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Unformatted text preview: Name __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Summer, 2007 Exam 1 A To receive full credit, show all work—equations in variable form, equations with numbers plugged in—and clearly indicate your answer. (Point values are in parentheses after each question) 1. Write an algebraic equation for calculating Earnings Per Share, beginning with Revenues. (10) EPS = 2. Four months ago I purchased 400 shares of stock for $25 per share, and the stock is now worth $22 per share. Last month, I received a dividend check totaling $400. What is my holding period return? (8) 3. What is the annualized premium or discount for the three month forward quote for the Brazilian Real? (10) Circle the correct term. The Real is trading at a forward: premium discount Foreign Exchange Rates (US Dollars) Country Currency Spot Rate 3-Month Forward Brazilian Real 0.171538 0.16894 4. Given the following information for Ladren Corporation, determine Ladren’s taxable income. (15) Sales $7 million Operating expenses 2 million Interest income 1 million Interest expense 3 million Dividend income 0.5 million Dividends paid 4 million 5. Landis Company had taxable income of $9,000,000. (18)5....
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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.
- Spring '08