed return) are particularly attractive to individuals more vulnerable to investment fraud, including older and less sophisticated investors. See S. Rep. No. 102—261, Vol. 2, App., p. 326 (1992) (Staff Summary of Federal T rade Commission Activities Affecting Older Consumers). Under the reading respondent advances, unscrupulous marketers of investments could evade the securities laws by picking a rate of return to promise. We will not read into the securities laws a limitation not compelled by the language that would so undermine the laws‘ purposes.Respondent protests that including investment schemes promising a fixed return among investment contracts conflicts with our precedent. We disagree. No distinction between fixed and variable returns was drawn in the blue sky law cases that the Howey Court used, in formulating the test, as its evidence of Congress‘ understanding of the term. Howey,supra, at 298, and n. 4. Indeed, two of those cases involved an investment contract in which a fixed return was promised. People v. White, 124 Cal. App. 548, 550—551, 12 P.2d 1078, 1079 (1932) (agreement between defendant and investors stated that investor would give defendant $5,000, and would receive $7,500 from defendant one year later); Stevens v. Liberty Packing Corp.,111 N. J. Eq. 61, 62—63, 161 A. 193, 193—194 (1932) (―ironclad contract‖ offered by defendant to investors entitled investors to $56 per year for 10 years on initial investment of $175, ostensibly in sale-and-leaseback of breeding rabbits).None of our post-Howey decisions is to the contrary. In United Housing Foundation, Inc. v. Forman,421 U.S. 837(1975), we considered whether ―shares‖in a nonprofit housing cooperative were investment contracts under the securities laws. We identified the ―touchstone‖ of an investment contract as ―the presence of an investment in a common venture premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others,‖ and then laid out two examples of investor interests that we had previously found to be ―profits.‖Id.,at 852. Those were ―capital appreciation resulting from the development of the initial investment‖ and ―participation inearnings resulting from the use of investors‘ funds.‖Ibid. We contrasted those examples, in which ―the investor is ‗attracted solely by the prospects of a return‘‖ on the investment, with housing cooperative shares, regarding which the purchaser ―is motivated by a desire to use or consume the item purchased.‖Id., at 852—853 (quoting Howey, supra, at 300). Thus, Forman supports the commonsense understanding of ―profits‖ in the Howey test as simply ―financial returns on . . . investments.‖ 421 U.S., at 853.Concededly, Forman‘s illustrative description of prior decisions on ―profits‖ appears to have been mistaken for an exclusive list in a case considering the scope of a different term in the definition of a security, ―note.‖See Reves, 494 U.S., at 68, n. 4. But that was a misreading of Forman, and we will not bind ourselves unnecessarily to passing dictum that would frustrate Congress‘intent to regulate all of the ―countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.‖Howey, 328 U.S., at 299.Given that respondent‘s position is supported neither by the purposes of the securities laws nor by our precedents, it is no surprise that the SEC has consistently taken the opposite position, and maintained that a promise of a fixed return does not preclude a scheme from being an investment contract. It has done so in formal adjudications, e.g., In re Abbett, Sommer & Co., 44 S. E. C. 104 (1969) (holding that mortgage notes, sold with a package of management services and a promise to repurchase the notes in the event of default, were investment contracts); see