1 / 18

Family Finance

Family Finance. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 11 th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001.

newton
Download Presentation

Family Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Family Finance

  2. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 11th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001. Millar R., A Complete Guide to Family Finance, Kogan Page Publishers 2004. Israelsen C. L. , R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006. Family Finance

  3. The aim of family financial management? • Maximization of family wealth: • First: how we calculate realization of the general aim in nonfamily financial management?

  4. 10 steps to Value • CR • Operating Cycle • Assets • AP • Capital invested Capital structure FCF forecasting IRR Cost of Capital (CC) ∆ V

  5. Family Finance cases: • Create himself or buy? (home products, home food or in restaurants, who should repair a tap, husband or plumber (tap expert), hire a maid? etc. • Child in home or in kindergarden? • (Homeschooling) Child in home or in school? • Car: buy older but without the credit or a new but with credit? • How many cars in a family? • House or a flat? Why? • A garden or a free time with fruits from a hipermarket? • What kind of car? Which one?

  6. Create himself or buy? • Two + four family (2p + 4 ch). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

  7. Create himself or buy? • Two adults family (2a). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

  8. Create himself or buy? • Two + one + seven family (2p + 1g + 7 ch). • One warm dish for one person costs 5 euros in town. It take 1 hour to wait in queue and finaly after eating coming home. Eating takes 0.5 hour. For parents use work equivalent. • Preparation of 6 dishes takes 2 hour daily and A euro / person for raw materials and energy for preparation of meal for whole family. • 1hour of work of homekeeper: 3.5 euros per 1 hour. Its the work equivalent. • For home food preparation we need additional equipment: cooker, dishwasher, greater fridge. It costs 400 euros initial investment and its economical lifetime is: 7 years. NWC = n * 5% of CE in case of home food. • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

More Related