Question 1
10 out of 10 points
What is the net present value of a project with the following cash flows if the discount
rate is 14 percent?
YEAR
CF
0
-39400
1
12800
2
21700
3
18100
Selected Answer:
7
Question 1
1. The Green Balloon just paid its first annual dividend of $0.12 a share. The firm plans to
increase the dividend by 3.5 percent per year indefinitely. What is the firm's cost of equity
if
Question 1
1. Blue Lagoon stock is expected to produce the following returns given the various states
of the economy. What is the expected return on this stock?
STATE OF ECONOMY
PROBABILITY
RATE OF RE
3. Donut Delite has total assets of $31,300, long-term debt of $8,600, net xed assets of $19,300,
and omers' equity of$21,100. mat is the 1Iralue of the net working capital?
mutton-
4. The Good Life S
3. Use the following tax table to answer this question:
A conupan,r has taxable incorne of $205,100. How much does. it owe in taxes?
QCBADOw K 0.29% :-
e I 019qu
9. In the above question, what were
1. A company purchases a new 51D million building, nanced half with cash and half with a
bank loan. How would this transaction affect the company's balance sheet? Circle the answer.
a. Net plant and e
CH7 Quiz
Question 1
10 out of 10 points
The Pancake House pays a constant annual dividend of $1.25 per share. How much are
you willing to pay for one share if you require a 15 percent rate of return?
CH6 Quiz
Question 1
10 out of 10 points
A bond has a $1,000 face value, a market price of $1,036, and pays interest payments of
$70 every year. What is the coupon rate?
Selected Answer:
7.00%
Answers
CH3B HW
Pleaseusethefollowingfinancialstatementsforquestions1and2:
Starbucks' Balance Sheet
(in millions of dollars)
Assets
Cash and equivalents
Short-term investments
Accounts receivable
Inventories
CH3A HW
1. A company purchases a new $10 million building, financed half with cash and half with a
bank loan. How would this transaction affect the company's balance sheet? Circle the answer.
a. Net p
CH7 HW: Amber Henson 5/24/2017
1. The Whirlwind Co. just paid an annual dividend of $3 a share. The firm expects to pay
dividends forever and to increase the dividend by 5 percent annually. What is th
Question 1
10 out of 10 points
A credit card has an annual percentage rate of 12.9 percent and charges interest monthly.
The effective annual rate on this account:
Selected Answer:
>12.9%
Answers:
<1
You want to invest an amount of money today and receive back twice that amount in the
future. You expect to earn 8 percent interest. Approximately how long must you wait for your
investment to double
1
Amount
Years
Amount now
Interest
Monthly deposit
$57,000
5
$10,000
0.10%
$750.46
2
Cost
APR
Quarterly payments
Years
$15,000,000
6%
$400,000
13.88 Years
3
Bank I
APR
EAR
Bank II
6.75%
6.96%
Choose B
6. Intellus has long-term debt of $5 million, owners' equity of $7.5 million, current assets of $1
million, gross fixed assets of $20 million, and accumulated depreciation of $7 million. What is
the f
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FIN.3213: PRINCIPLES OF FINANCE
CH3B QUIZ
5/14/17 2:15 PM
5/14/17 2:27 PM
5/18/17 11:59 PM
Completed
100 out
Multiple Cash Flows
FV Example 1
1-1 5-1
You think you will be able to deposit $4000
at the end of each of the next three years
in a bank account paying 8% interest. You
currently have $7000 in the a
CH6Practice
1. I want to have a real return of 8% for next year. The expected inflation is 3% for the
coming year. What nominal rate should I earn in order to have a real return of 8%? Do
not use appr
PROJECT VALUATION
We are covering three project valuation methods: the payback period method,
the NPV method, and the IRR method.
Payback Period Method:
In how many years are we getting our investment
Stock Valuation Models
In order to make an investment decision in stocks, we will use one of
the following three stock valuation models. For all three models, we will
estimate the value of the stock (
1-1 1-1
Chapter 1
Introduction to Financial Management
1
1-2 1-2
Key Concepts and Skills
Know the basic types of financial
management decisions and the role of the
financial manager
Know the financi
CH10Practice
1. You are looking at a new project and you have estimated the following cash flows:
Year 0: CF = -165,000
Year 1: CF = 63,120
Year 2: CF = 70,800
Year 3: CF = 91,080
Your required re
CH5bPractice
1. Prepare an amortization table (the first two months only) for a fixed-rate mortgage loan
with the following info:
Loan= $100,000
APR=6% with monthly compounding
Monthly payments
30 yea
Cost of Capital
In project valuation methods like NPV and IRR, we have seen that firms need to
beat the cost of capital to make money. So they need to choose positive NPV
projects (where they are earn
1-1 2-1
The Balance Sheet
The balance sheet is a snapshot of the
firms assets and liabilities at a given
point in time
Assets are listed in order of decreasing
liquidity
Ease of conversion to cash
CH7Practice
1. Suppose Big D, Inc. just paid a dividend of $.50. It is expected to increase its dividend by
2% per year. If the market requires a return of 15% on assets of this risk, how much
should
CH8 PRACTICE
1. Stock X is expected to produce the following returns given the various states of the economy.
What is the expected return on this stock?
Expected return = (0.3 -0.27) + (0.65 0.16) + (
Finding Bond Prices, YTM, and Coupon Rate
Bonds with Annual coupons
Eg1)
Annual coupons, asking the price
coupon rate = 5%
maturity = 10 years lef
yield to maturity = 4%
price?
If par is not given, ta