Homework #1 - Solution
The solution is provided at the bottom.
Rao Construction recently reported $20.50 million of sales, $12.60 million of operating
costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of
A stock is expected to pay a dividend of $0.75 at the end of the year.
The required rate of return is rs = 10.5%, and the expected constant growth
rate is g = 6.4%. What is the stock's current price?
Refer to the solution at the bottom of this document.
FNCE 61.301 Midterm exam 1
(Total points: 100)
Select one correct answer for each question. Each correct answer is worth 5 points.
Please use at least 4 decimal places in financial calc
Homework 3 solution at the bottom
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to
be constant at 3.20% per year. What is the real risk-free rate of return, r*?
Suppose the real risk-free rate
Solution to homework 2
FV of a single payment
1. Bradley Snapp has deposited $7,000 in a guaranteed investment account with a promised rate of 6%
compounded annually. He plans to leave it there for 4 full years when he will make a down payment on
a car af
The detailed solution is at the bottom.
1. Which of the following bonds would have the greatest percentage increase
in value if all interest rates in the economy fall by 1%?
a. 10-year, zero coupon bond.
b. 20-year, 10% coupon bond.
c. 20-year, 5% coupon
Anderson Systems is considering a project that has the following cash
flow and WACC data. What is the project's NPV? Note that if a
project's projected NPV is negative, it should be rejected.
O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is
the firm's cost of equity from retained earnings based on the CAPM?
Assume that you are a consultant to Broske In
Which of the following statements is CORRECT?
a. A stock's beta is less relevant as a measure of risk to an investor
with a well-diversified portfolio than to an investor who holds only
that one stock.
b. If an investor buys enough stocks, he or she ca
Sporting Goods 2003-2004
1. The holidays or seasonal periods that cause spikes in the data areWeek 46-47 which is in 2003, December, shows a spike in sales due to the Christmas
holidays during which people tend to buy more goods.
Week 73-75 which is in 20
Question1- Lembcke presents Jane Fonda/Hanoi Jane as the latest in long line of female betrayal
figures throughout history. Please discuss.
Jane Fonda was a star before she was political, but after meeting several Vietnam vete
April 10, 2011
Prof. D.A. Cecere
The documentary White light/ Black Rain: The Destruction of Hiroshima and Nagasaki
by Steven Okazaki, tells us about the nuclear bombings on Japan. Steven Okazaki's film is
poised and potent, filled with pain
Talk about background and facts of war: how it started how it ended
Thesis: there are different perspectives in this war that was fought covertly instead of
overtly. Counter intelligence aspect = many different opinions
America and B
February 9th 2011
Race is a human invention. It is not biologically constructed. People are bundled into
three or four fundamentally different groups according to their physical traits. These distinct
groups are red, white, black and yellow
May 2, 2011
Prof. D Cecere
Race: The Power of an Illusion III
People believe that race is not biologically constructed but, that doesnt mean that race is
not present and people are not discriminated against race. The post-World War II Americ
May 5, 2011
Prof. D. A. Cecere
Eyes on the Prize
Since the Civil War, much of the concern over civil rights in the United States has
focused on efforts to extend these rights fully to African Americans. The first legislative attempts
Excel 2003 notes for data and charts
1. Sheet 1: print->options->all frames individually and layout portrait
Chart 1: print->options->all frames individually->layout landscape
2. Using the equation editor in MS Word to add equations: from MS Word,
Prof. Oliver Ford
February 9th 2011
In the essay What Everyone Ought to Know, but Doesnt written by Buck Hartzell is a
very informative essay which tells us about how should we use our and how should we invest it.
Buck Hartzell lists his res
College Writing II
Prof. Oliver Ford
The Stanford Prison Experiment:
An overview of the Stanford Prison Experiment
Psychologists had done a series of studies, by the 1970s, establishing the social power
of groups. They showed,