Group work No.

1 - Lecture 1
Group Number: ……………………………..
Name: ………………………………………….

Question 1:
Are the following investing decision or financing decisions or dividend decisions? (Note:
There is one case in which the answer is both investing and financing decision)

a. Boeing began production b. VPbank returned $15 billion of c. VN Airlines Increased

of its 787 Dreamliner cash to its stockholders by its dividend per share
aircraft, at a forecast cost buying back their shares by 17%
of more than $7 billion.
d. Toyota opened new e. Hyundai increased short-term f. BP committed $500
production plants in borrowing by $3 billion in 2007, million to partnership
Thailand, China, and much of it through debt issues with University of
Russia in the U.S. California - Berkeley to
develop new sources of
energy
g. Citigroup acquired ABN h. In November 2007, Bank of i. Unilever financed R&D
AMRO Mortgage Group, a America sold a 4.9% stake in expenditures with
national originator and the firm to the Abu Dhabi reinvested cash flow
servicer of residential Investment Authority for $7.5 generated by sales of
mortgage loans, for $3 billion pharmaceutical
billion. products.
k. Pfizer spent $7.6 billion in 2006 l. Walmart opened more than 250 new m. CoopMart issued $750
on research and development of supercenters in the U.S. in 2007 and million of long term debt,
new drugs. 200 new units internationally. maturing in 2027 and paying
interest at 5.875% per year.

o. Tiger Pacific arranged bank credit p. Bank of America acquired

n. Union Pacific acquired about lines that will allow it to borrow up to LaSalle bank for $21 billion in
250 new locomotives in 2006 $2 billion if needed for its operations. 2007
s. Volkswagen borrows 350
q. Intel decides to spend $1 billion r. Bank of Australia financed the million Euros from Deutsche
to develop a new microprocessor acquisition largely through borrowing Bank
t. BP constructs a pipeline to bring
natural gas onshore from a u. Budweiser spends $200 million to
production platform in the Gulf of launch a new brand of beer in v. Pfitzer issues new shares to
Mexico European markets. buy a small biotech company
Question 2:
2.1. What are real assets?

2.2. What are financial assets?

2.3 Which of the following are financial assets, and which are real assets?
a. a patent
b. A share of stock issued by Bank of New York.
c. a blast furnace in a steel-making factory
d. A mortgage loan taken out to help pay for a new home
e. After a successful advertising campaign, potential customers' belief that FedEX will
deliver package promptly and reliably
f. An IOU("I owe you") form your brother-in-law