# Fundamentals Level Skills Module, Paper F9

Save this PDF as:

Size: px
Start display at page:

## Transcription

3 Share options therefore go some way towards reducing the differences between the objectives of shareholders and managers. However, it is possible that managers may be rewarded for poor performance if share prices in general are increasing. It is also possible that managers may not be rewarded for good performance if share prices in general are falling. It is difficult to decide on a share option exercise price and a share option exercise date that will encourage managers to focus on increasing shareholder wealth while still remaining challenging, rather than being easily achievable. 2 (a) Financial analysis Fixed interest debt proportion (2006) = 100 x 2,425/ 2, ,600) = 60% Fixed interest debt proportion (2007) = 100 x 2,425/(2, ,225) = 43% Fixed interest payments = 2,425 x 0 08 = \$194,000 Variable interest payments (2006) = = \$80,000 or 29% Variable interest payments (2007) = = \$161,000 or 45% (Alternatively, considering the overdraft amounts and the average variable overdraft interest rate of 5% per year: Variable interest payments (2006) = 1 6m x 0 05 = \$80,000 or 29% Variable interest payments (2007) = 3 225m x 0 05 = \$161,250 or 45%) Interest coverage ratio (2006) = 2,939/ 274 = 10 7 times Interest coverage ratio (2007) = 2,992/ 355 = 8 4 times Debt/equity ratio (2006) = 100 x 2,425/ 11,325 = 21% Debt/equity ratio (2007) = 100 x 2,425/ 12,432 = 20% Total debt/equity ratio (2006) = 100 x (2,425 +1,600)/ 11,325 = 35% Total debt/equity ratio (2007) = 100 x (2,425 +3,225)/ 12,432 = 45% Discussion Gorwa Co has both fixed interest debt and variable interest rate debt amongst its sources of finance. The fixed interest bonds have ten years to go before they need to be redeemed and they therefore offer Gorwa Co long term protection against an increase in interest rates. In 2006, 60% of the company s debt was fixed interest in nature, but in 2007 this had fallen to 43%. The floating-rate proportion of the company s debt therefore increased from 40% in 2006 to 57% in The interest coverage ratio fell from 10 7 times in 2006 to 8 4 times in 2007, a decrease which will be a cause for concern to the company if it were to continue. The debt/equity ratio (including the overdraft due to its size) increased over the same period from 35% to 45% (if the overdraft is excluded, the debt/equity ratio declines slightly from 21% to 20%). From the perspective of an increase in interest rates, the financial risk of Gorwa Co has increased and may continue to increase if the company does not take action to halt the growth of its variable interest rate overdraft. The proportion of interest payments linked to floating rate debt has increased from 29% in 2006 to 45% in An increase in interest rates will further reduce profit before taxation, which is lower in 2007 than in 2006, despite a 40% increase in turnover. One way to hedge against an increase in interest rates is to exchange some or all of the variable-rate overdraft into long-term fixed-rate debt. There is likely to be an increase in interest payments because long-term debt is usually more expensive than short-term debt. Gorwa would also be unable to benefit from falling interest rates if most of its debt paid fixed rather than floating rate interest. Interest rate options and interest rate futures may be of use in the short term, depending on the company s plans to deal with its increasing overdraft. For the longer term, Gorwa Co could consider raising a variable-rate bank loan, linked to a variable rate-fixed interest rate swap. (b) Financial analysis Inventory days (365 x 2,400)/23, days (365 x 4,600)/34, days Receivables days (365 x 2,200)/26, days (365 x 4,600)/37, days Payables days (365 x 2,000)/23, days (365 x 4,750)/34, days Current ratio 4,600/3, times 9,200/7, times Quick ratio 2,200/3, times 4,600/7, times Sales/net working capital 26,720/1, times 37,400/1, times Turnover increase 37,400/26,720 40% Non-current assets increase 13,632/12,750 7% Inventory increase 4,600/2,400 92% Receivables increase 4,600/2, % Payables increase 4,750/2, % Overdraft increase 3,225/1, % 12

