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Solve annuity scenarios
Assessment Strategies
Math problems with Consumer/Business/Finance Applications using a Financial Calculator
Criteria
identify the characteristics of an annuity
differentiate between the present and future value of an annuity
calculate the present and/or future values of an annuity
calculate the net present value and internal rate of return
compute any unknown from given knowns in annuity scenarios
apply ordinary annuity calculations to business/consumer/financial scenarios
apply annuities due calculations to business/consumer/financial scenarios
apply deferred annuity calculations to business/consumer/financial scenarios
apply complex annuity calculations to business/consumer/financial scenarios
apply forborne annuity calculations to business/consumer/financial scenarios
answer with the precision of terms appropriate to the problem
answer in the correct units of measure and labels
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Solve amortization scenarios
Assessment Strategies
Math problems with Consumer/Business/Finance Applications using a Financial Calculator and Spreadsheet Software
Criteria
calculate a loan payment
calculate the amount of a sinking fund payment
calculate the future value of the sinking fund
calculate the periodic interest associated with a sinking fund
create amortization tables are created manually and via spreadsheet
answer with the precision of terms appropriate to the problem
answer in the correct units of measure and labels
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Solve interest rate scenarios
Assessment Strategies
Math problems with Consumer/Business/Finance Applications using a Financial Calculator and Spreadsheet Software
Criteria
calculate nominal and real interest rates given appropriate data
calculate the default risk premium
define and chart the term structure of interest rates
chart and interpret an inverted yield curve
define quantitative easing
define the pure expectations theory
answer in the correct units of measure and labels
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Create financial statements
Assessment Strategies
Corporate Financial Statements including Income Statement, Balance Sheet and Cash Flow Statement, Excel Spreadsheet Software
Criteria
create an income statement in excel - given required information in a word problem
create a balance sheet in excel – given required information in a word problem
create a cash flow statement in excel – given required information in a word problem
show connection and dependencies between the financial statements by using cell references in excel
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Analyze financial statements – horizontal/vertical analysis
Assessment Strategies
Corporate Financial Statements including Income Statement, Balance Sheet and Cash Flow Statement, Vertical/Common Size and Horizontal Statements, Excel Spreadsheet Software
Criteria
create a horizontal income statement in excel – (given an original statement); interpret the results
create a vertical/common size income statement in excel – (given an original statement); interpret the results
create a horizontal balance sheet in excel – (given an original statement); interpret the results
create a vertical/common size balance sheet in excel – (given an original statement); interpret the results
create a statement of stockholders equity – given relevant data
compute the free cash flow – given relevant data
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Analyze financial statements – ratio analysis
Assessment Strategies
Corporate Financial Statements including Income Statement, Balance Sheet and Cash Flow Statement (Growth, Liquidity, Profitability, Debt Ratios), Excel Spreadsheet Software
Criteria
create profitability ratios: gross margin, operating margin, net margin %, asset turnover (average), ROA, ROE, interest coverage ratio; interpret the results
compute growth ratios – year-over-year revenue growth, operating income percent, EPS, net income % change); interpret the results
compute liquidity ratios – current ratio, quick ratio – (given an original statement); interpret the results
compute leverage ratios- total debt ratio, long-term debt ratio, LTD to total capitalization, debt to equity ratio, LTD to equity ratio; interpret the results
compute efficiency ratios- inventory turnover, A/R turnover, average collection period, fixed asset turnover, total asset turnover; interpret the results
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Analyze bonds and their valuation
Assessment Strategies
Bond related exercises with Consumer/Business/Finance Applications using a Financial Calculator and Spreadsheet Software
Criteria
identify parts of a bond and define how interpreted
compute the price of a bond using a financial calculator
compute the price of a bond using a excel
compute the yield to maturity on a bond using a financial calculator
compute the yield to maturity on a bond using excel
compute price and yield for zero coupon bond using financial calculator and excel
compute price and yield for perpetuity using financial calculator and excel
define the contract language for the bond
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Analyze risk and rates of return
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
compute the value of a portfolio using the capital asset pricing model (CAPM)
measure stand-alone risk using the coefficient of variation
evaluate the risk and return for a stock portfolio by computing the expected value, variance and standard deviation
develop the security market line and compute risk premium changes (also compute the impact of inflation)
compute changes in a stock’s beta coefficient
use historical information to estimate required returns
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Analyze stocks and their valuation
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
compute the price of a stock using the Gordon Growth model
compute stock value using Constant Growth Model (calculator approach)
compute stock value using Constant Growth Model (excel approach)
compute stock value using Nonconstant Growth (calculator approach)
compute stock value using Nonconstant Growth (excel approach)
compute stock value using Corporate Valuation model (calculator approach)
compute stock value using Corporate Valuation model (excel approach)
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Evaluate investing in long-term assets: capital budgeting
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
compute the weighted average cost of capital
compute the optimal capital budget and the WACC
compute the risk and the cost of capital and the cost of debt
compute the cost of capital between projects and determine which is most advantageous to company
compute the internal rate of return of multiple projects (also MIRR)
compute the net present value of multiple projects
compute the profitability index for multiple projects
compute the payback period for multiple projects
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Perform cash flow estimation and risk analysis
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
compute the free cash flow versus accounting income
evaluate the timing of cash flows and incremental cash flows
identify sunk costs and opportunity costs associated with assets the firm owns
compute a sensitivity analysis and create a template using excel
compute a scenario analysis and create a template using excel
compute a Monte Carlo simulation and create a template using excel
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Manage working capital
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
compute the firm's current assets financing policy using the maturity matching or self-liquidating approach
differentiate between conservative, moderate and relatively aggressive approaches to current assets financing policies
calculate the targeted cash conversion cycle
compute the inventory conversion period
compute the average collection period
compute the payables deferral period
forecast the cash flows for a monthly cash budget
access how the credit policy will affect sales; document how to set up and implement the credit policy
compute the accounts receivable and accounts payable cost of trade credit
identify free trade credit versus costly trade credit and the impact
compute the nominal annual cost of trade credit
compute the effective annual cost of trade credit
differentiate between the following short term credit alternatives: bank loan, line of credit, revolving credit agreement, commercial paper, secured loans