Financial Exam Help 123

Month: April 2014

  • Current Rate vs. Temporal: Why Two Methods?

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    by

    Bill Campbell
    in

    Truth be told, I have no idea what the exact reasons are that we use two strikingly different methods – the current rate method and the temporal method – for changing the values from those in one currency (the local currency) to those in another currency (the presentation currency).  However, I have developed (i.e., stumbled…

  • Amortization Tables

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    by

    Bill Campbell
    in ,

    Although you are not allowed to use Excel (or any other spreadsheet program) on the exam – you have to survive with your lowly financial calculator – it’s still useful to be able to create amortization tables in a spreadsheet, to help you visualize the cash flows and account balances in a variety of financial…

  • Marginal Cost of Capital: Break Points

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    by

    Bill Campbell
    in

    Typically, the more capital a company wants to raise, the more expensive it will be for each additional increment; i.e., as its capital budget grows, its marginal cost of capital (MCC) increases.  Because a company will undertake a project only when that project’s internal rate of return (IRR) is greater than the cost of capital…