Finance Discussion
1. What role does the time value of money play in determining the issue price of a bond? Your response should be in your own words. 2. What are some of the key limitations of using ratio analysis to evaluate the performance of an organization? Your response should be in your own words.
3. Provide an example of an annuity found in a business environment and how you would find the present value of that annuity. Your response should be in your own words.
4. Explain the three types of premiums and the role they play bond rates. Your response should be in your own words.
5. What is trend analysis and what information can it tell you about an organization that looking at the $ s on the financial statements alone cannot provide? Your response should be in your own words
6. What is common-size analysis and what information can it tell you about an organization that looking at the $ s on the financial statements alone cannot provide? Your response should be in your own words
7. Outline the key elements of the Efficient Markey Theory and identify which, if any, you feel most accurately depicts how our market behaves. Your response should be in your own words
8. Identify three key solvency ratios (debt and asset ratios), explain in your own words how they are calculated, and discuss what each ratio can tell about an organization s performance
9. Identify and explain the key elements that impact the time value of money.
Your response should be in your own words 10. Describe the CAPM theory and identify one criticism of this theory. Your response should be in your own words.