7 Fundamentals Level Skills Module, Paper F9 Financial Management December 2008 Marking Scheme Marks 1 (a) Rights issue price 1 Theoretical ex rights price per share 2 (b) Existing price/earnings ratio 1 Revised earnings per share 1 Share price using price/earnings method 1 Marks 3 3 (c) Discussion of share price comparisons 3 4 Calculation of effect on shareholder wealth and comment 1 2 Maximum 5 (d) Average dividend growth rate 2 Ex div market price per share 2 Discussion 2 6 (e) Discussion of agency problem 4 5 Discussion of share option schemes 4 5 Maximum (a) Discussion of effects of interest rate increase 3 4 Relevant financial analysis 1 2 Interest rate hedging 2 3 Maximum 7 (b) Financial analysis 5 6 Discussion of overtrading 4 5 Conclusion as to overtrading 1 Maximum 10 (c) Reduction in financing cost 2 Admininstration cost and bad debt savings 1 Factor s fee 1 Interest on advance 2 Net cost of factoring 1 Conclusion

8 Marks 3 (a) Cost of equity 2 Cost of debt 1 Market value of equity 1 Market value of debt 1 WACC calculation 1 (b) Inflated cash flows 1 Tax on cash flows 1 Capital allowance tax benefits 1 Working capital initial investment 1 Working capital incremental investment 1 Working capital recovery 1 Net present value calculation 1 Comment 1 Marks 6 8 (c) Explanation of use of CAPM 5 6 Discussion of limitations 6 7 Maximum (a) Relevant discussion 7 (b) Market value of each foreign bond 3 Total market value of foreign bonds 1 4 (c) (i) Explanation of money market hedge 2 Illustration of money market hedge 2 4 (ii) Comparison with forward market hedge 2 (d) Discussion of natural hedge 1 2 Description of other hedging methods 6 7 Maximum

### Paper F9. Financial Management. Fundamentals Pilot Paper Skills module. The Association of Chartered Certified Accountants

Fundamentals Pilot Paper Skills module Financial Management Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Do NOT open this paper

### 1 (a) Net present value of investment in new machinery Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales income 6,084 6,327 6,580 6,844

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2013 Answers 1 (a) Net present value of investment in new machinery Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales income 6,084

### Taxable cash flow 556 1,485 1,530 2,308 Taxation (167) (446) (459) (692) CA tax benefits

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2011 Answers 1 (a) Net present value evaluation of new confectionery investment Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales

### Contribution 787 1,368 1,813 983. Taxable cash flow 682 1,253 1,688 858 Tax liabilities (205) (376) (506) (257)

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2012 Answers 1 (a) Calculation of net present value (NPV) As nominal after-tax cash flows are to be discounted, the nominal

### Cash flow before tax 1,587 1,915 1,442 2,027 Tax at 28% (444) (536) (404) (568)

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2014 Answers 1 (a) Calculation of NPV Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales income 5,670 6,808 5,788 6,928 Variable

### Fundamentals Level Skills Module, Paper F9

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2009 Answers 1 (a) Weighted average cost of capital (WACC) calculation Cost of equity of KFP Co = 4 0 + (1 2 x (10 5 4 0)) =

### Question 1. Marking scheme. F9 ACCA June 2013 Exam: BPP Answers

Question 1 Text references. NPV is covered in Chapter 8 and real or nominal terms in Chapter 9. Financial objectives are covered in Chapter 1. Top tips. Part (b) requires you to explain the different approaches.

### Fundamentals Level Skills Module, Paper F9

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2008 Answers 1 (a) Calculation of weighted average cost of capital (WACC) Cost of equity Cost of equity using capital asset

### 1 (a) NPV calculation Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales revenue 5,614 7,214 9,015 7,034. Contribution 2,583 3,283 3,880 2,860

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2012 Answers 1 (a) NPV calculation Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales revenue 5,614 7,214 9,015 7,034 Variable

### Paper F9. Financial Management. Specimen Exam applicable from December 2014. Fundamentals Level Skills Module

Fundamentals Level Skills Module Financial Management Specimen Exam applicable from December 2014 Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections:

### Net revenue 785 25 1,721 05 5,038 54 3,340 65 Tax payable (235 58) (516 32) (1,511 56) (1,002 20)

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2013 Answers 1 (a) Calculating the net present value of the investment project using a nominal terms approach requires the

### 1 (a) Calculation of net present value (NPV) Year 1 2 3 4 5 6 \$000 \$000 \$000 \$000 \$000 \$000 Sales revenue 1,600 1,600 1,600 1,600 1,600

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2011 Answers 1 (a) Calculation of net present value (NPV) Year 1 2 3 4 5 6 \$000 \$000 \$000 \$000 \$000 \$000 Sales revenue 1,600

### Institute of Chartered Accountant Ghana (ICAG) Paper 2.4 Financial Management

Institute of Chartered Accountant Ghana (ICAG) Paper 2.4 Financial Management Final Mock Exam 1 Marking scheme and suggested solutions DO NOT TURN THIS PAGE UNTIL YOU HAVE COMPLETED THE MOCK EXAM ii Financial

