# Equity Finance Essay

1496 Words Nov 9th, 2015 6 Pages
Chapter 2

Probability Concepts and Applications

Teaching Suggestions

Teaching Suggestion 2.1: Concept of Probabilities Ranging From 0 to 1.

People often misuse probabilities by such statements as, “I’m 110% sure we’re going to win the big game.” The two basic rules of probability should be stressed.

Teaching Suggestion 2.2: Where Do Probabilities Come From?

Students need to understand where probabilities come from. Sometimes they are subjective and based on personal experiences. Other times they are objectively based on logical observations such as the roll of a die. Often, probabilities are derived from historical data—if we can assume the future will be about the same as the past.

Teaching Suggestion 2.3:
Table 2.4 has some useful examples of both discrete and continuous random variables.

Teaching Suggestion 2.7: Expected Value of a Probability Distribution.

A probability distribution is often described by its mean and variance. These important terms should be discussed with such practical examples as heights or weights of students. But students need to be reminded that even if most of the men in class (or the United States) have heights between 5 feet 6 inches and 6 feet 2 inches, there is still some small probability of outliers.

Teaching Suggestion 2.8: Bell-Shaped Curve.

Stress how important the normal distribution is to a large number of processes in our lives (for example, filling boxes of cereal with 32 ounces of cornflakes). Each normal distribution depends on the mean and standard deviation. Discuss Figures 2.8 and 2.9 to show how these relate to the shape and position of a normal distribution.

Teaching Suggestion 2.9: Three Symmetrical Areas Under the Normal Curve.

Figure 2.14 is very important, and students should be encouraged to truly comprehend the meanings of ±1, 2, and 3 standard deviation symmetrical areas. They should especially know that managers often speak of 95% and 99% confidence intervals, which roughly refer to ±2 and 3 standard deviation graphs. Clarify that 95% confidence is actually ±1.96 standard deviations, while ±3 standard

## Related Documents

• ###### Finance Essay

are close to close to the established average. Yahoo Finance (2011) provides that Wal-Mart has a market capitalization amounting to \$ 191.15 billion and an enterprise value of \$ 240.15 billion which shows that Wal-Mart is a highly valuable company in the country. Wal-Mart’s market value has been stable for a period of time indicating that the company has registered steady performance. The company reduced total shareholder equity in 2011 fiscal year amounting to \$ 68.5 billion compared to \$…

Words: 2569 - Pages: 11
• ###### Essay Equity : Equity Vs. Equality

Equity vs. Equality in Canada Amanda Persaud Anthropology, Psychology, Sociology HSP3U0 Mr. B. Osborne December 8, 2015 Equity and equality are often mistaken to be the same thing however, both are there for their own purpose. Equity on one hand, is beneficial for society, improves the quality of life and is fair for all. On the other hand, equality promotes being the same and having the same starting point and the same treatment no matter the circumstances. Equity…

Words: 986 - Pages: 4
• ###### Essay Difference Between Equity And Equality And Equity

Equality and equity whilst having similar grounding in tertiary education, are different concepts working towards parallel aims. Certainly, there is no shortage of disagreement within the academic world on the definition if equity and equality, as Espinoza (2008, p. 343) states that there is disagreement and confusion about what the concepts of equity and equality really mean and what they involve. Equity recognises that there are some who are ‘worse off’ then others, which limits their access to…

Words: 804 - Pages: 4
• ###### Essay Finance

Corporate Finance: Theory & Practice 25557 Assignment 1) What are the appropriate costs of capital for the GPS transmitter and surveillance aircraft projects? The cost of capital is used to discount the expected cash flow of a proposed project to its present value to make an evaluation of whether to proceed or drop out the project. Normally, a company cost of capital or WACC is used as the discount rate for projects. However, as WACC represents the average rate of return demanded by investors in…

Words: 1499 - Pages: 6
• ###### Essay Questions On The Equity And Debt Funding

a number of resources, both internal and external (Zhang, 2014). In this paper, I will discuss methods for sourcing both equity and debt funding and assess the cost of capital in domestic and global context. In order for the funding requirement to be satisfied the business must consider drafting a business plan to identify the maximum funding that will be required to finance the business (Zhang, 2014). The j-curve refers to the changes in the cash flows after all operational and interest cash flows…

Words: 1460 - Pages: 6
• ###### Essay Notes On Finance And Finance Theory

Assessment 1 – Case Study (Individual) The role of finance is explained through the analyzing of financial to distinguish the different of finance theories. Finance theory including studying the different ways via individuals raise funds and businesses, spend those funds in the most profitable ways, and invest the excess in portfolios that reap the best return while keeping in check the risk factor. Therefore, the biggest challenges that finance faced is how to invest the funds to generate the required…

Words: 1932 - Pages: 8
• ###### Essay Finance in Tesco

any business. Most important sources of funds available to the organization are, * Equity capital- owner’s own saving * Long-term Loan, borrowed for period of five years or more * Short-term loan, borrowed for (1-4) years 1. Sources of Finance There are various sources of Finance for a business which can be categorized as External and Internal sources of Finance. 1.1 Internal sources of Finance: These sources do not require the agreement of any other person, party or organization…

Words: 2607 - Pages: 11
• ###### Essay Questions On Finance And Finance

FINANCE AND ACOUNTS DEPRTMENT Each company is carried with a cause of being profitable. Cash or capital being a scare in addition to vital aid in the working of any agency desires to accept prime significance. The financial resources were deliberate and managed in a proper and non-stop manner. As most of the maximum crucial choices of a firm are the ones which relate to finance. Finance & debts from an integral a part of any organisation. proper and clean functioning of this segment could be very…

Words: 1831 - Pages: 8
• ###### Essay The Finance For A Long Term Finance

The finance available for a long period especially three years and above is known as long-term. That is, repayment of the long-term finance can be done after three years. These finances are mainly used to purchase fixed assets. The popular long-term finance sources are owner 's capital, share capital, long-term loans, debentures, government loans and grants. Since Care UK provides health and social care services, it is very easy to get government loans and grants for their expansion. Share Capital:…

Words: 1046 - Pages:
• ###### Finance Essay

for BBM 312 Students only 1 CHAPTER ONE INTRODUCTION 1.1 Introduction Whether a business concern is big or small, it needs finance to fulfill its business activities. Finance may be defined as the art and science of managing money. According to Oxford dictionary, the word ‗finance‘ connotes ‗management of money‘. Webster‘s Ninth New Collegiate Dictionary defines finance as ―the Science on study of the management of funds‘ and the management of funds as the system that includes the circulation of…

Words: 23798 - Pages: 96