CGA FA1 课件 chapter 10.ppt

p. 455 Search for Your Best Rate Q: What should you do if the dealer “trash-talks” your lender, or refuses to sell you the car for the agreed-upon price unless you get your car loan through the dealer? A: Experts suggest that if the dealer “trash-talks” your lender or refuses to sell you the car at the agreed-upon price unless you get your financing through the dealer, get up and leave, and buy your car somewhere else. p. 447 When to Go Long-Term Q: Based on this story, what is a good general rule to use in choosing between short-term and long-term financing? A: In general, it is best to finance short-term assets with current liabilities and long-term assets with non-current liabilities, in order to reduce the likelihood of a liquidity crunch such as this. p. 456 “Covenant-Lite” Debt Q: How can financial ratios such as those covered in this chapter provide protection for creditors? A: Financial ratios such as the current ratio, debt to total assets ratio, and the times interest earned ratio provide indications of a company’s liquidity and solvency. By specifying minimum levels of liquidity and solvency, as measured by these ratios, a creditor creates triggers that enable it to step in before a company’s financial situation becomes too dire. If you are to receive the single future amount of $1,000 in two years, discounted at 10%, its present value is $826.45 [($1,000 1.10) 1.10]. Present Value Concepts Related to Bond Pricing Present Value of Face Value SO 9 Compute the market price of a bond. Illustration 10A-3 To compute the answer using a Present Value of 1 table. ($1,000 X .82645) = $826.45 (10% per period, two periods from now). Present Value Concepts Related to Bond Pricing Present Value of Face Value SO 9 Compute the market price of a bond. TABLE 10A-1 In addition to receiving the face value of a bond at maturity, an investor also receives periodic interest payments (annuities) over the life of the bonds. To compute the present value of an annuity, we