### Examiner s report F9 Financial Management June 2013

Examiner s report F9 Financial Management June 2013 General Comments The examination consisted of four compulsory questions, each worth 25 marks. Most candidates attempted all four questions and there

### Fundamentals Level Skills Module, Paper F9. Section A. Monetary value of return = \$3 10 x 1 197 = \$3 71 Current share price = \$3 71 \$0 21 = \$3 50

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2014 Answers Section A 1 A Monetary value of return = \$3 10 x 1 197 = \$3 71 Current share price = \$3 71 \$0 21 = \$3 50 2

### Fundamentals Level Skills Module, Paper F9. Section A. Mean growth in earnings per share = 100 x [(35 7/30 0) 1/3 1] = 5 97% or 6%

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2015 Answers Section A 1 A 2 D 3 D Mean growth in earnings per share = 100 x [(35 7/30 0) 1/3 1] = 5 97% or 6% 4 A 5 D 6 B 7

### Paper F9. Financial Management. Friday 7 June 2013. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants.

Fundamentals Level Skills Module Financial Management Friday 7 June 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### Paper F9. Financial Management. Friday 6 December 2013. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Financial Management Friday 6 December 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### Paper F9. Financial Management. Friday 5 December 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Financial Management Friday 5 ecember 2014 Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections: Section A ALL 20 questions

### Time allowed Formulae Sheet, Present Value and Annuity Tables are on

Fundamentals Level Skills Module Financial Management Friday 15 June 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### Fundamentals Level Skills Module, Paper F9

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2007 Answers 1 (a) (i) Price/earnings ratio method valuation Earnings per share of Danoca Co = 40c Average sector price/earnings

### Paper F9. Financial Management. Specimen Exam applicable from September Fundamentals Level Skills Module

Fundamentals Level Skills Module Financial Management Specimen Exam applicable from September 2016 Time allowed: 3 hours 15 minutes This question paper is divided into three sections: Section A ALL 15

### Fundamentals Level Skills Module, Paper F9. Section B

Answers Fundamentals Level Skills Module, Paper F9 Financial Management September/December 2015 Answers Section B 1 (a) Market value of equity = 15,000,000 x 3 75 = \$56,250,000 Market value of each irredeemable

### Examiner s report F9 Financial Management December 2014

Examiner s report F9 Financial Management December 2014 General Comments The F9 examination paper consisted of two sections. Section A contained 20 multiple-choice questions worth two marks each. Section

### Paper F9. Financial Management. Thursday 10 June 2010. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Financial Management Thursday 10 June 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### CFS. Syllabus. Certified Finance Specialist. International benchmark in Finance profession

CFS Certified Finance Specialist Syllabus International benchmark in Finance profession Certified Finance Specialist Summary: This award will provide candidates the opportunity to gain advanced level knowledge

### Paper F9. Financial Management. Friday 6 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants.

Fundamentals Level Skills Module Financial Management Friday 6 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### Diploma in Financial Management Examination Module B Paper DB1 incorporating subject areas: Financial Strategy; Risk Management

Answers Diploma in Financial Management Examination Module B Paper DB1 incorporating subject areas: Financial Strategy; Risk Management June 2005 Answers 1 D Items 2, 3 and 4 are correct. Item 1 relates

### Paper F9. Financial Management. Friday 7 December 2012. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Financial Management Friday 7 December 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae

### Paper F9. Financial Management. September/December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Financial Management September/December 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This question paper is divided into two sections: Section A

### Examiner s report F9 Financial Management June 2011

Examiner s report F9 Financial Management June 2011 General Comments Congratulations to candidates who passed Paper F9 in June 2011! The examination paper looked at many areas of the syllabus and a consideration

### Source of Finance and their Relative Costs F. COST OF CAPITAL

F. COST OF CAPITAL 1. Source of Finance and their Relative Costs 2. Estimating the Cost of Equity 3. Estimating the Cost of Debt and Other Capital Instruments 4. Estimating the Overall Cost of Capital

### Examiner s report F9 Financial Management December 2012

Examiner s report F9 Financial Management December 2012 General Comments Congratulations to all those candidates who were successful in passing Paper F9 in December 2012! The overall performance in December

### Professional Level Skills Module, Paper P4

Answers Professional Level Skills Module, Paper P4 Advanced Financial Management December 2011 Answers 1 Up to 4 professional marks are available for the presentation of the answer, which should be in

