FIN 307 Grantham University Wk 2 Financial Ratios Questions Discussions

FIN 307

Grantham University

FIN

### Question Description

Need help with my Accounting question - I’m studying for my class.

The requirements below must be met for your paper to be accepted and graded:

Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.

Use font size 12 and 1” margins.

Include cover page and reference page.

At least 80% of your paper must be original content/writing.

No more than 20% of your content/information may come from references.

Use at least three references from outside the course material; one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.

Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

References must come from sources such as scholarly journals found in EBSCOhost or on Google Scholar, government websites and publications, reputable news media (e.g. CNN , The Wall Street Journal, The New York Times) websites and publications, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

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Attached.

1

Questions.
Student name.
Institution name.
Course name.

QUESTIONS

2

Questions.
I.

(PV) is the present value of money expected to make a certain value of return within a
certain period of time. (I) annual interest rate. INT; amount of interest earned within a given
period. FVN ; the future value of a payment after n period of time. PVAN ; refers to the
present value of annuity, n represents the amount of period for the payment of the annuity.
PMT; payment made within a fixed period of time. M; it denotes the number of interest
computed in the EAR equation per year. INOM; is the rate charged by financial institution.

II.

Opportunity cost rate.
It is the amount of return generated by a certain amount of money when invested in an
alternative business with the same amount of risk (Chang, 2003).

III.

Annuity; fixed amount of money paid within a year. Lump sum payment; payment made at
once without installments. Cash flow; Virtual money involved in business transactions.
Uneven cash flow stream; opposite of annuity, money paid without following a certain
order.

IV.

Ordinary (or deferred) annuity; equal payments made after the elapsing of consecutive
payment period. Annuity due; repeating payments made for a certain period of time.

V.

Perpetuity; bonds without maturity period. Consol; a debt without an expected return
without a certain period of time.

VI.

Outflow; money paid as a cost of operation. Inflow; money received from business
operations. Time line; a period of time when a certain payment is expected to be made.
Terminal value; value of business after estimating returns beyond the forecasted period.

VII.

Compounding; method used to determine the fu...

Boston College
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