CHAPTER 3 TIME VALUE OF MONEY 1: ANALYZING SINGLE CASH FLOWS
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Questions
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LG2 2. How are the present value and future value related?
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The measure that relates present values to future values is the interest rate i. A present value can
be moved forwa
CH 4:
http:/www.zenwealth.com/businessfinanceonline/BV/BondPrice.html
http:/www.zenwealth.com/businessfinanceonline/BV/YTM.html
http:/faculty.washington.edu/cameliab/teaching/BBus490/bond_3calculators.html
Year is minus one then use calculator.
http:/www.
CH 10
1.
Award: 10 out of 10.00 points
Show correct answer
Huggins Co. has identified an investment project with the following cash flows.
Year
1
2
3
4
Cash Flow
$ 780
1,050
1,310
1,425
If the discount rate is 8 percent, what is the present value of these
CH 9
1.
Award: 10 out of 10.00 points
Show correct answer
SDJ, Inc., has net working capital of $3,900, current liabilities of $5,890, and inventory of $4,840.
What is the current ratio? (Do not round intermediate calculations. Round your answer to 2 deci
CH 8
1.
Award: 10 out of 10.00 points
Show correct answer
For each of the following, compute the future value: (Do not round intermediate calculations and
round your answers to 2 decimal places, e.g., 32.16.)
Present Value
$ 1,950
8,152
70,355
177,796
Yea
Stock Valuation Problem Set
Check figures are in italics after the problem.
1. Charlene Lewis is thinking about buying some shares of Education, Inc. at $50 per share. She
thinks the price of the stock will be $75 per share in three years (P3 is expected
Capital Structure Decisions
(Selected material from Chapter 16)
A firm's optimal capital structure is that mix (wD, wP, and wE) of debt, preferred stock and
common stock (equity), which maximizes the stock price and also minimizes the WACC. At any
point i
CH 6:
http:/www.calculator.net/payback-period-calculator.html
Third Answer Wrong
http:/www.calculator.net/payback-period-calculator.html
Third Answer Wrong
Third Answer wrong
http:/www.calculator.net/payback-period-calculator.html
http:/www.datadynamica.c
CH 2:
http:/www.investopedia.com/calculator/fvcal.aspx
http:/www.investopedia.com/calculator/pvcal.aspx
http:/www.mathsisfun.com/money/compound-interest-calculator.html
http:/www.mathsisfun.com/money/compound-interest-calculator.html
Use 100/200 for doubl
CH 7:
http:/www.calculatorweb.com/calculators/depcalc.shtml
965000.00 X .2449= 236328.50
Use each annual depreciate rate X Cost 965000.00, then subtract from total Ending book Value.
AnnualCashInflow=(SalesCostDepreciation)*(1TaxRate)+Depreciation=(214000
Review Sheet for FI 393
Exam I
I will provide a formula sheet for the exam.
Multiple Choice 10 multiple choice questions worth three points each (30% of exam)
Chapter 1
Goal of the firm
Advantages and disadvantages of three forms of business organizatio
Chapter 4 Practice Problems and Solutions
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LG2 5-3 Future Value of an Annuity What is the future value of a $900 annuity payment
over five years if interest rates are 8 percent?
5
8
0
-900
N
I/YR
PV
PMT
FV
5279.94
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LG2 5-4 Future Value of an Annuity W
Chapter 4
This chapter expands the basic concepts of Time Value of Money from Chapter 3 to
incorporate annuities, perpetuities, nonannual compounding, amortization, and multiple cash
flows.
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What is an Annuity?
Annuity is the finance term for payments
A
Chapter 3
Time Value of Money for Single Cash Flows.
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What is Time Value of Money?
Process of moving money through time to account for interest received or paid
Relationship between time, money, and interest rates
Basic concept that $1 today is worth m
CHAPTER 2
Analyzing Financial Statements
Why are ratios useful?
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Financial Statement Analysis allows managers, analysts, lenders, and investors to better
understand a firms performance. Ratios standardize the numbers on financial statements in
order to f
Chapter 1: Introducing Financial Management
What
is Finance?
Valuation (Stocks, bonds, and other investments)
Business decisions
Risk and Return
Financial Management focuses on valuing assets and or investments from the
perspective of a company rather tha
CHAPTER 2 ANALYZING FINANCIAL STATEMENTS
PRACTICE ONLY THIS IS NOT AN ASSIGNMENT
questions
LG3
5. A firm has a debt ratio of 20 percent. The industry average debt ratio is 65 percent. Is this a good or
poor sign about the management of the firms financial
1. If $25,000 is invested today at an interest rate of 10% per year, how
much will you have in 30 years for your retirement?
N
I/YR
PV
PMT
FV
How much interest did you earn? How much is simple interest and how
much is interest on interest?
2. If a corpora
CHAPTER 3 TIME VALUE OF MONEY 1: ANALYZING SINGLE CASH FLOWS
Questions
LG2
2. How are the present value and future value related?
The measure that relates present values to future values is the interest rate i. A present value can
be moved forward in time
CH1
3220+4470= 7690
7690/4470= Current Ratio 1.72 7690-4400= 3290/4470= Quick Ratio 0.74
2.
Sales 29X Profit Margin .08= 2.32
ROA=2.32X 17.5= 13.26 Move decimal place by 2 to the right and average. 0.13256=13.26
Total Equity is 17.5-6.3=11.2
ROE=2.32/11.2
Four Basic Views of the Stock Market
Technical Analysts believe that stock prices tend to move in predictable trends. Charts and
technical indicators can be used discern patterns in the stock prices and assist in making buy and sell
decisions.
Fundamental
LG1-LG7 Use the following financial statements for Lake of Egypt Marina to answer problems 3-29
through 3-32.
Lake of Egypt Marina, Inc.
Balance Sheet as of December 31, 2012 and 2011
(in millions of dollars)
2012
2011
Liabilities & Equity
2012
Assets
Cur
Chapter 5
This chapter expands the basic concepts of Time Value of Money from Chapter 4 to incorporate
annuities, perpetuities, nonannual compounding, amortization, and multiple cash flows.
What is an Annuity?
Annuity is the finance term for payments
A