### VASSETI (UK) PLC CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013 INTERIM MANAGEMENT REPORT (UNAUDITED) FOR THE 6 MONTHS ENDED 30 JUNE 2013 1. Key Risks and uncertainties Risks and uncertainties

### 6. Debt Valuation and the Cost of Capital

6. Debt Valuation and the Cost of Capital Introduction Firms rarely finance capital projects by equity alone. They utilise long and short term funds from a variety of sources at a variety of costs. No

### Financial Management (F9)

Financial Management (F9) This syllabus and study guide is designed to help with planning study and to provide detailed information on what could be assessed in any examination session. THE STRUCTURE OF

### Sources of, and raising short-term finance

E. BUSINESS FINANCE 1. Sources of, and raising short-term finance 2. Sources of, and raising long-term finance 3. Internal sources of finance and dividend policy 4. Gearing and capital structure considerations

### Actuarial Society of India

Actuarial Society of India EXAMINATIONS November 2004 SUBJECT - 108: Finance and Financial Reporting Indicative Solution S-108 Page 1 of 7 1 D 2 C 3 B 4 D 5 D 6 A 7 B 8 C 9 B 10 D 11 Trade credit is short-term

### FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management?

FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management? It is the application of planning and control functions of the finance

### RELEVANT TO ACCA QUALIFICATION PAPER F9

RELEVANT TO ACCA QUALIFICATION PAPER F9 Analysing the suitability of financing alternatives The requirement to analyse suitable financing alternatives for a company has been common in Paper F9 over the

### CHAPTER 22: FUTURES MARKETS

CHAPTER 22: FUTURES MARKETS PROBLEM SETS 1. There is little hedging or speculative demand for cement futures, since cement prices are fairly stable and predictable. The trading activity necessary to support

### DFA INVESTMENT DIMENSIONS GROUP INC.

PROSPECTUS February 28, 2015 Please carefully read the important information it contains before investing. DFA INVESTMENT DIMENSIONS GROUP INC. DFA ONE-YEAR FIXED INCOME PORTFOLIO Ticker: DFIHX DFA TWO-YEAR

### Financial Management (F9) 2011

Financial Management (F9) 2011 This syllabus and study guide is designed to help with planning study and to provide detailed information on what could be assessed in any examination session. THE STRUCTURE

Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria. Content 1 Introduction 2 Profit and loss Account or Income

### Selecting sources of finance for business

Selecting sources of finance for business by Steve Jay 08 Sep 2003 This article considers the practical issues facing a business when selecting appropriate sources of finance. It does not consider the

### Measurement Concepts for Banking, Trading, and Investing

Banking,, Banking,, for the MFM Orientation September 1, 2010 Banking,, If you are going to work with bankers, traders, or investment managers, it is important for you to understand the language and concepts

### INSTITUTE OF ACTUARIES OF INDIA. CT2 Finance and Financial Reporting MAY 2009 EXAMINATION INDICATIVE SOLUTION

INSTITUTE OF ACTUARIES OF INDIA CT2 Finance and Financial Reporting MAY 2009 EXAMINATION INDICATIVE SOLUTION General guidelines to markers: The solutions provided here are indicative ones. Please award

### Significant Accounting Policies

Apart from the accounting policies presented within the corresponding notes to the financial statements, other significant accounting policies are set out below. These policies have been consistently applied

### Financial Management (F9) September 2015 to June 2016

Financial Management (F9) September 2015 to June 2016 This syllabus and study guide are designed to help with planning study and to provide detailed information on what could be assessed in any examination

### Chapter. Working capital

Chapter 10 Working capital 1 10.1 Working capital Working capital is the capital available for conducting the day-to-day operations of the business and consists of current assets and current liabilities.

### ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

### ASPE AT A GLANCE Section 3856 Financial Instruments

ASPE AT A GLANCE Section 3856 Financial Instruments December 2014 Section 3856 Financial Instruments Effective Date Fiscal years beginning on or after January 1, 2011 1 SCOPE Applies to all financial instruments

### MCQ on Financial Management

MCQ on Financial Management 1. "Shareholder wealth" in a firm is represented by: a) the number of people employed in the firm. b) the book value of the firm's assets less the book value of its liabilities

### Business Valuations. Business Valuations. Shares Valuation Methods. Dividend valuation. method. P/E ratio. No growth. method.

Business Valuations 1. Objectives 1.1 Identify and discuss reasons for valuing businesses and financial assets. 1.2 Identify information requirements for the purposes of carrying out a valuation in a scenario.

