Midw2005_soln

Midw2005_soln - ANSWERS to Mid-Term for Finance 1 Winter...

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Multiple Choice: 2 marks each Version A 1.A 2.B 3.B 4.C 5.D 6.D 7.B 8.A 9.C 10.B Version B 1.D 2.D 3.C 4.B 5.B 6.A 7.A 8.B 9.B 10.C Multiple Choice: 8 marks each - calculations must be shown Question 11 - answer A: $1.15+ $1.32+$1.28+$45.33; FIND PV OF EACH = $35.25 Question 12 - answer C 100,000 BONDS NEEDED AT PAR. YTM OF $1196.36 = 8% THUS COUPON = 8% Question 13 - answer D EPS 0 = $6.50; EPS 1 = $6.825 THUS DPR = 60% AND RR = 40% Question 14 - answer C (17.24 - 17.60 + 10.79) X 8% = 83.478 OR CLOSE TO $800,000 Question 15 - answer E Question 16 - answer C -$100(PVA 6%, 3) + [$200(PV 8%, 1) + $300(PVA 8%, 4)(PV 8%,1)] (PV 6%,3) = $660.67 Question 17 - answer A $5,954 IN TAXES PAYABLE UCC: Beginning of 2003 $132,000 (117,000 + 15,000) 1/2 purchase 66,000 Balance 66,000 CCA (@15%) (9,900) Other 1/2 66,000 UCC beginning 2004 122,100 Sale (lesser of) (88,000) (132,000 / 3 = 44,000; x 2 = 88,000) Balance 34,100 CCA @ 15% 5,115 Tax Effects:
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This note was uploaded on 04/17/2008 for the course MGCR 341 taught by Professor Trainor during the Spring '08 term at McGill.

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Midw2005_soln - ANSWERS to Mid-Term for Finance 1 Winter...

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