exam1b.ch1ch2ch2Ach5ch5A - Name Peoplesoft ID University of...

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Name __________________________________ Peoplesoft ID __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Spring, 2010 Exam 1B Point values are in parentheses. To receive full credit: Clearly indicate your answer Financial functions may be used only for finding annuity factors All inputs to find annuity factor must be shown Carry all decimals, rounding only final answer Decimal places should be rounded to four places (two in percent form) Currency answers rounded to the nearest cent, where applicable Include applicable units on answers 1. Write the algebraic equation , which was discussed in class, for calculating Net Income, or Earnings after Taxes, beginning with Revenues. (6) NI = 2. Three months ago I bought 1200 shares of a stock for $50 per share. Last month I received a dividend check for $600, and the stock is now selling for $40 per share. What is my holding period return on this investment? (6) 3. Jacob is saving for a vacation and wants to have $20,000 available in 5 years. How much must he save each year if his savings account earns 8 per cent per year? (6) 4. A ___________ option is a financial security that gives that holder of the option the right to buy a specified asset at a specified strike price on or before a specified expiration date. (2) 5. How much must I deposit in my account which earns an interest rate of 7 percent if I want to have $6000 in my account 8 years from now? (4) 6. Google’s common stock grew from about $195 to $620 per share over the 5 year period from 2005 through 2010. What has been the compound annual rate of growth in Google’s stock over this period? (6)
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This note was uploaded on 02/13/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.

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exam1b.ch1ch2ch2Ach5ch5A - Name Peoplesoft ID University of...

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