exam+1+answer+sheet+with+solutions

exam+1+answer+sheet+with+solutions - 16 A C 12.86 16.01 2....

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MGT 3062 Exam 1 Answer Sheet Name ID: 96000 21000 V1 V2 Version 1 Version 2 Comments / Partial Credit (PC) 1 E D 21 15.00% 25.00% 2 D B 22 15.00% 16.38% 3 C B 23 13,690.00 18,990.00 4 C E 20,890.00 28,490.00 1 point PC for calculating new tax (instead of difference) 5 E E 24 12.12% 11.76% ROE = NI/Sales X Sales/Assets X Assets/Equity No PC 6 E B 25 11.49% 12.60% 7 B C 26 $39,731.48 $15,276.80 8 B C 27 1,396,035.99 993,447.63 9 D C 28 4.00% 5.00% perpetuity 10 C B 29 8.00% 7.73% growing perpetuity 11 A B 30 624,319.88 645,524.78 value = sum of future discounted cash flows 12 D D 31 $807.86 $781.89 must be correct to the penny - otherwise, the problem is not set up correctly - semi annual, not annual coupons 13 B D 32 5.87% 7.78% 0.0388797904 14 B D 33 10.26% 8.51% rearrange dividend discount model 15 A A 34 4.08% 5.36% 1. solve for growth (NINE growth periods)
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Unformatted text preview: 16 A C 12.86 16.01 2. use dividend discount model (rounding error may cause a penny difference 17 E E 35 21.80 15.46 solve for perpetuity and discount perpetuity and other cash flows 18 B B 36 1.46 2.08 19 D E 37 4500 3500 20 B D 38 10.08 13.13 39 112.17 125.60 40 $907.54 $885.07 41 12.25% 9.05% rule of 72, almost 42 8.87% 8.38% 1 point PC for correct growth rate 43 116.67 150.00 perpetuity 44 800,000.00 600,000.00 calculate the nest egg you need (a monthly growing perpetuity - use monthly rates) $54.51 $40.88 calculate what it takes to accumulate the nest egg - per month bonus 25% per week APR 1300.00% EFF 10947544.25%...
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This note was uploaded on 02/09/2012 for the course MGT 3078 taught by Professor Marchman during the Spring '12 term at Georgia Tech.

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