Analyzing and understanding data is an important part of decision
making. Econometrics is defined as the statistical methods used to analyze data
and make informed decisions. For this assignment, you are required to research
data related to an economic is
Econ 135: Corporate Finance
Sample Midterm Answer key
Multiple Choice Questions (20 points)
Please circle your choice. Each question is worth 2 points.
1. A current asset is:
A)
An item currently owned by the firm.
B)
An item that the firm expects to own
Econ 135: Corporate Finance
Sample Midterm
Multiple Choice Questions (20 points)
Please circle your choice. Each question is worth 2 points.
1. A current asset is:
A)
An item currently owned by the firm.
B)
An item that the firm expects to own within the
ECONOMETRICS ANALYSIS
1
Econometrics Analysis
Weeraya Thanprasert
Grand Canyon University: ECN 601
May 18th, 2016
ECONOMETRICS ANALYSIS
2
Econometrics Analysis
To understand and analyze data in economics way, it is important to understand the
economics th
Joint Finance and Plastics Project
(FIN 451, PLET 350)
Goal
Propose a manufacturing company that produces actual parts and prove that it is economically viable in
the greater Erie area (approx. 100 miles).
Project details
This is intended as a multidiscip
Time Value of Money (TVM)
&
Discounted Cash Flows (DCF)
1-1
Lump Sum, Annuity, and Perpetuity
Lump Sum - a single cash flow payment.
Annuity - finite series of equal payments that occur at regular
intervals (i.e., equal periodic payments).
If the first
FIN 451 Lesson 2
1. Lion Inc., has sales of $3386, total assets of $729, and a debtequity ratio of 0.87. If its return
on equity is 13 %. What is Lions Net Income? Hint:Use the DuPont Model. Net Income: 50.69
2. Consider the following financials for XYZ C
1. A) What is the future value in 11 years of $6147 invested in an account with a stated annual
interest rate of 4.2 %, compounded annually? (Round answer to 2 decimal places)
B) What is the future value in 11 years of $6147 invested in an account with a
Lesson 4: Bond and Stock Valuation and
Financial Options
Once you learned the tools of TVM and DCF analysis in FIN 301, your first application was in
the basic valuation of bond issues and shares of equity (common and preferred stock). Lesson 4
will exten
Name: _
Econ 135: Corporate Finance
Sample Final Exam
Multiple Choice Questions (2 points each)
Circle only one answer
1. Risk that affects a large number of assets, each to a greater or lesser degree, is called:
A)
Idiosyncratic risk.
B)
Diversifiable ri
Name: _
Econ 135: Corporate Finance
Sample Final Exam Answer key
Multiple Choice Questions (2 points each)
Circle only one answer
1. Risk that affects a large number of assets, each to a greater or lesser degree, is called:
A)
Idiosyncratic risk.
B)
Diver
1
FNCE 3010 (Durham). Fall 2010. Exam 3. Form A.
Multiple choice (3 pts each)
1. The slope of the security market line is given by which of the following?
(a) reward-to-risk ratio
(b) portfolio weight
(c) beta coecient
(d) risk-free interest rate
(e) Solu
1
FNCE 3010 (Durham). Fall 2010. Exam 3. Form A.
Multiple choice (3 pts each)
1. The slope of the security market line is given by which of the following?
(a) reward-to-risk ratio
(b) portfolio weight
(c) beta coecient
(d) risk-free interest rate
(e) mark
1
Exam 3: review
BLANK PAGE
2
Notes:
Capital structure
10%
ABC Inc. expects to earn cash ows of $100 per year forever. The rm is entirely equity nanced.
8%
The rm has 1000 shares of stock outstanding. The shares are trading at $1 per share. Ignore
taxes a
FNCE 3010 (Durham)
HW 10 (bonds)
1. Is it true that a U.S. Treasury security is risk-free?
Solution:
No. As interest rates uctuate, the value of a Treasury security will uctuate. Longterm Treasury securities have substantial interest rate risk. (But, they
FNCE 3010 (Durham)
HW 14 (CAPM)
1. Is it possible that a risky asset could have a beta of zero? Explain. Based on the CAPM,
what is the expected return on such an asset? Is it possible that a risky asset could have a
negative beta? What does the CAPM pred
FNCE 3010 (Durham).
HW 18 - capital structure
1. XYZ Corp., is all equity nanced. Its WACC is 11%. Suppose that it wants to issue some
debt in order to expand its operations. It estimates that investors will require a 6% yield
in order to hold this debt.
FNCE 3010 (Durham).
HW 19 WACC
1. If you can borrow all the money you need for a project at 6 percent, does it follow that 6
percent is your cost of capital for the project?
Solution:
No. The cost of capital depends on the risk of the project, not the sou
FNCE 3010 (Durham).
HW 20 dividends
1. The Readata Corporation practices a strict residual dividend policy and maintains a capital
structure of 60 percent debt, 40 percent equity. Earnings for the year are $5,000. What
is the maximum amount of capital spe
Econ 135: Corporate Finance
Midterm Exam Answer key
Multiple Choice Questions (12 points)
Each question is worth 2 points.
1. A loan where the borrower pays interest each period, and repays some or all of the principal of the
loan over time is called a(n)
1
FNCE 3010 (Durham). Fall 2011. Exam 2. Form A.
Multiple choice (4 pts each)
1. Preferred shareholders are granted:
(a) Solution: the right to dividends prior to common shareholders.
(b) a guarantee of dividends of a set amount every quarter.
(c) annual