Finance






Compare Finance Questions and Answers

Finance....?

Q) Say you are an analyst with an investment management company and are asked to evaluate the following valuation methods as to the most appropriate for a possible venture index composed of dot.com companies that have no earnings, never had any earnings, and do not expect any earnings in the immediate future. a. DDM b. FCFE c. Price/Earnings d. Price/Book Out of the 4 methods which one would you select, and briefly explain of support for your selection, which could include why the other methods are inappropriate.

A) I would choose b. FCFE because at this point in time you are deal with a start up so they would not be paying dividends most likely (that eliminates DDM), they probably have negative or low earnings (so P/E is eliminated), and they probably don't have much in the way of real assets at this point (eliminating price/book). What you really want to know is if they have enough free cash flow (which is what the FCFE will give you) in order for you to judge whether or not they will be able to sustain themselves until they are profitable because if they can't they will go bankrupt. Good Luck!!!

Finance....?

Q) Say you are an analyst with an investment management company and are asked to evaluate the following valuation methods as to the most appropriate for a possible venture index composed of dot.com companies that have no earnings, never had any earnings, and do not expect any earnings in the immediate future. a. DDM b. FCFE c. Price/Earnings d. Price/Book Out of the 4 methods which one would you select, and briefly explain of support for your selection, which could include why the other methods are inappropriate.

A) FCFE- without dividends and /or earnings, DDM and P/E are useless. P/B may be acceptable, but always remember Cash is fact, equity is opinion. Cashflow is the mother's milk of commerce.

Finance...?

Q) I'm studying for finals and looking over an old test. Its multiple choice and she circled the correct answer but i keep getting $928.39. Can someone please explain how i answer this problem? Thanks in advance...heres the question: The Carter Company's bonds that mature in 12 years have a par value of $1,000 and a coupon rate of 8%, with semi-annual coupon payments. The market interest rate for the bonds is 9% What is the price of these bonds? She has 927.52 marked as the correct answer but for some reason i think i remember her saying that she screwed it up and that 928.39 is the correct answer...ill double check on it and let you know if your still interested...if anyone can figure out how it was 927.52 please let me know ill keep ya posted...

A) i'm getting 928.39 as well. What did she say was the correct answer?? I tried really hard to get the 927... but I couldn't get to it. I think you're right; she made a mistake. Thanks for coming back with the info again tho.

Yahoo finance?

