ENSC201 Assignment #6 Due Nov 7, 2007 (5%) 

In-class quiz

There will be a short 15 minute quiz at the end of next week's class. You will be quizzed on material referenced on "What's Hot" between Nov1 and Nov 7..

Check this page periodically for hints...here are some now:

1. What is an "accretive" acquisition? (mentioned by Dave Shore)

2. What is subordinated debt?

3. Here's one that isn't a hint (it's a given). Since you need to do the calculation, you can do this ahead of time and hand it in:
    You want to acquire a nice new Mazda5 that costs $21,385 by leasing or financing it. Which of the following is economically better?
    (Ignore any PST/GST aspects of this, i.e. assume PST/GST=0 (I wish!). These numbers are from an actual newspaper ad from last week.
    1.Lease (4years): downpayment of $2,965, pay $219/month for 4 years. Buy it for $9,550 at end of lease.
    2.Finance (3 years): downpayment of $1,385, pay $572/month for 3 years.
    (Having trouble? Don't know where to start? Try WebCT for any discussion on this. I'm happy to give tips)

4. What's the rule of 72?

Updated: 31Oct2007
Updated: 1Nov2007
Updated: 3Nov2007
Updated: 7Nov2007 to remove K after Mazda's price