Ch 03 Inclass Exercises Solutions
Chapter 03 Inclass Exercise Statement of Changes
Cost of Goods Sold
Statement of Cash Flows
Ch21 C HW Solutions
1. International bonds issued in a single country and denominated in that country's currency are called:
A. Treasury bonds.
D. Brady bonds.
E. foreign bonds.
Refer to section 21.1
2. The price of one Euro expres
CF Quiz 1 Ch 06 Key
1-1. An ordinary annuity is best defined by which one of the following?
A. increasing payments paid for a definitive period of time
B. increasing payments paid forever
C. equal payments paid at regular intervals over a stated time peri
1. The length of time between the purchase of inventory and the receipt of cash from the sale of that inventory is called the:
A. operating cycle.
B. inventory period.
C. accounts receivable period.
D. accounts payable period.
E. cash cy
1. A project has an initial cost of $27,400 and the present value of the estimated cash inflows is $32,600. What is the
difference between these two values called?
A. net present value
B. internal return
C. payback value
1. A group of individuals got together and purchased all of the outstanding shares of common stock of DL Smith, Inc.
What is the return that these individuals require on this investment called?
A. dividend yield
B. cost of equity
1. The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not
accept the project is referred to as the project's:
A. incremental cash flows.
B. internal cash flows.
CF Quiz 1 Ch 04 Key
1-1. Phil is working on a financial plan for the next three years. This time period is referred to as which one of the
A. financial range
B. planning horizon
C. planning agenda
E. current financing period
CF Quiz 1 Ch 07 Key
1-1. Mary just purchased a bond which pays $60 a year in interest. What is this $60 called?
B. face value
D. call premium
Refer to section 7.1
2-6. The current yield is defined as the annual interest on a
1. GT Motors regularly issues short-term debt to finance its daily operations. Suddenly, the credit markets froze and no funds
were available for borrowing. Fortunately, the firm had some cash reserves saved that it was able to use to
CF Quiz 1 Ch 08
1-1. What is the model called that determines the present value of a stock based on its next annual dividend, the dividend
growth rate, and the applicable discount rate?
A. zero growth
B. dividend growth
C. capital pricing
D. earnings capi
CF Quiz 1 Ch 03 Key
1-1. Activities of a firm which require the spending of cash are known as:
A. sources of cash.
B. uses of cash.
C. cash collections.
D. cash receipts.
E. cash on hand.
Refer to section 3.1
2-7. The U.S. government coding system that cl
Ch 05 Inclass Exercise Solutions
Using a calculator
1. Suppose you invest $2,000 for 1 year compounded at 4% per year. What is the future value?
FV = 2000 (1+.04)^1 = 2080
2. Suppose you invest $2,000 for 2 years compounded at 4% per year. What is the fut
Ch 19 / 20 Inclass Exercises Solutions
1. What is the difference between disbursement float and collection float?
Generated when a firm writes checks
Available balance at bank > book balance
Checks received increa
Ch 21 Inclass Exercises Solutions
1. If it takes 1.45 Krone to purchase 1 US dollar, how many dollars buys one Krone?
=1/1.45 = US 0.6896
2. Suppose you visit Japan and spend 150,000 in yen at 110.55 Yen per dollar. Then you visit Thailand and sp
SOURCES OF FINANCE WORKSHEET 4
LONG-TERM SOURCES OF FINANCE
Long-term finance is usually thought of as being for periods in excess of
This Finance is for securing the resources for long-term growth.
For the long-term, a business essentially has
Syllabus for Business Finance (FIN 7310)
Th 10:00 am 1:00 pm.
The goal of this graduate level course is to pro
Sources of finance
(Or where can we get money from?)
Why do we need finance?
1. Setting up a business
2. Need to finance our day-to-day activities
4. Research into new products
5. Special situations such as a fall in sales.
Where does finance
Ch 18 Inclass Exercises Solutions
1. What are the differences between flexible and restrictive short-term financial policies?
Large amounts of cash and marketable securities
Large amounts of inventory
Liberal credit policies (large account
Ch 18 HW C Solutions
Prepare a quarterly cash budget for the ABC corporation.
Projected quarterly sales are:
Accounts receivable at the beginning of the year are $ 3,000. The firm has a 30 day avera
Ch 07 Inclass Exercises Solutions
1. Suppose you are looking at a bond that has a 10% annual coupon and a face value of $1000. There are 20 years to
maturity and the yield to maturity is 8%. What is the price of this bond? (1,196.36)
Annual Coupon Bonds
Ch 06 Inclass Exercise Solutions
1. Suppose you plan to deposit $600 today, 800 at the end of this year, then 400 the following year and finally 1,000 in
year 3. If you can earn 5%, what is this stream of payments worth today? (2,588.55)
PV of Uneven Mult
CF Quiz 1 Ch 05 Key
1-1. You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the
value of this investment one year from now?
A. future value
B. present value
C. principal amounts
D. discounted v