# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

3 Pages

### optionals - chap 6

Course: FINC 450, Spring 2008
School: Loyola Chicago
Rating:

Word Count: 324

#### Document Preview

06 ________ Chapter 1. You can afford car payments of \$265 a month for three years. The interest rate is 7.5 percent, compounded monthly. How much can you afford to borrow to buy a car? a. \$8,269.67 b. \$8,271.83 c. \$8,519.20 d. \$8,572.44 You want to retire on the day you have \$500,000 in your savings account. You expect to earn 5 percent, compounded monthly, on your money during your retirement. Your plan is to...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Illinois >> Loyola Chicago >> FINC 450

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
06 ________ Chapter 1. You can afford car payments of \$265 a month for three years. The interest rate is 7.5 percent, compounded monthly. How much can you afford to borrow to buy a car? a. \$8,269.67 b. \$8,271.83 c. \$8,519.20 d. \$8,572.44 You want to retire on the day you have \$500,000 in your savings account. You expect to earn 5 percent, compounded monthly, on your money during your retirement. Your plan is to withdraw \$4,000 a month as retirement income from this account. How many months can you be retired until you run out of money? a. 100.83 b. 125.00 c. 176.94 d. 180.95 A preferred stock pays annual dividends of \$3.50. How much are you willing to pay today to buy one share of this stock if you want to earn a 13 percent rate of return? a. \$24.29 b. \$26.92 c. \$29.99 d. \$37.14 A project will produce cash flows of \$3,000, \$4,500, and \$5,000 a year for the next three years, respectively. What is the value of these cash flows today at a discount rate of 7.8 percent? a. \$10,646.57 b. \$10,986.09 c. \$11,122.44 d. \$11,477.01 Today you are opening a savings account and depositing an initial \$2,000 into it. You plan to deposit \$3,000 into the account one year from today and deposit another \$4,300 two years from How today. much will you have in your account five years from today if you earn a 7 percent rate of return? a. \$9,799.80 b. \$10,485.79 c. \$11,477.01 d. \$12,005.17 ________ 2. ________ 3. ________ 4. ________ 5. Chapter 06 Answers 1 1. c 1 /(1 APV \$265 .075 3 12 ) 12 .075 12 PV 8,519.20 44,284.47 ; APV = \$265 32.147913; APV = \$8,519.20 Enter Solve for Solve for 3 12 N 7.5/12 I/Y -265 PMT FV 1 2. c 1 /(1 .05 12 \$500,000 \$4,000 .05 t ) 12 ; t ln1.0041667 = ln2.086957; t = 176.94 months Enter Solve for 3. b N 176.94 5/12 -500,000 4,000 I/Y PV PMT FV PV \$3.50 ; PV = \$26.92 .13 \$3,000 1 N 4. a NPV Enter Solve for Enter Solve for Enter Solve for 1 1 1 .078 7.8 I/Y \$4,500 1 (1 .078) 2 3,000 FV \$5,000 1 ; NPV = \$10,646.57 (1 .078)3 PV -2,782.93 PMT 2 N 7.8 I/Y PV -3,872.35 PMT 4,500 FV 3 N 7.8 I/Y PV -3,991.29 PMT 5,000 FV NPV = \$2,782.93 + \$3,872.35 + \$3,991.29 = \$10,646.57 5. d FV Enter \$2,000 (1 .07) 5 5 N 7 I/Y \$3,000 (1 .07) 4 -2,000 PV PMT FV 2,805.10 \$4,300 (1 .07)3 ; FV = \$12,005.17 Solve for Enter Solve for Enter Solve for 3 N 7 I/Y -4,300 PV 4 N 7 I/Y -3,000 PV PMT FV 3,932.39 PMT FV 5,267.68 FV = \$2,805.10 + \$3,932.39 + \$5,267.68 = \$12,005.17
Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Loyola Chicago - FINC - 450
7_ 1.A semiannual corporate bond has a face value of \$1,000, a yield to maturity of 7.2 percent, and a coupon rate of 7.5 percent. The bond matures 10 years from today. This bond: a. pays interest payments of \$75.00 every six months. b. sells at
Loyola Chicago - FINC - 450
8_ 1.You would like to earn a 9.5 percent rate of return on a 9 percent preferred stock. How much are you willing to pay for 10 shares? a. \$94.74 b. \$105.56 c. \$947.37 d. \$1,055.56 The common stock of Andy's Sporting Goods sells for \$25.40 a shar