### CIMA F3 Course Notes. Chapter 3. Short term finance

CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to

### Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

### INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited)

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) March 31,2000 TABLE OF CONTENTS CONSOLIDATED INCOME 2 CONSOLIDATED CONTINUITY OF EQUITY 3 CONSOLIDATED

### performance of a company?

How to deal with questions on assessing the performance of a company? (Relevant to ATE Paper 7 Advanced Accounting) Dr. M H Ho This article provides guidance for candidates in dealing with examination

### Financial-Institutions Management. Solutions 4. 8. The following are the foreign currency positions of an FI, expressed in the foreign currency.

Solutions 4 Chapter 14: oreign Exchange Risk 8. The following are the foreign currency positions of an I, expressed in the foreign currency. Currency Assets Liabilities X Bought X Sold Swiss franc (S)

### Seix Total Return Bond Fund

Summary Prospectus Seix Total Return Bond Fund AUGUST 1, 2015 (AS REVISED FEBRUARY 1, 2016) Class / Ticker Symbol A / CBPSX R / SCBLX I / SAMFX IS / SAMZX Before you invest, you may want to review the

### 1 WACC. 1.1 Introduction ILLUSTRATION 1.1: OVERALL INVESTORS REQUIRED RETURN

1 WACC 1.1 Introduction A business raises funds from its investors (both equity and debt investors) and uses those funds to try to generate returns. These investors are therefore taking a RISK by trusting

### What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated?

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK

### Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

### FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT PROFESSIONAL 2 EXAMINATION - AUGUST 2008 NOTES Answer all three questions from Section A. Answer two questions only from Section B. (If you provide answers to more questions than required

### FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS.

FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS December 31, 2014 Investment Adviser: MATSON MONEY, INC. 5955 Deerfield

Leader Short-Term Bond Fund Institutional Shares: Investor Shares: Class A Shares: Class C Shares: LCCIX LCCMX LCAMX LCMCX Leader Total Return Fund Institutional Shares: Investor Shares: Class A Shares:

### Catalyst/Princeton Floating Rate Income Fund Class A: CFRAX Class C: CFRCX Class I: CFRIX SUMMARY PROSPECTUS NOVEMBER 1, 2015

Catalyst/Princeton Floating Rate Income Fund Class A: CFRAX Class C: CFRCX Class I: CFRIX SUMMARY PROSPECTUS NOVEMBER 1, 2015 Before you invest, you may want to review the Fund s complete prospectus, which

### Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

### CIMA F3 Course Notes. Chapter 11. Company valuations

CIMA F3 Course Notes Chapter 11 Company valuations Personal use only - not licensed for use on courses 144 1. Company valuations There are several methods of valuing the equity of a company. The simplest

### Solutions to Chapter 4. Measuring Corporate Performance

Solutions to Chapter 4 Measuring Corporate Performance 1. a. 7,018 Long-term debt ratio 0. 42 7,018 9,724 b. 4,794 7,018 6,178 Total debt ratio 0. 65 27,714 c. 2,566 Times interest earned 3. 75 685 d.

1.0 FINANCING PRINCIPLES Module 1: Corporate Finance and the Role of Venture Capital Financing Financing Principles 1.01 Introduction to Financing Principles 1.02 Capitalization of a Business 1.03 Capital

### STUDENT CAN HAVE ONE LETTER SIZE FORMULA SHEET PREPARED BY STUDENT HIM/HERSELF. FINANCIAL CALCULATOR/TI-83 OR THEIR EQUIVALENCES ARE ALLOWED.

Test III-FINN3120-090 Fall 2009 (2.5 PTS PER QUESTION. MAX 100 PTS) Type A Name ID PRINT YOUR NAME AND ID ON THE TEST, ANSWER SHEET AND FORMULA SHEET. TURN IN THE TEST, OPSCAN ANSWER SHEET AND FORMULA

### Understanding A Firm s Financial Statements

CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,

### Construction Economics & Finance. Module 6. Lecture-1

Construction Economics & Finance Module 6 Lecture-1 Financial management: Financial management involves planning, allocation and control of financial resources of a company. Financial management is essential

### Financial Management

Mock Examination : ACCA Paper F9 Financial Management Session : June 2014 Prepared by : Mr Ian Lim Your Contact Number : I wish to have my script marked by the lecturer and collect the marked script at

