Q3-3. You are considering two investment plans. Plan A requires you to save $100 per month
for 10 years. Plan B requires you to save $200 per month for 5 years. Assuming that both plans
earn the same
Anthony Lawston
Homework #2
3-1
A. Compound Interest. $1,500 @ 7%
a. 3 years = 1,500 x (1 + .07)^3 = $1,837.5645
b. 6 years = 1,500 x (1 + .07)^6 = $2,251.0955
c. 9 years = 1,500 x (1 + .07)^9 = $2,75
Chapter 4: Problems 4-1, 4-12
Chapter 5: Problems 5-1, 5-4, and 5-9
4-1
1. A best-selling author decides to cash in on her latest novel by selling the rights to the
books royalties for the next six y
Anthony Lawston
Homework #5
8-1, 8-4, 8-9
10-1, 10-3
8-1
Suppose that a thirty-year U.S. Treasury bond offers a 4% coupon rate, paid semiannually. The
market price of the bond is $1,000, equal to its
Chapter 4
Answers to Concept Review Questions
1. Managers need to understand how bonds and stocks are priced because (1) firms regularly
issue stocks and bonds to raise money for investment (2) unders
HW: Week 7
13-1:
a.) Indicate whether each bond was sold at a discount, at a premium, or at its par value.
A. $985- $1000= -15.00 Discount
B. $1025- $1000= $25 Premium
C. $1000- $1000= $0 Par Value
D.
Homework #6
11-1:
West Coast Manufacturing Company (WCMC) is executing an initial public offering with the following
characteristics. The company will sell 10 million shares at an offer price of $25 p
Unit 4 Homework
6-1:
a) TDR= income+ capital gain
(1000 shares) x (1.25+4)
= $5,250
b) TPR= TDR/ initial investment
(5250)/ (1,000 X 45)
= 11.67%
c) They dont depend on whether you sell or hold the st
Homework #5
8-1:
Suppose that a thirty-year U.S. Treasury bond offers a 4% coupon rate, paid semiannually. The market
price of the bond is $1,000 equal to tits par value.
a.) What is the payback perio
Quiz #1
1. One of the tasks for financial managers when identifying projects that increase firm value
is to identify those projects where
a. Benefits are at least equal to the project's costs.
b. Taki
P. 3-1
o
P. 3-2
o
You have $ 1,500 to invest today at 7% interest compounded annually.
How much will you have accumulated in the account at the end of the following
number of years?
Three years
o F
Chapter 1
o Problem 1-1
o Calculate the tax disadvantage to organizing a U.S business today as a corporation, as
compared to a partnership, under the following conditions. Assume that all earnings wi
Homework#1
Chap. 1 (1-1)
Chap. 2 (2-2, 2-4)
Chapter 1
1. Think of another company or product besides Apples iPad, and note that companys
connections between other functional areas and finance.
A. Sony
Chapter 6: Problems 6-1, 6-2
Chapter 7: Problems 7-1, 7-3
6-1
1. You purchase 1,000 shares of Spears Grinders, Inc. stock for $45 per share. A year later,
the stock pays a dividend of $1.25 per share
10
Price = 50/(1+.06)t + 1000/(1.06)10
t=1
Price = 368+558.40 = 926
In calculating the price of the bond we have to calculate the present value of all interest
payments to be received over the life of
Finance Intro to Corporate Finance Book
Apples iPopping Results
On July 19, 2011, Apple Inc. announced its financial results for the third quarter of
its 2011 fiscal year. The company posted revenue o
Chapter 6: Problems 6-1, 6-2
Chapter 7: Problems 7-1, 7-3
6-1
A. 49 45 = $4
B. (49-45)/45 = .088 or 8.88%
C. No. The answers do not depend on if you sell it or not after the year. That is what they a
20 Aug 2016
Rutter Unit 1 homework
Chapter 1: Problem 1-1
Chapter 2: Problems 2-2, 2-4
P1-1
a. $500,000 profit before tax
.35 tax rate
.35 personal tax rate
.15 capital gain tax
Partnership = 500000 x
Chapter 8: Problems 8-1, 8-4, 8-9
Chapter 10: Problems 10-1, 10-3
P8-1
A. 25 years
a. 1000 * .04 = 40
b. 1000/40 = 25
B. It may take 25 years to get the money back, but you do get it back. Because of
Chapter 11: Problems 11-1, 11-2
11-1
a. 32-25 = $7
b. 10 x 25 10 x 25 x .07 = 232.5
c. 250,000,000 x .07 = 17,500,000
11-2
Net return earned =[(35-32)/32]x100= 3/32*100 = 9.375%
beta may be less than
Q: 1-7
Are ethics critical to the financial managers goal of maximizing shareholder wealth?
How are the two related? Is establishing corporate ethics policies and requiring employee
compliance enough