also In re Union Home Loans (Dec. 16, 1982), 26 S. E. C. Docket 1517 (report and order regarding settlement, stating that sale of promissory notes secured by deeds of trust, coupled with management services and providing investors ―a specified percentage return on their investment,‖ were investment contracts), and in enforcement actions, e.g., SEC v. Universal Service Assn., 106 F.2d 232, 234, 237 (CA7 1939) (accepting SEC‘s position that an investment scheme promising ―assured profit of 30% per annum with no chance of risk or loss to the contributor‖ was a security because it satisfied the pertinent substance of the Howey test, ―[t]he investment of money with the expectation of profit through the efforts of other persons‖); see also SEC v. American Trailer Rentals Co.,379 U.S. 594, 598 (1965) (noting that ―the SEC advised‖ the respondent that its ―sale and lease-back arrangements,‖ in which investors received ―a set 2% of their investment per month for 10 years,‖―were investment contracts and therefore securities‖ under the 1933 Act).The Eleventh Circuit‘s perfunctory alternative holding, that respondent‘s scheme falls outside the definition because purchasers had a contractual entitlement to a return, is incorrect and inconsistent with our precedent. W e are considering investment contracts. The fact that investors have bargained for a return on their investment does not mean that the return is not also expected to come solely from the efforts of others. Any other conclusion would conflict with our holding that an investment contract was offered in Howey itself. 328 U.S., at 295—296 (service contract entitled investors to allocation of net profits).∙We hold that an investment scheme promising a fixed rate of return can be an ―investment contract‖ and thus a ―security‖ subject to the federal securities laws. The judgment of the United States Court of Appeals for the Eleventh Circuit is reversed, and the case is remanded for further proceedings consistent with this opinion.∙It is so ordered.Silver Hills Country Club v. Sobieski , 55 Cal.2d 811[S. F. No. 20664. In Bank. May 18, 1961.]SILVER HILLS COUNTRY CLUB et al., Respondents, v. JOHN G. SOBIESKI, as Commissioner of Corporations, Appellant.OPINIONTRAYNOR, J.Petitioners are partners in a venture to organize the Silver Hills Country Club in Marin County and to conduct it as a business for profit. In June 1959 they contracted to purchase for $75,000 a 22-acre ranch including a 10-room house, two smaller houses, a stable, and other improvements. The contract of sale provided for a down payment of $400, a payment of $50,000 18 months from the date of the contract, and the payment of $1,000 a month to begin three years from the date of the contract. At the time of the proceeding below petitioners had paid only the $400 down payment.After making the down payment and taking possession of the property petitioners sowed grass, installed a swimming pool, and remodeled the main building adding showers, a steamroom, and health and exercise equipment. They plan to make further improvements including additional swimming pools and a nine-hole golfcourse.They have financed these improvements in part by the sale of memberships in the country club. To date they have sold 110 "charter memberships" for $150 each. They have also given out 60 "honorary charter memberships." They plan to sell a total of 200 "charter memberships" for $150 each, thereby raising $30,000; 300 memberships for $200 each, thereby raising $60,000, and 500 memberships for $250 each, [55 Cal.2d 813] thereby raising $75,000. The price of a membership is to increase as additional facilities are added to the club. Golf memberships are to be offered at