Name
Finance 3003
Spring 2014
Quiz 2 March 6, 2014
Following you will nd 4 questions/problems. On the discussion questions
please be brief and to the point. Use short paragraphs that contain one idea.
Show all work and clearly identify your nal solutio
Ch 7:
1. Be able to distinguish between a primary and secondary market and know how the
primary
and secondary markets interact with stock offerings:
Primary market: market for the sale of new securities by corporations.
Secondary market: market in which p
Newly Part
CH 11
1. Be able to describe the different capital markets:
Dow Jones Industrial Average: Index of the investment performance of a
portfolio of 30 blue- chip stocks.
Standard & Poors Composite Index: Index of the investment performance of a
por
FIN 3003: Business Finance
Bond Examples
1. What is the value of an annual coupon bond with a par value of $1,000, an annual coupon
payment rate of 7%, 9 years to maturity, and a yield to maturity of 9%?
I/Y = 9%
P/Y = 1
PMT = $70
N=9
FV = $1,000
PV = -$8
FIN 3003: Business Finance
Multiple Cash Flow Examples
Three points each unless noted. The assignment must be submitted digitally as pdf files.
Handwritten assignments are acceptable but must be scanned and submitted as a pdf.
1. Given an interest rate of
FIN 3003: Business Finance
Multiple Cash Flow Examples
1. How much would you receive in 10 years if you initially invested $10,000 at 6.7%
compounded annually, invested $8,100 after 2 years at 6.9% compounded annually,
$7,700 after 3 years at 7.2% compoun
FIN 3003: Business Finance
Multiple Cash Flow Examples
Three points each. The assignment must be submitted digitally as pdf files. Handwritten
assignments are acceptable but must be scanned and submitted as a pdf.
1. Given an interest rate of 6.65% compou
FIN 3003: Business Finance
Bond Examples
1. What is the value of an annual coupon bond with a par value of $1,000, a coupon payment
rate of 6.5%, 8 years to maturity, and a yield to maturity of 9.25%?
I/Y = 9.25%
P/Y = 1
PMT = $65
N=8
FV = $1,000
PV = -$8
FIN 3003: Business Finance
Single Cash Flow Examples
1. What is the Present Value (PV) of $5,000 received in 4 years given annual interest
compounding and a prevailing interest rate of 6%?
FV = $5,000
I/Y = 6
N=4
PMT = 0
P/Y = 1
PV = -$3,960.47
FV = $5,00
FIN 3003: Business Finance
Single Cash Flow Examples
1. What is the Present Value (PV) of $5,000 received in 4 years given annual interest
compounding and a prevailing interest rate of 6%?
2. What is the Present Value (PV) of $20,000 received in 6 years g
FIN 3003: Business Finance
Multiple Cash Flow Examples
1. Given an interest rate of 5.9% compounded annually, how much would you receive in 9
years if you initially invested $2,000, invested $3,000 after 1 year, $3,000 in year 3,
$4,000 in year 5, and $4,
FIN 3003: Business Finance
Single Cash Flow Examples
1. What is the Present Value (PV) of $7,000 received in 6 years given annual interest
compounding and a prevailing interest rate of 8%?
FV = $7,000
I/Y = 8%
N=6
PMT = 0
P/Y = 1
PV = -$4,411.19
FV = $7,0
Exam1
CH1
1. Know the different areas in financial study and application:
Finance is the study about investing and loan:
Investing: put the extra money cash where to depend on what project you choose to do,
also once you stopped your cash will be all out.
FIN 3003: Business Finance
Spring 2015
Homework 4
Due: Tuesday, March 10, 2015 5:00 pm
You are responsible for determining which projects your employer invests in for the coming
year. Your company has a riskless opportunity cost of capital of 4%. Using th
CH1
1.
The investment (capital budgeting decision):
Decision to invest tangible or intangible assets.
The financial decision:
The form and amount of financing of a firms investments.
The investor receive shares of stick and become shareholders, part-owner
FIN 3003: Business Finance
Single Cash Flow Examples
1. What is the Present Value (PV) of $4,000 received in 5 years given annual interest
compounding and a prevailing interest rate of 7%?
FV = $4,000
I/Y = 7
N=5
PMT = 0
P/Y = 1
PV = -$2,851.94
FV = $4,00
Chapter 11
1. Be able to describe the different capital markets.
Capital markets: include primary markets, where new stock and bond issues
are sold to investors, and secondary markets, which trade existing securities.
Market indexes: measure of the invest
Exam Number _
FIN 3003: Business Finance
Spring 2016
Exam 1
Version 1
The document Policies and Procedures Relating to Academic Misconduct in the Collins College of Business shall
apply to this course. Furthermore, I have read and certify that I understan
EXAM 2
Ch7
1.
Be able to distinguish between a primary and secondary market and know how
the primary and secondary markets interact with stock offerings.
Primary market: when a company raised more capital by selling, these sales of shares by
the company a
Assignment 1
Consider the following simple corporate example with one stockholder and one
manager. There are two mutually exclusive projects in which the manager may
invest and two possible manager compensation contracts that the stockholder
may choose to
Asignatura: Historia de Honduras
Tarea: Resumen visita a museo
Catedrtico: Lic. Sandra Amador
Nombre: Jamie Rebeca Aguilar (61421009)
Fecha: 16 de Junio del 2015
Me gusto el hecho de que el museo estaba dividido por periodos. En cuanto a los
inmigrantes q
Asignatura: Historia de Honduras
Tarea: Investigacin de Etnias en Honduras (Tawahkas)
Catedrtico: Lic. Sandra Amador
Alumnos:
Elvis Muoz (61521013)
Jamie Aguilar (61421009)
Grevil Puerto (61421254)
Jennifer Flores (21311167)
Fecha: 12 de Mayo del 2015
Gru
FIN 3003: Business Finance
Dividend Discount Practice Problems
1. The GHI Group has the following expected dividends for the next 6 years: $2.20, $2.45, $2.85,
$3.10, $3.50, and $3.70. GHI Groups dividend expectations are forecasted to reach an annual
ste
Risk and Expected Return Example
Scenario
Recession
Normal
Boom
Spring 2014
Probability
10%
70%
20%
Company 1
-12%
5%
9%
Company 2
8%
6%
-3%
What is the Expected Return for each company?
What is the Variance of Returns for each company?
What is the Standa
FIN 3003: Business Finance
Spring 2014
Homework 1: Time Value of Money
Due: Tuesday, January 28, 2014 5:00 pm
Three points each. The assignment must be submitted digitally as pdf files. Handwritten
assignments are acceptable but must be scanned and submit
FIN 3003: Business Finance
Fall 2013
Homework 3: Time Value of Money
Due: Tuesday, February 11th at 5:00 pm
Three points each unless noted. The assignment must be submitted digitally as pdf files.
Handwritten assignments are acceptable but must be scanned
FIN 3003: Business Finance
Fall 2013
Homework 2: Time Value of Money
Due: Tuesday, February 4 at 5:00 pm
Three points each. The assignment must be submitted digitally as pdf files. Handwritten
assignments are acceptable but must be scanned and submitted a
FIN 3003: Business Finance
Spring 2014
Homework 4
Due: Friday, March 7, 2014 5:00 pm
You are responsible for determining which projects your employer invests in for the coming
year. Your company has a riskless opportunity cost of capital of 4%. Using the