### Dhanamitr Factoring Public Company Limited (Formerly: Dhanamitr Factoring Company Limited)

Annual financial statements and Audit report of Certified Public Accountant For the years ended 31 December 2005 and 2004 DHANA MITR FACTORING COMPANY LIMITED Notes to Financial Statements (Continued)

### Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

### t = 1 2 3 1. Calculate the implied interest rates and graph the term structure of interest rates. t = 1 2 3 X t = 100 100 100 t = 1 2 3

MØA 155 PROBLEM SET: Summarizing Exercise 1. Present Value [3] You are given the following prices P t today for receiving risk free payments t periods from now. t = 1 2 3 P t = 0.95 0.9 0.85 1. Calculate

### Chapter 7. . 1. component of the convertible can be estimated as 1100-796.15 = 303.85.

Chapter 7 7-1 Income bonds do share some characteristics with preferred stock. The primary difference is that interest paid on income bonds is tax deductible while preferred dividends are not. Income bondholders

### FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS

SYLLABUS Compulsory part Basic ratio analysis 1. State the general functions of accounting ratios. 2. Calculate and interpret the following ratios: a. working capital/current ratio, quick/liquid/acid test

### FINANCIAL MANAGEMENT (PART-7) WORKING CAPITAL MANAGEMENT PART 2

FINANCIAL MANAGEMENT (PART-7) WORKING CAPITAL MANAGEMENT PART 2 1. INTRODUCTION Dear Students, Welcome to the lecture series on financial management. Today in this lecture we shall cover the topic Working

### CHAPTER 14 COST OF CAPITAL

CHAPTER 14 COST OF CAPITAL Answers to Concepts Review and Critical Thinking Questions 1. It is the minimum rate of return the firm must earn overall on its existing assets. If it earns more than this,

### ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

### Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016.

NUVEEN INTELLIGENT RISK CONSERVATIVE ALLOCATION FUND SUPPLEMENT DATED APRIL 18, 2016 TO THE SUMMARY PROSPECTUS DATED DECEMBER 31, 2015 Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated

The consequence of failing to adjust the discount rate for the risk implicit in projects is that the firm will accept high-risk projects, which usually have higher IRR due to their high-risk nature, and

### Institutional Global Multi- Sector Bond Fund

SUMMARY PROSPECTUS RPGMX October 1, 2015 T. Rowe Price Institutional Global Multi- Sector Bond Fund A bond fund seeking high income and some capital appreciation. This fund is only available to institutional

### BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket

Glossary: The ETF Portfolio Challenge Glossary is designed to help familiarize our participants with concepts and terminology closely associated with Exchange- Traded Products. For more educational offerings,

### Rigensis Bank AS Information on the Characteristics of Financial Instruments and the Risks Connected with Financial Instruments

Rigensis Bank AS Information on the Characteristics of Financial Instruments and the Risks Connected with Financial Instruments Contents 1. Risks connected with the type of financial instrument... 2 Credit

### NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

### Prospectus Socially Responsible Funds

Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund

### G8 Education Limited ABN: 95 123 828 553. Accounting Policies

G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3

### (expenses that you pay each year as a percentage of the value of your investment)

July 31, 2015 SUMMARY PROSPECTUS SAAT Core Market Strategy Allocation Fund (SKTAX) Class A Before you invest, you may want to review the Fund s prospectus, which contains information about the Fund and

### Nuveen Tactical Market Opportunities Fund

Nuveen Tactical Market Opportunities Fund Summary Prospectus January 29, 2016 Ticker: Class A NTMAX, Class C NTMCX, Class I FGTYX This summary prospectus is designed to provide investors with key Fund

### Assurance and accounting A Guide to Financial Instruments for Private

june 2011 www.bdo.ca Assurance and accounting A Guide to Financial Instruments for Private Enterprises and Private Sector t-for-profit Organizations For many entities adopting the Accounting Standards

### Institute of Incorporated Public Accountants. Financial Management. Module 14. May 2014. Solutions

Institute of Incorporated Public Accountants Financial Management Module 14 May 2014 Solutions Instructions: Answer five questions Section A All three questions to be attempted Section B Two of the three

### CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended June 30, 2002

CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended June 30, 2002 Unaudited Unaudited Note Turnover 2 5,576 5,803 Other net losses (1) (39) 5,575 5,764 Direct costs and operating expenses (1,910)

### The cost of capital. A reading prepared by Pamela Peterson Drake. 1. Introduction

The cost of capital A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction... 1 2. Determining the proportions of each source of capital that will be raised... 3 3. Estimating the marginal