a later time for an additional $200 each. Apart from the price of a membership a member must also pay monthly dues, the amount of which is fixed at the time he purchases his membership.Both the membership application and the bylaws provide that a member has no rights in the income or assets of the club. A member and his immediate family, however, have the right to use all of the club facilities except the golf course, for which special membership is required. A member cannot be expelled except for misbehavior or failure to pay the monthly dues. The membership is transferable, but only to persons approved by the board of directors of the club.The Commissioner of Corporations has concluded that a membership interest in the country club is a security and that the sale thereof without a permit is prohibited by the Corporate Securities Act. (Corp. Code, § 25500.) fn. 1 On September 4, 1959, he issued a "Desist and Refrain Order" directing petitioners to stop the sale ofmemberships. After a hearing he denied petitioners' motion to vacate the order.petitioners then sought a writ of mandate in the superior court to compel the commissioner to vacate his order. The court granted the writ, and the commissioner appeals.Section 25008 of the Corporations Code defines a security as follows:" 'Security' includes all of the following:"(a) Any stock, including treasury stock; any certificate of interest or participation; any certificate of interest in a profit-sharing agreement; any certificate of interest in an oil, gas, or mining title or lease; any transferable share, investment contract, or beneficial interest in title to property, profits, or earnings."(b) Any bond; any debenture; any collateral trust certificate; any note; any evidence of indebtedness, whether interest-bearing or not."(c) Any guarantee of a security."(d) Any certificate of deposit for a security."The commissioner contends not only that a membership in the club is a beneficial interest in the title to property and [55 Cal.2d 814] therefore a security within the literal language of subdivision (a) of section 25008 but also that the purchase of such an interest is attended by the very risks the corporate securities act was designed to minimize.petitioners contend that a membership is not a beneficial interest in property, on the ground that a member of the club has no rights in either the assets or the income of the club, and that in any event a membership is not within the scope ofthe act on the ground that it is purchased, not for investment, but for the use and enjoyment of the purchaser.[1] Section 25008 defines a security broadly to protect the public against spurious schemes, however ingeniously devised, to attract risk capital. (People v. Syde, 37 Cal.2d 765, 768 [235 P.2d 601].) To effectuate this purpose the courts look through form to substance. (Domestic & Foreign Petr. Co., Ltd. v. Long, 4 Cal.2d 547, 555 [51 P.2d 73]; Oil Lease Service, Inc. v. Stephenson, 162 Cal.App.2d 100, 107-108 [327 P.2d 628]; see Securities & Exchange Com. v. Howey (W. J.) Co., 328 U.S. 293, 298 [66 S.Ct. 1100, 90 L.Ed. 1244, 163 A.L.R. 1043]; 14 Fletcher, Cyclopedia of Corporations, pp. 179-180; Loss, Securities Regulations, pp. 299-329; Dahlquist, Regulation and Civil Liability Under the California Corporate Securities Act, 33 Cal.L.Rev. 343, 357; 163 A.L.R. 1052-1053.) Thus, the sale of fur-bearing animals and the entrusting of those animals to the seller for care and disposition of the fur (Hollywood State Bank v. Wilde, 70 Cal.App.2d 103, 107 [160 P.2d 846]), the selling of "services" in procuring United States oil leases (Oil Lease Service, Inc. v. Stephenson, supra, 162 Cal.App.2d 100, 108-113), and the sale of orange groves coupled with a contract to have the vendor service the land (Securities & Exchange Comn. v. Howey (W. J.) Co., supra, 328 U.S. 293, 298) were all held to be sales of securities.