Input
Periods (n)
Interest (i)
Value at T0 (PV)
Value at T10 (FV)
Value
35
0.1
$2,000.00
($56,204.87)
=FV(B4,B3,B5)
Comment
Annual periods
Annual interest rate
Price
Value of T10
Input
Periods (n)
Int
F370 Homework #2
DUE: Tuesday, September 8th at 11:55pm
1. A lease contract has seven annual payments of $400. What should an investor pay for
this contract if she needs an annual return of 4.9% to ju
Finance Lecture Notes Part 2
B2: Risk and Return for Stocks
Where does r come from?
People have their own opinions, formulate their own buy and sell decisions
The market then aggregates the opinions o
Homework #3 Opens: September 10th 4:00 pm; Due: September 13th 11:55pm
1. Mary Glass is interested in investing her money for a short period of time in a low risk contract.
One of the possibilities sh
Finance Lecture Notes Part 2
B3: Capital Investment and Executive Incentives
CFO
Overriding goal: maximize firms share price
Project Value Creation
General Ideas and Project IRR
Project represents som
Homework #4 DUE: Sunday, September 20th at 11:55pm
1. You just agreed to a store loan for the purchase of a new flat screen TV. You agreed to a loan amount
of $2,200, an annual interest rate of 14.2%,
F370 Midterm Study Guide
*Disclaimer: use this as a reference only; complete the practice problems to develop an understanding
of the type of questions youll need to solve
A1 Intro to Financial Contra
F370 Final Exam
B3 (4 Concept., 7 Quant.)
Yield-to-Maturity, Implied Return or Implied Yield
The treasury bond market is so competitive that yield-to-maturity=implied
return=implied yield
Yield-to-m
F370 B3 Study Pack Solutions - Page 1
2017 Dan Greiner
Solutions to B3 Problems
1. Return and Wealth Confidence Intervals. You have built a portfolio of stocks and believe
that its expected (required
Your house was worth $300,000 on the day you bought it (for $60,000 down and a 30-year mortgage
loan of $240,000). After one year, you owe $237,053 on the mortgage loan (see calculation on p. 89).
So,
Homework #6 Due: Sunday, October 15th 6:00pm
For Questions 1 6, use the following information: (abbreviations come from the B1 Lecture
Unit)
S = $20,000,000
END during operating years= $14,000,000
END
Homework #7: Due: Sunday, October 22nd 6:00pm
B1 Questions
1. A company with a Tax Rate (T) of 30% books an expense of $2.4 million dollars to pay a
consultant for her work on NPV analysis. What is th
F370 Instructions for Weekly Homework
I.
II.
PRINT THIS FILE and complete the following set of numerical and conceptual
questions according the ground rules for homework (see below).
Take the Canvas T
Early Payment Incentive: 2/10, n/30 (2 is discount %, 10 = number of days in discount period, n
= Net (Total sales returns), 30 = Maximum credit period
Net Sales: Sales Revenue - Credit Card discount
Finance Final Review
B1 Readings: (Risk vs. Return for Individual Bonds)
1) Treasury Bonds
a) Issued by a countrys government to raise money, highly competitive market
b) Not a market for small trader
F370 Exam 2 Study Guide and Notes
B2: Applied DCF: Risk vs. Return for Individual Bonds (and other debt contracts)
C1: Risk and Return for Stocks: A First Look
D1: Applied DCF: Fixed Asset Purchases a
F-370 Final Exam Study Guide
C1 Risk and Return for Stocks
1. Review of Basic Risk-Return Concepts
One dollar in cash today is worth more to a person than a claim on a dollar to be
received at some ti
Finance Lecture Notes Part 2
B1: Applied DCF: Risk v. Return for Individual Bonds (and other debt contracts)
Treasury Bonds
Issued by countrys treasury department to raise money for the government
U.S