Gary Smalleys Personality types
Discover Your Personality
INSTRUCTIONS: In each box, checkmark the words that best describe your
personality. There are 20 descriptors in each personality box. Double t
Miss class check out office (handout in there)
Chapter 1
Financial planning process
Subject areas: cash flow(budget)
Investment
Insurance
Risk MGT
Education
Estate
Tax
Major purchase / debit
Benefits
FIN 381 Personal Financial Planning
GRADED HOMEWORK #1
Answers/solutions in Italics
1.
Name, in order, the six steps of the financial planning process.
Establish the planner/client relationship; Gathe
1. when you borrowed the money, the interest rate reflected an expected inflation
rate. If the actual rate is less, that means that the money you are repaying will lose
value more slowly than planned
(Ch5Qn1) A bond has an 8% coupon rate, semiannual coupons, $1,000 par value, and four and a half years to
maturity.
a. Price the above bond using a 7.5% YTM.
N
I/Y
PV
PMT
FV
What is the price of a zer
1. A bond has a 5% coupon rate, semiannual coupons, $1,000 par value, and three years to maturity.
a. Draw a timeline for this bond (label the periods!).
b. Price the above bond using an 8% YTM.
N
I/Y
(Ch6Qn1)AEH, Inc. just paid a $2.00 dividend and is expected to pay a $2.10 dividend next year. What is AEHs
capital gains yield (growth rate, g)?
(Ch6Qn2)XYZ, Inc. stock currently sells for $24.50 an
(Ch4Qn1) Interest-only Loan Payment
A borrower purchases a $550,000 home with 15% down. Their interest-only loan has an interest rate of 5.50%
with monthly payments. What is the monthly payment?
(Ch4Q
1. Interest-only Loan Payment
A borrower purchases a $800,000 home with 25% down. Their interest-only loan has an interest rate of 4.50%
with monthly payments. What is the monthly payment?
2. Interest
1. AEH, Inc. just paid a $2.50 dividend and is expected to pay a $2.60 dividend next year. What is AEHs capital
gains yield (growth rate, g)?
2. XYZ, Inc. stock currently sells for $25.50 and is expec
Chapter 2 In Class Practice
1.
What is the Future Value Formula?
2.
What is the Present Value Formula?
3.
How many periods does an investment compound in a year for annual compounding?
4.
How many per
Income Statement
Angelia Bass Company
January 1, 2015 through Decembe
Revenue
Gross Sales
Net Sales
500000
500000
Cost of Goods Sold
Cost of Goods Sold
250000
Gross Profit (Loss)
250000
Operating Expe
Angelia Bass
Homework Chapter 5
7. What is the relationship among fixed costs, contribution margin, and the break-even point?
To determine the break-even point, fixed costs must be calculated and time
Angelia Bass
Homework Chapter 4
If a company had sales of $2,587,643 in 2008 and sales of $3,213,456 in 2013, by what
percentage did sales change during this time period?
(3213456-2587643) /2587643 =
Angelia Bass
Homework Chapter 3
Compare variable and fixed expenses. Variable expenses are expenses that we have some
control over, such as food and clothing. Fixed expenses are expenses that we have
Angelia Bass
Chapter 4 Homework Week 5
Given the profit loss (income statement) and balance sheet for Sams Sandwich Delivery (Table
4-8), answer the following:
a) current ratio
28253/10659 = 2.65
quic