[2] The purchaser of a membership in the present case has a contractual right to use the club facilities that cannot be revoked except for his own misbehavior or failure to pay dues. Such an irrevocable right qualifies as a beneficial interest in title to propertywithin the literal language of subsection (a) of section 25008. (See Yuba River Power Co. v. Nevada Irr. Dist., 207 Cal. 521, 523, 527 [279 P. 128]; cf. Civ. Code, § 654; Gov. Code, § 54030.) The crucial question nevertheless remains whether the sale of sucha membership comes within the regulatory purpose of the Corporate Securities Act.[3] It has been held that a contract providing only for the sale of services is not within the scope and purpose of the [55 Cal.2d 815] act. (People v. Syde, supra, 37 Cal.2d 765, 769.) In other states it has also been held that the sale of memberships in an organization in which members have no interest in the assets or profits is not a sale of securities. (Hacker v. Goldberg, 263 Ill. App. 73, 76; Creasy Corp. v. Enz Bros. Co., 177 Wis. 49 [187 N.W. 666, 667]; Lewis v. Creasey Corp., 198 Ky. 409 [248 S.W. 1046, 1049].) [4] In contrast "as a general rule, the sale of 'securities' that is condemned by the courts involves an attempt by an issuer to raise funds for a business venture or enterprise; an indiscriminate offering to the public at large where the persons solicited are selected at random; a passive position on the part of the investor; and the conduct of the enterprise by the issuer with other people's money." (Dahlquist, Regulation and Civil Liability Under the California Securities Act, supra, 33 Cal.L.Rev. 343, 360.)We have here nothing like the ordinary sale of a right to use existing facilities.petitioners are soliciting the risk capital with which to develop a business for profit. The purchaser's risk is not lessened merely because the interest he purchases is labelled a membership. Only because he risks his capital along with otherpurchasers can there be any chance that the benefits of club membership will materialize.[5] It bears noting that the act extends even to transactions where capital is placed without expectation of any material benefits. Thus from its exemption of securities of certain nonprofit companies fn. 2the act specifically excepts "notes, bonds, debentures, or other evidence of indebtedness whether interest-bearing or not." (Italics added.) [6] Since the act does not make profit to the supplier of capital the test of what is a security, it seems all the more clear that its objective is to afford those who risk their capital at least a fair chance of realizing their objectives in legitimate ventures whether or not they expect a return on their capital in one form or another.[7] Hence the act is as clearly applicable to the sale of promotional memberships in the present case as it would be had the purchasers expected their return [55 Cal.2d 816] in some such familiar form as dividends.properly so, for otherwise it could too easily be vitiated by inventive substitutes for conventional means of raising risk capital.The order of the trial court granting petitioners a writ of mandate is reversed. Gibson, C. J., Peters, J., White, J., and Dooling, J., concurred.McCOMB, J.I dissent.I would affirm the judgment of the Superior Court of the City and County of San Francisco (Orla St. Clair, J.), for the reasons expressed by Mr. Justice Shoemaker in theopinion prepared by him for the District Court of Appeal and concurred in by Mr. Presiding Justice Kaufman