BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
FIN 409/509QUIZ#5 VOCABULARY LISTS
ANSWER KEY
1. F
2. T
3. T
4. T
5. T
6. T
7. F
8. T
9. T
10. T
11. T
12. F
13. T
14. F
15. F
16. F
17. F
18. T
19. T
20. T
21. F
22. T
23. T
24. T
25. T
26. F
27. A
28. T
29. T
30. T
31. T
32. B
33. C
34. C
35. A
36. D
3
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
Final Examination
Financial Accounting (ACCT 605)
Instructions:
1) Solve all 8 questions. Please show all your
workings/calculations (legible). It will help me giving
points for partial correct answers.
2) Please download and save the Word exam file with
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
FIN 409/509 Assignment#11
Find the TIAACREF 2020 Retire Life Cycle Fund (TCLTX) using the
Log in To Morningstar sheet and complete the template below.
Structured for people who are retiring around the year 2020.
(55% Stocks, 43% Bonds) 5 year return 8.77
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
FIN 409/509 Assignment#11
Find the TIAACREF 2020 Retire Life Cycle Fund (TCLTX) using the
Log in To Morningstar sheet and complete the template below.
Structured for people who are retiring around the year 2020.
(55% Stocks, 43% Bonds) 5 year return 8.77
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502Quiz#1Based on Exercise#1
Solve the following problems. Rule of 72, Simple Interest, Future Value,
Present Value, Future Value Ordinary Annuity, Present Value Ordinary
Annuity, Future Value Annuity Due, and Present Value Annuity Due.
Rule of 72
1
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502  Economic Quiz#2
Utilize the Internet to Answer the Following Economic
Questions for BUS 502
1. What is the term for the interest rate that the Federal Reserve
uses when it loans money to member banks? (Hint starts with
the letter D) The Discoun
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502 Quiz#4 Based on Exercise#4
Calculate the Net Present Value from the following nine problems.
1. II = $250,000 YR1CF = $90,000 YR2CF = $120,000 YR3CF =
$150,000 R = 12%
(90000/(1.12)^1+120000/(1.12)^2+150000/(1.12)^3)250000 = +
$32,787.44 [LOOK FU
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502 Quiz#6 Based on Exercise#6
1. The capital structure (Wd, Wpfd, and We) of Tucker
Company is 40%, 20%, and 40%, and the cost of the bonds,
preferred stock, and common stock (Kd, Kpfd, and Ke) is 8%,
5%, and 12%. Calculate the Weighted Average Cost
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502 Quiz#2 Based on  Exercise#2
1. Company A has its common stock selling for $80 a share, there
is $20 million of net income, and 4 million shares outstanding.
Calculate the Earnings Per Share and Price Earnings ratio.
Verify that the Earnings Per S
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502 Quiz#3 Based On Exercise#3
Calculate the annual % return from the following capital gain
problems.
1. An investor bought $18,000 worth of McDonalds shares 5 years
ago, and today they are worth $35,000.
(35,000/18,000)^1/51 = 14.22% ANNUAL RETURN
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502  Economic Quiz#4
Utilize the Internet to Answer the Following Economic
Questions for BUS 502
1. What does the term laissez faire mean? Abstention by
governments from interfering in the workings of the free market.
2. What is Adam Smiths invisib
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502  Economic QUIZ#1
Utilize the Internet to Answer the Following Economic
Questions for BUS 502
1. What is the slang term for the Federal Reserve?
The Fed
2. Who is the current Federal Reserve Chairperson?
Janet Yellen
3. Who is the previous Fede
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502  Economic Quiz#3
Utilize the Internet to Answer the Following Economic
Questions for BUS 502
1. What does Flight To Quality refer to? Flight to quality is the
action of investors moving their capital away from riskier
investments to the safest p
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502 Quiz#5 Based on  Exercise#5
5.
1.
II = $270,000 year 1 to 5 cash flow $90,000, $90,000, $90,000,
$90,000, and $90,000. Calculate the years payback.
90,000+90,000+90,000/90,000 = 3.10 Years
2.
II = $400,000 year 1 to 6 cash flow is $100,000, $150,
BUS 502  Principles of Finance & Econ (1037), Kent Tucker  201630_1037
BUS 502

Summer 2016
BUS 502  Economic Quiz#5
Utilize the Internet to Answer the Following Economic
Questions for BUS 502
1. What is the concept of Opportunity Cost? Opportunity cost is
a key concept in economics, and has been described as expressing
"the basic relationship