Q) Can you inform me if this transaction is legit. From: "Yahoo! Finance" <finance@yahoo.com> Add to Address Book Add Mobile Alert To: jaredstrunk@yahoo.com Subject: Yahoo! Finance Invoice Transaction ID 138120065 Date: Wed, 16 Aug 2006 22:57:59 -0700 Here is the invoice for your item! Dear Jared Strunk, Yahoo! Seller John Pederson has opted to conduct the transaction through Yahoo! Finance having you the Buyer for his item : 1. 1969 Dodge Charger General Lee 440 VIN Number: XP29FPB368425 The following terms were indicated by Seller : The total sale price : $5,800.00 Deposit : $2,900.00 Seller pays shipping . Inspection period : 3 day(s) Seller must ship the item in 8 day(s) to Buyer's address . -------------------------------------------------------------------------------- Seller selected Yahoo! Finance Premium Service for this transaction. Premium Service transactions are protected up to $10,000. -------------------------------------------------------------------------------- In order to speed up the process, Yahoo! Finance and The Seller agreed that you send payment via Western Union Money Transfer. If you are not familiarized with the Western Union Money Transfer service, please visit http://www.westernunion.com . You have to pay with cash at any Western Union office. Buyer is responsible for paying the Western Union transfer fees. To locate the nearest Western Union office,please click here: http://www.westernunion.com/info/agentInquiryIntl.asp -------------------------------------------------------------------------------- Delivery Information Name: Jared Strunk Address: 46 Waterplant Rd Stearns, KY 42647 United States of America Seller Address First Name: John Last Name: Pederson Street: 11 Coronation St City/State: Mansfield Zip code: NG18 2QL Country: United Kingdom How to make payment ? -------------------------------------------------------------------------------- 1. Locate the nearest Western Union Office; 2. Make the payment with cash using our agent's details below; 3. Send via fax the customer's copy of the money transfer at the following fax number : - (206)984-3611 - (206)350-0227 4. Do not make any marks on the transfer receipt copy. The following information must be readable : - the sender's and receiver's name and address - the Money Transfer Control Number (MTCN#) -------------------------------------------------------------------------------- Yahoo! Finance Agent Details First Name: Adam Last Name: Morrison Street: 14 Mark Lane City/State: London Zip code: EC3R 4NE Country: United Kingdom -------------------------------------------------------------------------------- Payments verification proccess usually takes less than 3 hous, after successfull verification seller will receive the verified payment confirmation and will be required to start the shipping process and submit shipping receipt for confirmation in 48 hours. Yahoo! Finance holds the payment until you confirm that you are satisfied with the product you received. During your inspection period, you have the option to accept or reject the item received. If you, as the Buyer, accept the terms and conditions indicated by Seller, proceed with the first step of the transaction : - Fax the payment details to Yahoo! Finance. -------------------------------------------------------------------------------- How does it work ? Buyer and Seller Agree to Terms Both parties agree to terms of the transaction, which includes a description of the merchandise, sale price and any shipping information Buyer Pays Yahoo! Finance The Buyer submits a payment, selecting cashier's check,Western Union, MoneyGram or wire transfer. Yahoo! Finance verifies the payment. Processing time varies by payment method. Seller Ships Merchandise Upon payment verification, the Seller is authorized to ship merchandise and submit tracking information. Yahoo Finance verifies that the Buyer receives the shipment. Buyer Accepts the Merchandise The Buyer has the option to accept or reject the merchandise. Yahoo! Finance Pays the Seller Yahoo! Finance pays the Seller by cashier's check,Western Union, MoneyGram or wire transfer. The transaction is complete. How Buyers are protected: Yahoo! Finance tracks the shipped merchandise and verifies it was delivered. The Seller isn't paid until the Buyer accepts the merchandise. How Sellers are protected: Yahoo! Finance confirms when the Buyer receives merchandise. The Seller is authorized to ship only after Yahoo! Finance verifies good funds. If you need to contact our Customer Support Department please respond to this email with information regarding your case by clicking the button below. Please do not respond to this message as your reply will not be received. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Hemscott Americas. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. S&P 500 index provided by Comstock. Fundamental company data provided by Capital IQ. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Yahoo! Finance is hiring Copyright © 2006 Yahoo! Inc. All rights reserved. The HTML graphics in this message have been displayed. [Edit Preferences - What's This?]

A) No way I would fall for this, if it sounds to good to be true then it probably is.

Finance Degree question?

Q) I have a finance degree with 30 credits in Finance and 30 credits in Business Administration but my school gave me a degree stating Bachelor of Business Administration. To me that is an insult because anybody can have a Bachelor of Business Administration but my school is not giving me my proper credit for putting in all that hard work in finance course by giving me Bachelors of Business Administration. My transcripts say Bachelor of Finance but my degree says Bachelor of Business Administration. What can I do to stand out from the crowd in my resume from those who have management, International Business, marketing, entrepreneurship, and etc majors? Because my friend has a degree from the University of Florida and it says Bachelor of Science in Finance.

A) Stand out? I'm afraid a BS isn't really going to help you stand out anyway. It is merely a stepping stone. An MBA is ante in the bigger game. On top of that you'll need an MS in Finance to stand out a bit. A law degree is a good differentiator as well. Aside from education there is one thing I look for on a resume that tells me quite a bit. How many successful startups have you had?

What finance education should I take?

Q) Hi I'm currently an IT consultant with IBM (6 years now). I'd like to find out what finance education I should take. The objective is not really to cross over into the finance world (i.e. become a banker, equity research analyst). Rather, I'd like to have a better, broad understanding of banking, financial markets and insurance. I'm also married with 2 children - so taking 2 years off work to study is not preferred (1 year full time is still ok). Some of the courses I am thinking of are: 1) Masters of Financial Engineering (National University of Singapore) 2) Masters of Financial Engineering (Nanyang Technological University) 3) CFA Exams - but I don't have experience hence can only take the exams, not get the CFA designation 4) Masters of Applied Finance (Macquarie University) 5) Masters of Applied Finance (University of Adelaide) Or is an MBA with Finance concentration a better idea? I'm not so keen on management topics at this stage of my career though - maybe later.