and Mr. Justice Draper, (Cal.App.) 9 Cal.Rptr. 694. Schauer, J., concurred.FN 1."No company shall sell any security of its own issue ... or offer for sale, negotiate for the sale of, or take subscriptions for any such security, until it has first applied for and secured from the commissioner a permit authorizing it so to do."FN 2."Except as otherwise expressly provided in this division, the Corporate Securities Law does not apply to any of the following classes of securities:"(a) Any security (except notes, bonds, debentures, or other evidences of indebtedness, whether interest-bearing or not) issued by a company organized under the laws of this State exclusively for educational, benevolent, fraternal, charitable, or reformatory purposes and not for pecuniary profit, no part of the earnings of which inures to the benefit of any private shareholder or individual." (Corp. Code, § 25102.) Opinion Information（二）非法集资最高法《关于审理非法集资刑事案件具体应用法律若干问题的解释》（2010年11月22日最高人民法院审判委员会第1502次会议通过)法释〔2010〕18号为依法惩治非法吸收公众存款、集资诈骗等非法集资犯罪活动，根据刑法有关规定，现就审理此类刑事案件具体应用法律的若干问题解释如下：第一条违反国家金融管理法律规定，向社会公众（包括单位和个人）吸收资金的行为，同时具备下列四个条件的，除刑法另有规定的以外，应当认定为刑法第一百七十六条规定的“非法吸收公众存款或者变相吸收公众存款”：（一）未经有关部门依法批准或者借用合法经营的形式吸收资金；（二）通过媒体、推介会、传单、手机短信等途径向社会公开宣传；（三）承诺在一定期限内以货币、实物、股权等方式还本付息或者给付回报；（四）向社会公众即社会不特定对象吸收资金。
international review of financial analysis名称缩写对照表
international review of financial analysis名称缩写对照表全文共四篇示例，供读者参考第一篇示例：International Review of Financial Analysis（IRFA）是国际金融分析评论的英文缩写。
IRFA是一个权威的金融学期刊，专注于金融理论和实践的研究和分析。
它发表了关于金融市场和机构、金融工程和衍生品、金融会计和审计、金融风险管理等方面的研究论文和评论。
IRFA每年出版多期，在学术和实务领域都有较高的知名度和影响力。
以下是对照表，列出了一些有关IRFA名称缩写的信息：1. IRFA：International Review of Financial Analysis中文翻译：国际金融分析评论2. 期刊简称：IRFA研究领域：金融理论和实践3. 主要关注内容：金融市场和机构、金融工程和衍生品、金融会计和审计、金融风险管理4. 出版频率：多期/年5. 影响力与知名度：在学术和实务领域都有较高的知名度和影响力IRFA的文章往往涉及到金融领域的前沿问题和热点议题，为研究人员、学者和实务人士提供了一个交流和分享研究成果的平台。
IRFA 也为读者提供了最新的金融理论和实践信息，帮助他们更好地了解金融市场的动态和发展趋势。
International Review of Financial Analysis（IRFA）是一个值得关注的金融学期刊，它为金融领域的研究和实践提供了重要的信息和资源。
希望通过这份对照表，读者能更加清晰地了解IRFA这一金融学术期刊的特点和意义。
第二篇示例：International Review of Financial Analysis（IRFA）是国际财务分析审查的简称，是一本具有高度影响力和声誉的财务研究期刊。
IRFA旨在促进学术界和实践界之间的交流和合作，推动财务分析领域的发展和创新。
本文将为读者介绍IRFA的名称缩写对照表以及该期刊的重要性和影响。
投资银行、FICC业务战略及最佳实践中文版
线上交易账户 线下交易账户
吸引客户 凭借强大的权益类交易产品增强客户粘 性
股票基金销售额 [十亿日元]
2,306 226
477
2,107 213 351
2,354 212
413
1,785 236 342
1,933 259 347
1,919 248 瑞穗证券 327 大和证券
1,603 1,543 1,729 1,207 1,327 1,343 野村证券
> 其它地区 (约占20% 的资产管理规模– 小部分高净值个人客户/ 20%机构业务（包括咨询服 务）
投资银行、FICC业务战略及最佳实践_中文版.pptx 7
野村证券在日本市场已占主导，为保持未来持续发展， 需以投资银行和全球市场业务为战略重点，力争国际化
野村证券的长期战略重点
国内零售部
日本 1
资产管理部(包括 投资银行部/ 全球财富管理) 全球市场部
2
业务长期持续发展
其他 地区
3
亚洲、美 国投资者 获取
年长投资者
> 实体营业部 – 忠诚的客户服务 – 面对面咨询服务
> 批发网络 > 自有线上交易
年轻投资者
资料来源:摩根大通
3,780 1,969
3,953 2,243
4,165 2,765
4,467 3,095
4,883 3,189
1,811 1,710 1,400 1,372 1,694 2005FY 2006FY 2007FY 2008FY 2009FY
– 面向每位客户提供一名销售负责人 – 定制化咨询服务 > 向线上交易转型，节约成本，服务忠诚 的二级市场客户
投资银行、FICC业务战略及最佳实践_中文版.pptx 14
ISFAA和COF
ISFAA和COFISFAA和COFISFAA全称international student financial aid application，COF全称international student certification of finances。
这两个表格都是collegeboard出的。
一般如果一个学校提供fa给国际学生的话，他们网站是可以下载ISFAA和COF的。
如果不提供奖学金，会有学校自己的类似COF的表格，比如verification of finances之类。
ISFAA和COF每年都会有新的表格，但貌似差不会太远。
表格的年份是你大一的学年，比如说我申请09入学，就用ISFAA 09-10和COF09-10。
以下我的讲解是根据09-10的表格。
我会把打好文字框的表格上传。
你们可以下载acrobat professional，最好版本在6.0以上，这个软件可以很灵活的编辑PDF文件。
我会在第2楼上传PDF编辑的教程。
考虑到你们以后的年份不同，不能直接用我的09-10表格，我在2楼讲一下。
如果要申请FA，把ISFAA，COF，银行存款，收入证明等一起寄给学校，大部分学校可以直接寄给admission office，小部分学校会要求寄给financial aid office。
要认真看学校网站。
填写原则：信息准确真实，填不了的地方，用N/A现在我讲下ISFAA吧。
按照项目顺序来。
1.性别姓名，不用多讲。
以后记住，surname，last name是姓，given name，first name是名，搞反了很麻烦。
2.Your permanent address。
地址可以写成两行，不要以老外能看懂为原则，因为老外只会抄的，而要以国内邮递员能翻译为原则，地区名，街道名，小区名就拼音好了。
国家名可以规范点，写P.R. China或者China Mainland，这涉及到政治问题，不多说，后面要写的国家名都照样。