Loyola Chicago - FINC - 450
9 Use the following information to answer questions 1 through 3. You are analyzing a proposed project and have compiled the following information: Year Cash flow 0 -\$145,000 1 \$ 33,400 2 \$ 70,500 3 \$ 82,100 Required payback period 3 years Required re
Loyola Chicago - FINC - 450
10 Round all answers to whole dollars._ 1.A proposed project is expected to decrease accounts receivable by \$10,000, decrease inventory by \$4,000, and increase accounts payable by \$6,000. What is the amount of the initial cash flow for this proje
Loyola Chicago - FINC - 450
12_ 1.One year ago, you purchased a stock at a price of \$36.24 a share. You received an annual dividend of \$1.80 a share and sold the stock today for \$32.12 a share. What was your capital gains rate of return? a. -11.28 percent b. -11.37 percent
Loyola Chicago - FINC - 450
19 _ 1. Which one of the following is a use of cash? a. a decrease in inventory b. an increase in accounts payable c. increase in fixed assets d. increase in long-term debt A firm has an accounts payable period of 46 days, an inventory period of 56 d
Ole Miss - ACCY - 201
CHAPTER 1 INTRODUCTION TO ACCOUNTING AND BUSINESSCLASS DISCUSSION QUESTIONS1. The objective of most businesses is to maximize profits. Profit is the difference between the amounts received from customers for goods or services provided and the amou
Ole Miss - ACCY - 201
CHAPTER 2 ANALYZING TRANSACTIONSCLASS DISCUSSION QUESTIONS1. An account is a form designed to record changes in a particular asset, liability, stockholders' equity, revenue, or expense. A ledger is a group of related accounts. 2. The terms debit a
Ole Miss - ACCY - 201
CHAPTER 3 THE MATCHING CONCEPT AND THE ADJUSTING PROCESSCLASS DISCUSSION QUESTIONS1. a. Under cash-basis accounting, revenues are reported in the period in which cash is received and expenses are reported in the period in which cash is paid. b. Und
Ole Miss - ACCY - 201
CHAPTER 4 COMPLETING THE ACCOUNTING CYCLECLASS DISCUSSION QUESTIONS1. a. The financial statements are the most important output of the accounting cycle. b. Yes, all companies have an accounting cycle that begins with analyzing and journalizing tran
Ole Miss - ACCY - 201
CHAPTER 5 ACCOUNTING FOR MERCHANDISING BUSINESSESCLASS DISCUSSION QUESTIONS1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of merchandise, instead of a service, that makes the activities of a merchandising
Ole Miss - ACCY - 201
CHAPTER 6 ACCOUNTING SYSTEMS, INTERNAL CONTROLS AND CASHCLASS DISCUSSION QUESTIONS1. The knowledge that job rotation is practiced and that one employee may perform another's job at a later date tends to discourage deviations from prescribed procedu
Ole Miss - ACCY - 201
CHAPTER 7 RECEIVABLESCLASS DISCUSSION QUESTIONS1. Receivables are normally classified as (1) accounts receivable, (2) notes receivable, or (3) other receivables. 2. Transactions in which merchandise is sold or services are provided on credit genera
Ole Miss - ACCY - 201
CHAPTER 8 INVENTORIESCLASS DISCUSSION QUESTIONS1. To protect inventory from customer theft, retailers use two-way mirrors, cameras, security guards, locked display cabinets, and inventory tags that set off an alarm if the inventory is removed from
Ole Miss - ACCY - 201
CHAPTER 9 FIXED ASSETS AND INTANGIBLE ASSETSCLASS DISCUSSION QUESTIONS1. a. Tangible b. Capable of repeated use in the operations of the business e. Long-lived 2. a. Property, plant, and equipment b. Current assets (merchandise inventory) 3. Real e
Ole Miss - ACCY - 201