A) You have posed an interesting question. You plan to stay on with IBM but want to get an understanding of banking, financial markets and insurance. You would like to finish this in a year. You do not indicate where you live or what your undergraduate degree is in. If it is business or finance, your quest to finish in a year is realistic. If it is some thing else, you are realistically looking at a two year full time program or a part-time program that will take 3-4 years. The CFA program is unsuitable as you have stated yourself. The financial engineering programs do not match your objectives either. That leaves the applied finance programs. You may also want to start your search all over and specifically look for programs in banking and financial markets. Good luck! cc

What finance education should an IT consultant take?

Q) Hi I'm currently an IT consultant with IBM (6 years now). I'd like to find out what finance education I should take. The objective is not really to cross over into the finance world (i.e. become a banker, equity research analyst). Rather, I'd like to have a better, broad understanding of banking, financial markets and insurance. I'm also married with 2 children - so taking 2 years off work to study is not preferred (1 year full time is still ok). Some of the courses I am thinking of are: 1) Masters of Financial Engineering (National University of Singapore) 2) Masters of Financial Engineering (Nanyang Technological University) 3) CFA Exams - but I don't have experience hence can only take the exams, not get the CFA designation 4) Masters of Applied Finance (Macquarie University) 5) Masters of Applied Finance (University of Adelaide) Or is an MBA with Finance concentration a better idea? I'm not so keen on management topics at this stage of my career though - maybe later

A) You have posed an interesting question. You plan to stay on with IBM but want to get an understanding of banking, financial markets and insurance. You would like to finish this in a year. You do not indicate where you live or what your undergraduate degree is in. If it is business or finance, your quest to finish in a year is realistic. If it is some thing else, you are realistically looking at a two year full time program or a part-time program that will take 3-4 years. The CFA program is unsuitable as you have stated yourself. The financial engineering programs do not match your objectives either. That leaves the applied finance programs. You may also want to start your search all over and specifically look for programs in banking and financial markets. Good luck! cc

Finance SYMBOLS?

Q) HEY DUDES i wanna know how many symbols r there in yahoo finance?? and how can i get those symbols???? http://finance.yahoo.com/lookup in here if we type STG it comes the stock details about Stonepath Group Inc. isnt it ?? like that i want a way to take the whole yahoo finance details @ once !!!!!!!!!!!! or the whole yahoo finance symbols i wanna know the how they works like if theres only symbols A to C ?? or 1 to 4 in yahoo japan theres numbers !!! 1300 to 99997 like that i wanna know how they works !!!!

A) The number of symbols changes by the day. There are over 14,000+ stocks and 5,000+ mutual funds. If you want to add in options, there's a bunch more symbols. Is that what you're looking for? Hope that helps!

Re-finance car or sell?

Q) I'm moving to canada and my finance company (toyota financial services) won't let me take my car unless it's completely paid off. Is getting the car re-financed by a finance company in canada (I'm thinking the toyota finance services in Canada) better or should I sell it off in the US before coming? Kinda sad both the finance companies don't work to help their customer (I've talked to them both). Since Toyota's financed it they have the title and won't let me take it outside the US.

A) Who is going to stop you from driving your car across the Canadian border? I mean, what would Toyota have done, put an APB out for your car and have the FBI waiting on your arrival? I would have never told them anything about it. That's the craziest "rule" I've heard of. I assume, they are afraid they couldn't repossess it if you ever defaulted on the loan. At any rate, if you can get it finanaced in Canada, that's what I would do. You probably like your car and you know it's condition.

Career in Finance for BS(Computer Science) + 8 Year Experience?

Q) Current Job: Technology Architect Current Salary: 150-200K approx. Experience: 8 years Current Education: B.S.(Computer Science) Family: Small kid and working wife :) Ambition: Carve out a highly rewarding career for myself in Finance. By rewarding I mean annual income of atleast 1 million. Please do not think of me as greddy. It is just that I want to progress along my career to greater hieghts. I am not sure if this is the right move but my heart keeps telling me that I need to do this. Please guide me... here is my dilema. I want to get into finance as it is the most highly rewarding industry. I also do have lot of interest in finance (not that I dont have interest in my current field). I want to reach the higher levels but do not know much about finance field. I need to guidance on if it is really as rewarding as I think. What are the various fields in Finance that are most rewarding (like Fund management, etc etc) ? What is required of me to achieve?

A) Hard work and dedication..