CORPORATE FINANCE MINICASE 4 Scholarship Essay Example | Topics and Well Written Essays - 2000 words

CORPORATE FINANCE MINICASE 4 - Scholarship Essay Example 0 1 2 3 | | | | -1 2 FV = $1(1 + i)3 = $2. $1(1 + i)3 = $2. (1 + i)3 = $2/$1 = 2. 1 + i = (2)1/3 1 + i = 1.2599 i = 25.99%. e. What is the difference between an ordinary annuity and an annuity due What type of annuity is shown below How would you change it to the other type of annuity (Ehrhardt & Brigham, 2006) 0 1 2 3 | | | | 100 100 100 An ordinary annuity has payments at the end of the period, while an annuity due date has payments in the beginning of the period. The annuity shown above is an ordinary annuity. To change it, just shift each payment to the left. This way there would be a 100 under 0 but none under 3. 0 1 2 3 | | | | 100 100 100 f. (1) What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10% (Ehrhardt & Brigham, 2006)0 1 2 3 | | | | 100 100 100 110 121 $331 FVAn = $100(1) + $100(1.10) + $100(1.10)2 =... k. Suppose on January 1 you deposit $100 in an account that pays a nominal, or quoted, interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or after 9 months (Ehrhardt & Brigham, 2006) It is an annuity in the sense that there are constant payments at regular intervals, but the intervals do not correspond with their compounding periods. In situation like these, we calculate the EAR and then treat it as an annuity. (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds (Hint: Think of annual compounding, when INOM= EFF%= IPER.) What would be wrong with your answer to Questions l-(1) and l-(2) if you used the nominal rate (10%) rather than the periodic rate (INOM/2= 10%/2 = 5%) (Ehrhardt & Brigham, 2006) m. Suppose someone offered to sell you a note calling for the payment of $1,000 fifteen months from today. They offer to sell it to you for $850. You have $850 in a bank time deposit that pays a 6.76649% nominal rate with daily compounding, which is a 7% effective annual interest rate, and you plan to leave the money in the bank unless you buy the note.

Main Reasons of Market-Garden Operation Failure Essay

Main Reasons of Market-Garden Operation Failure - Essay Example The Battle of Arnhem, known by its Allied codename of Operation ‘Market-Garden’, was the biggest airborne battle in the history, and the only attempt in the Second World War by the Allies to employ airborne troops in a strategic role in Europe. It was a battle of Army Groups numbering hundreds of thousands of men- 21st Army Group under Field Marshall Sir Bernard Montgomery in opposition to Army Group B under General Field Marshall Walther Model- but constantly its outcome hinged on the actions of small forces and individual battalions at critical points (Hercelode 2000, 61). Rather than a set-piece battle with a orderly beginning and end, it began on 17 September 1944 from a perplexed and daily changing pattern of events, and ended ten days later as the only major defeat of Montgomery’s career, and the only Allied defeat in the campaign in North-West Europe (Hercelode 2000, 62). The direct starting point of the Battle of Arnhem was actually Montgomery’s greatest victory, the Battle of Normandy. The annihilation of the original Army Group B in the Falaise Pocket in August 1944 at the end of the battle was a tragedy for Adolf Hitler’s Third Reich. Of 38 German divisions committed to Normandy, 25 were completely destroyed, with at least 240,000 men killed or wounded, and a further 200,000 taken prisoner. General Field Marshall Model, chosen on 18 August as both Commander-in-Chief West and commander of Army Group B, found himself organizing the disturbance of his shattered forces across northern France into Belgium and Holland (Hercelode 2000, 62).