CHAPTER 10 CURRENT LIABILITIESCLASS DISCUSSION QUESTIONS1. To match revenues and expenses properly, the liability to cover product warranties should be recorded in the period during which the sale of the product is made. 2. When the defective produ
Purdue - PHYS - 241, 152
Chapter 23 Solutions 10.0 grams electrons 24 23 atoms 47.0 = 2.62 10 N= 6.02 10 atom mol 107.87 grams mol # electrons added = Q 1.00 10 -3 C = = 6.25 1015 e 1.60 10 -19 C electron23.1(a)(b)or2.38 electrons for every 10 9 al
Indiana - HIST - 101
CO2 in coke verse diet cokeProblemHow much carbon dioxide is in diet coke verse regular coke?HypothesisMy hypothesis is that diet coke has more carbon dioxide in it than regular coke does.Procedures1. First weigh each can with coke in it (rec
Indiana - HIST - 101
Of Mice and Men essay Loneliness is a condition of human life as well as in John Steinbeck's Of Mice and Men, which shows this concept, well. The book has an array of people, including Candy, Curley's wife, Lennie and Crooks, all of whom are lonely b
Indiana - HIST - 101
ciencethicsrticle EssayIs it ethical to give someone a test drug knowing that they might not even receive a helpful drug at all, even when their in need of medicine? This article gives pros and cons wither or not this is right. People who are m
New School - PHY - 101
IIT-JEE2006-PH-1FIITJEE Solutions to IITJEE2006PhysicsTime: 2 hours Note: The marking Scheme is (+3, -1) for question numbers 1 to 12 , (+5, -1) for question numbers 13 to 20, (+5, -2) for question numbers 21 to 32 and (+6, 0) for question numbe
Virginia Tech - BIT - 2406
BIT 2406 Quiz 1 Multiple Choices: Please choose the most correct response to each of the following questions. Please carry all computations out to four (4) decimal places. 1. A Regression analysis is a modeling technique for analyzing the relationshi
Virginia Tech - BIT - 2406
BIT 2406 Test 1 1. All of the following are assumptions of the error terms in the simple linear regression model except Error terms indicate a positive autocorrelation. 2. The following results were obtained as a part of simple regression analysis: r
Virginia Tech - BIT - 2406
BIT 2406 HW Answers Assignment 1 1. Chapter 11, Problem 11.21 a. b0 = 7.81409 b1 = 2.66522 Yes. The interpretation of b0 does make practical sense since it indicates that 781,409 bottles of detergent would be demanded when the price difference with o
Virginia Tech - BIT - 2406
BIT 2406 HW Answers Assignment #2 1. Problem 11.57 a. 1025339.667; 746.7623752; 1024592.904; r2 = .999; r = .999; 99.9% of the variation in the observations has been explained by the regression model. b. T = 117.134, p-value = .000; Reject H0. 2. Pro
Virginia Tech - BIT - 2406
BIT 2406 Quiz 2 Multiple Choices: Please choose the most correct response to each of the following questions. Please carry all computations out to four (4) decimal places. 1. An investigator hired by a client suing for sex discrimination has develope
Campbell - PHYS - 221
CHAPTER 13Problem Solutions13.1 (a) The force exerted on the block by the spring isFs kx 160 N m 0.15 m 24 N ,or Fs24 N directed toward equilibrium position(b) From Newton's second law, the acceleration isa Fs m 24 N 0.40 kg 60 m s260 m to
Campbell - PHYS - 221
Physics 221Test #5 SampleMultiple Choice: Answer each of the following by filling in the appropriate circle on the accompanying opscan sheet. Be sure to read each question carefully and use the blue side of the answer sheet. 1. A humming bird's w
Campbell - PHYS - 221
CHAPTER 44.1 (a) (b) aF ma 6.0 kg 2.0 m s 212 N .F m12 N 4.0 kg3.0 m s 2 .4.3w2 tons2000 lbs 1 ton4.448 N 1 lb2 10 4 N .4.6aF mvi7.5 105 N 1.5 107 kgat gives5.0 102m s 2 , andvtv vi a80 km h 0 0.278 m s 5
Campbell - PHYS - 221
