Assignment Chapter 4: Bond Valuation
MBA Course: Financial Management
1. Bond Prices. Staind, Inc., has 7.5 percent coupon bonds on the market that have 10 years left
to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent,

Assignment Chapter 5: Stock Market Valuation
MBA Course: Financial Management
1. The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock.
The dividends are expected to grow at constant rate of 6% per year indefinitely. If

Assignment
Chapter 8: Risk Analysis of Capital Budgeting
MBA Course: Financial Management
Problem 1: The XYZ Company wants to invest in one of two mutually exclusive projects.
They have the following cash inflows for each of the next 3 years:
Probability

Assignment Chapter 6: Return and Risk Analysis
MBA Course: Financial Management
Expected Return, Variance, and Covariance
6.1 Ms. Sharp thinks that the distribution of rates of return on Q-mart stock is as follows.
a. What is the expected return for the s

Assignment
Chapter 9: Cost of Capital
MBA Course: Financial Management
1. Calculate the after-tax cost of debt under each of the following cases:
(a) the interest rate is 10 percent, and the tax rate is 40 percent;
(b) the interest rate is 11 percent, and

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CHAPTER 2
FINANCIAL STATEMENTS,
TAXES, AND CASH FLOW
CRITICAL THINKlNG AND CONCEPTS REVIEW
2.1 Liquidity. What does liquidity measure? Explain the trade-off a rm faces between
high-liquidity and low-liquidity levels.

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CHAPTER 4
INTRODUCTION TO VALUATION:
THE TIME VALUE OF MONEY
CRITICAL THINKING AND CONCEPTS REVIEW
4.1 Compounding. What is compounding? What is discounting?
Answer:
Compounding refers to the process o

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CHAPTER 1
INTRODUCTION T 0 FINANCIAL
MANAGEMENT
CRITICAL THINKING AND CONCEPTS REVIEW
1.1 The Financial Management Decision Process. What are the three types of nancial
management decision? For each type of decisio