FI360 Unit 2 Homework
Chapter 3: Problem 3-1, 3-2, 3-4, 3-5, 3-10
P3-1: You have $1,500 to invest today at 7% interest compounded annually.
a.) How much will you have accumulated in the account at the end of the following number
of years?
1. Three years
F
FI360 Unit 2 Homework
Chapter 3: Problem 3-1, 3-2, 3-4, 3-5, 3-10
P3-1: You have $1,500 to invest today at 7% interest compounded annually.
a.) How much will you have accumulated in the account at the end of the following number
of years?
1. Three years
F
MARIAMA JAMMEH
MBA 640 WEEK 1 HOMEWORK
CHAPTER 3 PROBLEM #17
Consider the following limit-order book of a specialist. The last trade in the stock occurred at a price of $50.
Limit Buy Orders
Limit Sell Orders
Price
Shares
Price
Shares
$49.75
500
$50.25
10
MARIAMA JAMMEH
CHAPTER 5 WEEK 3 HOMEWORK QUESTION 1 and 7
To finish the above table we first put in the Treasury benchmarks as given in the
problem. For 05/01/2037, it is 4.518%; for 12/15/2017, it is 4.096%; and, for
11/01/2012, it is 3.507%.
We can now
Richmond Enterprises is considering whether to pursue a restricted or relaxed current asset investment policy. The firms an
sales are $400,000; its fixed assets are $100,000; debt and equity are each 50 percent of total assets. EBIT is $36,000, the in
rat
CHAPTER 7 PROBLEM #8
A) What is the difference between refunding protection and call protection?
Unlike call protection, refunding protection prevents redemption only from certain
sources, namely the proceeds of other debt issues sold at a lower cost of m
MARIAMA JAMMEH
CHAPTER 3 QUESTION #12
SOLUTION
(a)
To determine the future value of any sum of money invested today, we use the below
equation: Pn= P0 (1 + r)nwhere n = number of periods, Pn= future value n periods from now,
P0= original principal, and r
1. What are the three forces which simultaneously affect stock prices as described by the Dow
Theory?
The three forces which simultaneously affect stock prices as described by the Dow Theory include:
1. Primary trend
2. Intermediate trend
3. Minor trend
2
Separation of Duties
Separation of duties involves splitting responsibility for bookkeeping, deposits, reporting and
auditing. The further duties are separated, the less chance any single employee has of committing
fraudulent acts. For small businesses wi
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 1, because when market return exceeded 11%, the stock
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 this it is still
considered a good investment.
C. 30 y
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 .35 = 175000
500000 175000 = 325000 after tax income
C
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 are for
this year. They might be different for future ye
Kesha Taylor
26 Jun 2016
Homework
Chapter 5
1. Identify the different costs of quality described in the case. Explain the trade-offs between the
costs of quality that Delta made in its decision. Was George Chadwick correct that conducting
more tests was u
Kesha Taylor
16 Sep 16
Homework
P8.1.
a. The payback period would be 25 years. The amount of $40 would be received for the next 25
years.
1,000/.04 = 40
1,000/40 = 25
b. The bond can be a bad investment is 4% is return, you are expecting. The NPV will hel
Kesha Taylor
Homework
10 July 2016
Chapter 7
Carlos Gonzales is production manager at an assembly plant that manufactures cordless
telephones. The company is planning to install a pull system. The process is being planned to
have a usage rate of 50 pieces
Kesha Taylor
17 Jul 2016
Homework
Chapter 9
1. Help Jeff decide whether he should give gre ater priority to a smaller facility with
possibility for expansion or move into a larger facility immediately. Decide on which is
the best alternative and choose we
Chapter 17: Problems 3 and 5
Problem 3
a. The NAV of the fund
NAV = (400 x $16 + 400 x $28)/1,000 = $17,600/1,000 = $17.60.
b. The expected NAV at the end of the year
Expected NAV = (400 x $20 + 400 x $20)/100 = $16,000/100 = $16.00
c. The maximum price t
FI360 Financial Management
Name: Bobby Walker
Week 7 Assignment
Bavarian Brew
Bavarian Brew, an unlevered firm, has an expected EBIT of $500,000. The required return on
assets for the firms assets is 10%. The company has 250,000 shares outstanding. The co
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 of $28.6 billion and a net quarterly profit of $7.3 bill
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 rate of return, which plan accumulates more money?
For
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) understanding how securities are
priced is helpful when condu