NOTE: Review your notes for the Chapter 2 lecture as well as the Chapter 2 excel video before proceeding.
Every cell should have a formula or text, you should not type numbers in cells.
Chapter 2.
a. Use the data given to calculate annual returns for Bart
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[LQY
Nerth Carolina State University
BUS 420
Fall 2013
Test #1
' Name:
Date: ._-_.+-_m4-msw_,_r . -.;._ _-:-
MultipleChoice (3 Points each!
1. If" 1ts YTM rs less than its coupon rate, a bond will sell at a , and increases p
in market interest rat
BUS 420 (DE)- Spring 2014 Course Schedule and Due Dates
Week # / Date
Assignment
Due Date
Syllabus Quiz
Sunday 1/12/14
SECTION #1: Chapters 1, 7, 8, 9, 21, 22
Topics: Financial Statements & Working Capital Management
Week 1:
1/6- Sunday, 1/12
Monday,
Chap
NOTE: I strongly recommend that you review pages 300-308 before proceeding.
Chapter 9.
Cumberland Industries' financial planners must forecast the company's financial results for the coming year. The forecast for
many items will be based on sales, and any
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
moodle.wolfware BUS 420 (002) Fall, 2011 Quizzes Chapter 21 Homework Review o
NOTE: I strongly recommend that you review pages 300-308 before proceeding.
Chapter 9.
Cumberland Industries' financial planners must forecast the company's financial results for the coming year. The forecast for
many items will be based on sales, and any
CAMPUS DIRECTORY
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MYPACK PORTAL
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
moodle.wolfware BUS 420 (002) Fall, 2011 Quizzes Chapter 8 Homework Review of
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
moodle.wolfware BUS 420 (002) Fall, 2011 Quizzes Chapter 8 Homework Review of
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
moodle.wolfware BUS 420 (002) Fall, 2011 Quizzes Chapter 22 Homework Review o
Chapter 8 #1
Ratio analysis involves a comparison of the relationships between financial statement
accounts so as to analyze the financial position and strength of a firm.
Answer:
True False
Correct
Marks for this submission: 2/2.
Question 2
Marks: 2
The
Blackwell bonds have a face value of $1,000 and are currently quoted at 98.4. The
bonds have a 5 percent coupon rate. What is the current yield on these bonds?
Choose one answer.
a. 4.67 percent
b. 4.78 percent
c. 5.08 percent
d. 5.33 percent
e. 5.54 perc
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
moodle.wolfware BUS 420 (002) Fall, 2011 Quizzes Chapter 22 Homework Review o
Section #1-Recommended Review Problems_Solutions
Chapter #1
PROBLEMS (p. 25-26)
(Note: Some of these problems require the use of the Time Value of Money Tables in the Chapter 1 Appendix, pp. 41-44).
1. Using the rule of 72, approximate the following amoun
Problem-Chapter 22-3
Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan
of $50,000. First City has offered Hawley the following alternatives. Calculate the effective
annual interest rate for each alternative. Whic
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BUS 420 (002 & 003) Fall, 2011 Financial Management of Corporations
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Section #2-Recommended Review Problems_Solutions
Chapter #4 -page 134
Problems:
3. A payday loan company charges 4 percent interest for a two-week period. What would be the annual interest rate from
that company?
52 weeks / 2-week period = 26 periods X .0
1. Calculate the expected return on ABC stock using the following information:
W
4? Scenario Probability Expected Return if happens Contribution
Strong .4 15% (a - 0
Average .3 5% I ' 3
Weak .3 40% . " 3. 0 14
9.5%
2. How do we measure stand alone risk?
Chapter 2 Notes
The intrinsic value of a company is the present value of its expected future cash flows
(FCF) discounted at the weighted cost of capital (WACC). This chapter shows how to
measure a firms risk and the rate of return expected by shareholders
Chapter 1 Notes
Legal Structure of the Firm-does affect aspects of firms operations
o Proprietorship
Easy & Inexpensive to form-advantage
Subject to few Regulations-advantage
Difficult to obtain large sums of capital-disadvantage
Unlimited liability-d
Chapter 3 Notes
o Feasible set of portfolios-All portfolios that can be constructed from a given set of
assets
o Efficient portfolio-One that offers the most return for given amount of risk or least
risk for given amount of return
o Optimal portfolio- Inv
BUS 420
Fall 2013
Homework #3
Due: September 17" (Tuesday)
1. a. Provide the SML formula for determining the required rate of return and explain it in
words.
rd 2w rm in 6c. rm w
W. Azgmv 513 Mjmm gauwg mg M
H ._ q '0 Q. a:
We emergaal Aagssdaaawt rm 31?
LE ff- vi.) -'i .- QR-K iii"; Hg
Multiple Choice [3 Points each
1.
Which of the following does NOT always increase a companys value?
(a) Increasing the expected growth rate of sales.
b. Increasing the expected operating protability (N OPAT/Sales).
Gt";
De
True/False (3 oints each)
l. The optimal distribution policy for a firm strikes a balance between
current dividends and capital gains, and results in the maximization of
stock price.
@ True
. False
2. In a world with no taxes, MM show that a firm's capi
BUS 420
Spring 2016
Homework #4
Due: Monday February 8, 2016
1. Smith Inc.s most recent dividend was $2.40 per share (i.e., Do: $2.40). The dividend is
expected to grow at a rate of 6 percent per year. The current stock price is $50.57, what is the requir
Welcome to Bus. 225-Review for Chapters 4-7.
Items to have on hand: Textbook, calculator
Agenda
Topics
to review
Credit
& Banking
Autos & Homes
Selected
Exam
review problems.
Format
Credit & Banking
Types of Financial Institutions
Deposit type instituti
