Instructor: Dr. Ellison
Please answer all of the following proble
solutions to the similar end of chapter pr
problems under the reading quiz tab (f
An investment will require a $2.4 millio
by taking the same risk. Will this investm
The annual economic pro
Chapter 197
#1, 2, 3, 6, 10
1. At todays spot exchange rates 1 U.S. dollar can be exchanged for 9 Mexican pesos or for 111.23
Japanese yen. You have pesos that you would like to exchange for yen. What is the cross rate
between the yen and the peso; that i
CHAPTER REVIEW
Manuel borrows $800 for 6 months at 18% simple interest. How much does he owe at the end
of 6 months?
The population of California is 32 million and expects to grow at a rate of 2.3% per year for
the next 10 years. What will the population
Calculating Internal Rate of Return This measurement determines the interest rate that makes the
present value of an investments projected cash flow equal to the cost of the project; practically
speaking, the rate that indicates whether an investment is w
Calculating Debt-to-Capital Ratio This measurement is important as it measures the percentage of
total funding represented by debt. If you compare a companys long-term liabilities to its total
capital, the debt-to-capital ratio provides review of extent t
CLASSIFICATIONOFFINANCE
PROBLEMS
LetthelettersAsize12cfw_Acfw_,Bsize12cfw_Bcfw_,Csize12cfw_Ccfw_,Dsize12cfw_Dcfw_,Esize12cfw_E
cfw_andFsize12cfw_Fcfw_berepresentedasfollows:
A=FVof a lump-sumsize12cfw_A=ital"FV"ofalumpsum"cfw_
B=PVof a lump-sumsize12cfw_B
List of References
At the end of your essay, place a list of the references you have cited in the text. Arrange this in
alphabetical order of authors' surnames, and then chronologically (earliest publication date first)
for each author where more than one
Legislation and legal authorities
For more comprehensive information and other juridictions, see the Bluebook The bluebook: A uniform system of citation (19th ed.). (2010).
Cambridge, MA: Harvard Law Review Association.
Citations should be made to the pri
Inventory Turnover Ratio This ratio tells how often your business inventory turns over during the
course of the year. Because inventories are the least liquid form of asset, a high inventory turnover
ratio is generally positive. On the other hand, an unus
SIMPLE INTEREST AND DISCOUNT
Do the following simple interest problems.
If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is
the interest?
You borrow $4,500 for six months at a simple interest rate of 8%. How much i
Acid Test or Quick Ratio This is a tougher measure of liquidity than the current ratio because it
excludes inventories when counting assets. It calculates the companys liquid assets in relation to its
liabilities. The higher the ratio, the higher the busi
Unpublished works
Type
Examples
Personal
communication
Personal communication may be unpublished lecture notes, letters, memos,
personal interviews, telephone conversations, email or messages from nonarchived discussion groups or bulletin boards, photogra
Books (print and online)
General forms (when DOIs are assigned, use them):
Author, A. A. (year). Title of work. doi:xx.xxxxxxxxxxxxxxxx
Author, A. A. (year). Title of work. Location: Publisher.
Author, A. A. (year). Title of work. Retrieved from http:/www
16. In finance, a _bond is a type of bond that can be converted into shares of stock in
the issuing company, usually at some pre-announced ratio. It is a hybrid security with debtand equity-like features. A convertible bond typically has a _yield to matur
11. Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a
par value of $1,000 and a price of $865. The bonds will mature in 11 years. What is the yield
to maturity on the bonds?
A)
B)
C)
D)
10.09%
11.13%
9.25%
9.89%
12. A
Answer Key - Quiz2
1.
2.
3.
4.
5.
6.
7.
8.
B
D
D
D
A
A
C
B
Exp Div = Exp EPS x (1-plow-back ratio) = 5 x (1-0.6) = 2
Growth rate = (plow-back ratio) x (ROE) = 0.6 x 0.12 = 0.072
Using the dividend growth model: P = ExpDiv/(r-g) = 2/(0.1-0.072) = $14.29
9.
FINA 202
I NTRODUCTION TO
I NVESTMENTS
TRIMESTER 2
Test 1
Time allowed: 50 Minutes
CLOSED BOOK
Instructions: You should answer all questions.
There are three questions. Question 1 is worth 30 marks. Question 2 is worth 50
marks. Question 3 is worth 20 ma
Week 2 Review Questions
The Simple Linear Regression Model
Which of the following is a linear regression equation?
EXAMPLE
A marketing analyst wants to investigate the relationship between sales ($,000) and
advertising expenditures ($,00) over 85 months.
Financial Modeling
Joanna Pousset, Ph.D.
[email protected]
Introduction
2015
Course objectives
Improve your Excel skills
for finance application
through practical examples
The objective is not to be exhaustive,
but to help you to manipulate a too
1. The discount rate that makes the present value of a bonds payments equal to its price is
termed the:
A) capital gain yield.
B) yield to maturity.
C) current yield.
D) coupon rate.
2. The coupon rate of a bond equals:
A) its yield to maturity.
B) coupon
1. The discount rate that makes the present value of a bonds payments equal to its price is
termed the:
A) capital gain yield.
B) yield to maturity.
C) current yield.
D) coupon rate.
2. The coupon rate of a bond equals:
A) its yield to maturity.
B) coupon