Hawassa University Department of ABVM

individual assignment Financial management

1 Assignment I
The Due date of this assignment will be on May 5, 2015 E.c before 4:00 PM
Note copy to each other strictly your point give is zero

1. An ITO significantly higher than the industry average my indicate ?

2. An ITO significantly lower than the industry average my indicate ?

3. Discuss what you understand about Finance, why we need finance and how finance becomes
essential requirement of every organization and in our daily life of social, political and economic
arenas? Furthermore, discuss what financial management means and why it is required in the
personal and business arenas. What are major components of financial management and what
decisions are made by financial managers?

4. Assume financial institution offers to pay 6% compound semiannually . How much will yours
$10000 grow to in five years at this rate.

5.Assume is offered a contract that has the following terms ;An immediate cash outlay of Br
15000 followed by a cash inflow of Br 17900 three years from now what is the company rate of
return on this contract ?

5.A deposit of Br 1000 is made in an interest bearing account that pays 10% compounded years
the inventory goal is Br 1500 .How many years must the principal earn compound interest
before the desired amount is realized?