PHYSICS 221 First Summer Session 2008 Home Work Assignments from College Physics 7th Ed., R. Serway and J. Faughn Please feel free to work as many problems as you like, but the following are really essential to prepare you for the test questions. Cha
Campbell - PHYS - 221
PHYSICS 221 SYLUBUS Summer Session I 2008 General College Physics Instructor: Jason Ezell, Room 312 Science Building, Ext: 1737 Email: ezell@campbell.edu Office Hours: M-F 1:00-2:00 (Other times by Appointment) Text: College Physics, by R. Serway and
Campbell - PHYS - 221
Physics 221Test #2Summer Session IPart 1 Multiple Choice: Circle the correct answer. 1) Newton's first law of motion, that objects tend to keep doing what they are already doing, is also known as A) the Law of Falling Bodies B) the Law of Inert
Campbell - PHYS - 221
CHAPTER 6Problem Solutions6.2 Assume the initial direction of the ball in the x direction, away from the net.(a)Impulsep m vfvi0.0600 kg 40.0 m s50.0 m sgivingImpulse 5.40 kg m s(b) Work5.40 N s toward the net.v i2KE1 m v2 f
Campbell - PHYS - 221
Physics 221 SampleTest #4Multiple Choice: Answer each of the following by filling in the appropriate circle on the accompanying opscan sheet. Be sure to read each question carefully and use the blue side of the answer sheet. 1) You think North Ca
Campbell - PHYS - 221
Physics 221 Sample Test #3 Multiple Choice: Answer each of the following by filling in the correct letter on the accompanying opscan sheet with a #2 pencil. Be sure to use the blue side and read each question carefully. 1. Which of these is the prope
Maryland - ECON - 200
1Ten Principles of EconomicsPRINCIPLES OFMICROECONOMICSFOURTH EDITIONN. G R E G O R Y M A N K I WPowerPoint Slides by Ron Cronovich 2007 Thomson South-Western, all rights reservedWhat Economics Is All About Scarcity refers to the limite
Maryland - ECON - 200
2Thinking Like An EconomistPRINCIPLES OFMICROECONOMICSFOURTH EDITIONN. G R E G O R Y M A N K I WPowerPoint Slides by Ron Cronovich 2007 Thomson South-Western, all rights reservedIn this chapter, look for the answers to these questions:
Maryland - ECON - 200
4The Market Forces of Supply and DemandPRINCIPLES OFMICROECONOMICSFOURTH EDITIONN. G R E G O R Y M A N K I WPowerPoint Slides by Ron Cronovich 2007 Thomson South-Western, all rights reservedIn this chapter, look for the answers to these q
Maryland - ECON - 200
5Elasticity and its ApplicationPRINCIPLES OFMICROECONOMICSFOURTH EDITIONN. G R E G O R Y M A N K I WPowerPoint Slides by Ron Cronovich 2007 Thomson South-Western, all rights reservedWhy is Elasticity Important? To measure the magnitude o
Glasgow Caledonian University - MBA - BUS511
Tango Inc. T-Accounts For the Month January 2009dr+ Beg. Bal a. b. d. h. End. Bal dr+ Beg. Bal c End. Bal dr+ Beg. Bal e. End. Bal\$ \$ \$ \$ \$ \$Cash (A) 9,500 3000 10,000 500 7,500 12,000 35,500crc. i.dri.Accounts Payable (L) \$ \$ 500 \$ 1,000
Maryland - ECON - 200
6Supply, Demand, and Government PoliciesPRINCIPLES OFMICROECONOMICSFOURTH EDITIONN. G R E G O R Y M A N K I WPowerPoint Slides by Ron Cronovich 2007 Thomson South-Western, all rights reservedGovernment Intervention in Markets: Motivation
Glasgow Caledonian University - MBA - BUS511
M3-16Buck Up!, Inc.Income Statement Year Ended December 31, 2008 Revenues: Horse-breaking revenue Rodeo lesson revenue Total revenues Expenses: Wages expense Depreciation expense Maintenance expense Other expenses Total expenses Net income\$25,20
Glasgow Caledonian University - MBA - BUS511
PA2-1 Req. 1 Assets = Liabilities Notes Payable = = +200,000 +30,000 3,000 5,000 No effect +12,000 +37,000 +200,000 +10,000 = = = = = = +149,000 +100,000 +27,000 3,000 +5,000 +120,000 + Stockholders' Equity Contributed Retained Capital Earnings +100,
Glasgow Caledonian University - MBA - BUS511
