Monday, March 10 Exam
Our second exam on Monday, March 10, will cover chapters 5, 7, 8 and 9.
For this exam you will need to bring a calculator. You may also bring a 3 by 5 inch card
with your notes on both sides.
To help you prepare for the exam problems
Problem 10-1: After-Tax Cost of Debt
Problem 10-2: After Tax Cost of Debt
Problem 10-6: Cost of Eq
Homework: Chapter 13 (part 2)
Projected Net Cash Flows
Investment outlay for new
Wonder Widgets units sold
Original Widgets unit sales
Net additional units sold
Inflated selling price of units
Chapter 21 Homework
Cost of Trade Credit
Credit terms of 3/10, net 45
3/10 means that the buyer gets a 3%
discount if they pay in 10 days.
Net 45 means that the normal payment
terms are 45 days, and if you pay in 45
days, the full amount is due w
Chapters 15 Problems
Problem 15-1: Break-Even Quantity
$500,000 fixed costs (F)
Per unit variable costs of $50 (V)
Per unit selling price of $75 (P)
Break-even quantity = F/(P-V) = 500,000/
(75-50) = 20,000 units
Additional Problem: Change to
Monday, April 7 Exam
Our third exam on Monday, April 7, will cover chapters 10 and 11.
For this exam you will need to bring a financial calculator. You may also bring a 3 by 5
inch card with your notes on both sides.
To help you prepare for the exam probl
Department of Finance - College of Business Administration - Kent State University
FIN 36054 Intermediate Business Finance Section 002 Spring, 2014
Lecturer: Doug Lightner
Office: BSA 415
Office Hours: Immedia