MANAGERIAL FINANCE HOMEWORK #2
Summary of Homework #2
This homework is based on Chapters 6, 5 and 7
There are 6 questions in this assignment. Points assigned to each question are shown below:
Q1: 0.5 points
Q2: 1.3 points
Q3: 1.3 points
Q4: 1.3 points
Q5:
MANAGERIAL FINANCE HOMEWORK #1
Summary
2015
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are more challenging. Points
assign
Discounting: A crash course in
8 examples
BY EMRE UNLU
Overview
Purpose
Learning how to find present values for commonly
encountered fundamental cashflow schedules
Complex cashflow schedules can be broken down into these
fundamental schedules
Exampl
MANAGERIAL FINANCE HOMEWORK #1
Summary
2015
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are more challenging. Points
assign
MANAGERIAL FINANCE HOMEWORK #1
Summary
2015
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are more challenging. Points
assign
MANAGERIAL FINANCE HOMEWORK #2
2015
Summary of Homework #2
This homework is based on Chapters 6, 5 and 7
There are 6 questions in this assignment. Points assigned to each question are shown below:
Q1: 0.5 points
Q2: 1.3 points
Q3: 1.3 points
Q4: 1.3 point
MANAGERIAL FINANCE HOMEWORK #1
Summary
2015
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are more challenging. Points
assign
MANAGERIAL FINANCE HOMEWORK #3
Summary of Homework #3
This homework is based on Chapters 9, 12 and 16.
There are 4 graded and 4 warm up questions in this assignment. Each question is posted under a separate work sheet.
Questions 1 and 2 are 1.0 points eac
Mid Term Exam Chapter 11  The Cost of Capital
MULTIPLE CHOICE
1. Which of the following is NOT a capital component when calculating the weighted average cost of
capital (WACC)for use in capital budgeting?
a. Longterm debt.
b. Accounts payable.
c. Retain
GRBA 811 Chapter 2 Practice
21
a. Annual Report a report of a firms operating results during the past fiscal year. Includes
discussion of new developments that will affect future operations. Includes FOUR basic
financial statements: 1) Balance Sheet, 2)
MANAGERIAL FINANCE HOMEWORK #1
Summary
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are more challengin
Q1: 0.10 points
Q2:
GRBA 811 Chapter 5 Practice
5 ST1
Bonds Sold @ (1,000)
INT = 0.12
T = 30 years (on 12/31/19)
SemiAnnual Bond (6/30 & 12/31)
a. Since the bond was sold at par, the YTM is equal to the coupon rate. YTM = 12%.
b. N = 50 (2*25 payments, due to semiannual p
Firm's problem
Needs to borrow $8 million
Currently the firm's cost of borrowing is 25%
XYZ's BOND
IOU statement
t=0
t=1
$1,000
How much will I get for each bond?
$800.00 =>10,000 bonds @ $800 each
Agg cash flow
t=0
$8 million
t=1
$10 million
What if r=2
Annuity
t=0
t=1
t=2
t=3
$30
$30
$30
r=10%
PV=?
#1 with NPV formula
$74.61 $74.61
30
30
30
2 3 74 .61
1 .1 1 . 1
1 .1
#2 with long way (bruteforce) formula
#3 special case annuity formula (especially useful when you have 100s of payments)
1
1
1
PVA PMT
Problem 52
Problem 57
T=
Par Value =
Coupon Rate =
YTM =
Current Yield = Annual Coupon Payments / Price
T =7
Par Value = $1,000
Coupon Rate = 9%
YTM = 8%
T
0
Price $1,052.06
Current Yield 8.55%
T
Price
0
1
2
3
4
5
6
7
$1,052.06
$1,046.23
$1,039.93
$1,03
Future Value
Opp. #1
t=0
$100
Opp #2
t=0
t=1
$0
$110
R = 50%
Tranform Opp #1 so that it is comprable to Opp #2
Trans OPP #1
Opp #2
t=0
$0
t=0
$0
t=1
$150
t=1
$110
Future Value
100 * (1 %50) $150
Forany int erestr
FV PV (1 r )
Opp. #1
t=0
t=1
t=2
$100
$150
MANAGERIAL FINANCE HOMEWORK #2
Summary of Homework #2
This homework is based on Chapters 5 and 6.
There are 4 questions in this assignment. Points assigned to each question are shown below:
Q1: 1.5 points
Q2: 1.5 points
Q3: 1.5 points
Q5: 1.5 points
Total
Summary of Homework #1
This homework is based on Chapters 1, 2, 3, and 4.
There are 10 questions in this assignment. First 7 questions are warmup questions and the last three are
more challenging. Points assigned to each question are shown below:
Q1: 0.1
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Notes on Perpetuities
Level Perpetuities
Suppose we have a level perpetuity with cash payments denoted as C. The discount rate
is r. The PV can be expressed as follows:
calculus shows that PV
PV C
t (1r )t
1
. A well know result in
C
.
r
Example 1
Suppos
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MANAGERIAL FINANCE HOMEWORK #3
Summary of Homework #3
This homework is based on Chapters 9, 12 and 16.
There are 4 graded and 4 warm up questions in this assignment. Each question is posted under a separate work sheet.
Questions 1 and 2 are 1.0 points eac
MANAGERIAL FINANCE HOMEWORK #3
Summary of Homework #3
This homework is based on Chapter 7 and relevant virtual meetings
Q1 2 points
Q2 2 points
Q3 2 points
Total
6 points
This assignment can be completed based on group effort.
If you have any questions, p