PA1-1 Req. 1 HIGH POWER CORPORATION Income Statement For the Year Ended December 31, 2008 Sales revenue Expenses Operating expenses Other expenses Total expenses Net income Req.2 HIGH POWER CORPORATION Statement of Retained Earnings For the Year Ende
Glasgow Caledonian University - MBA - BUS511
ba54167f2a10724bfb0312332d403e4b1628c18d.xls Time Definite Delivery T-Accounts For The Period Since Jan 1, 2009dr+ Beg. Bal a. b. e. f. End. Bal dr+ Beg. Bal c End. Bal dr+ Beg. Bal b. End. Bal dr+ Beg. Bal g. End. Bal\$ \$ \$ \$ \$ \$Cash (A) 80,000
Oklahoma State - ENSC - 2123
Drexel - MEM - 255
O N EIntroductionANSWERS TO REVIEW QUESTIONS1. Guided missiles, automatic gain control in radio receivers, satellite tracking antenna 2. Yes - power gain, remote control, parameter conversion; No - Expense, complexity 3. Motor, low pass filter, i
Drexel - MEM - 255
T W OModeling in the Frequency DomainSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Transfer FunctionsFinding each transfer function: Vi(s) 10 = ; i(s) Vp(s) Pre-Amp: V (s) = K; i Ea(s) 150 Power Amp: V (s) = s+150 p Pot: 50 Motor: Jm = 0
Drexel - MEM - 255
T H R E EModeling in the Time DomainSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: State-Space Representation. Ea(s) 150 For the power amplifier, V (s) = s+150 . Taking the inverse Laplace transform, ea +150ea = p 150vp. Thus, the state eq
Drexel - MEM - 255
F O U RTime ResponseSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Open-Loop ResponseThe forward transfer function for angular velocity is, 0(s) 24 G(s) = V (s) = (s+150)(s+1.32) P a. 0(t) = A + Be-150t + Ce-1.32t 24 b. G(s) = 2 . Therefor
Drexel - MEM - 255
F I V EReduction of Multiple SubsystemsSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Designing a Closed-Loop Responsea. Drawing the block diagram of the system:PotsPre ampPower ampMotor, load and gearsui +10 K150 s+150-
Drexel - MEM - 255
S E V E NSteady-State ErrorsSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Steady-State Error Design via Gain76.39K a. G(s) = s(s+150)(s+1.32) . System is Type 1. Step input: e() = 0; Ramp input: 1 2.59 = 76.39K = K ; Parabolic input: e()
Drexel - MEM - 255
E I G H TRoot Locus TechniquesSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Transient Design via Gaina. From the Chapter 5 Case Study Challenge: 76.39K G(s) = s(s+150)(s+1.32) 1 Since Ts = 8 seconds, we search along - 2 , the real part of
Drexel - MEM - 255
N I N EDesign via Root LocusSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Lag-Lead Compensation76.39K a. Uncompensated: From the Chapter 8 Case Study Challenge, G(s) = s(s+150)(s+1.32) = 7194.23 -1 6.9 s(s+150)(s+1.32) with the dominant p
Drexel - MEM - 255
T E NFrequency Response TechniquesSOLUTION TO CASE STUDY CHALLENGEAntenna Control: Stability Design and Transient PerformanceFirst find the forward transfer function, G(s). Pot: K1 = Preamp: K Power amp: 100 G1(s) = s(s+100) Motor and load: Kt 1
Drexel - MEM - 255
E L E V E NDesign via Frequency ResponseSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Gain Designa. The required phase margin for 25% overshoot ( = 0.404), found from Eq. (10.73), is 43.49o. 50.88K From the solution to the Case Study Chal
Drexel - MEM - 255
T W E L V EDesign via State SpaceSOLUTION TO CASE STUDY CHALLENGEAntenna Control: Design of Controller and Observera. We first draw the signal-flow diagram of the plant using the physical variables of the system as state variables.Writing the
Drexel - MEM - 255
T H I R T E E NDigital Control SystemsSOLUTIONS TO CASE STUDIES CHALLENGESAntenna Control: Transient Design via Gaina. From the answer to the antenna control challenge in Chapter 5, the equivalent forward transfer function found by neglecting th
UCSD - BILD - BILD 3