Corporate Finance Test 1 Review
Chapter 1
The controller's office handles cost and financial accounting, tax payments, and management
information systems. The treasurer's office is responsible for man
To get the historical average of the individual values we add up the yearly returns and divide by 80. Average
returns are nominal because we arent worried about inflation. Historical T-bills have had
1. Quick Computing currently sells 17 million computer chips each year at a price of $28
per chip. It is about to introduce a new chip, and it forecasts annual sales of 22 million of
these improved ch
C hapter 7 Slides
The yield to maturi ty is the rate of return you will earn if you purchase a
bond today at the market price and hold the bond until it matures. This rate
assumes the bond issuer pays
Annual Salary
Growth Rate
Time
Tax Rate
FV Ending Salary
Lost Income Ritter
Lost Income Bradely
Net Income Ending Salary
Dewey and Louis
$50,000
3%
35 years
26%
$140,693
$104,545
$51,500
$104,113
MBA
MBA Case
1. In terms of age there are many things Ben needs to take into consideration before making his
decision:
a. Scenario 1 (Staying with his current Job)
i. Is a promotion to Investment Banker p
To get the h istorical average of the individual values we add up the yearly returns and divide by
80. Average returns are nominal because we arent worried about inflation. Historical T-bills have ha
Note here you may be asked to compute the Effective Annual Rate (EAR). The equation is EAR=
(1+r)^#compounding periods (ex. Semiannual= 2)-1.
Interest Rate Risk- All other things being equal, the lon
B ryan W. Redd
Corporate F inance H MWRK I #5
Summer 2010
1. g= b x ROE
(d) Dividend payout ratio = 1.26/4.54(EPS0)= .27753304
(b) Retention rate= 1-.27753304=. 7224669604
(g) Growth rate = .722466960
Note here you may be asked to compute the Effective Annual Rate (EAR). The equation is EAR=
(1+r)^#compounding periods (ex. Semiannual= 2)-1.
Interest Rate Risk- All other things being equal, the lon
Bryan W. Redd
Corporate Finance Hw #2
Summer 2010
Bullock Gold Mining
1. Payback Period= 3.78
a. IRR=
19%
b. MIRR=
15%
c. NPV=
$115,109,801.56
2. The company should open the mine because the NPV for t
Bryan W. Redd
Corporate Finance Hw #2
Summer 2010
Bullock Gold Mining
1. Payback Period= 3.78
a. IRR=
19%
b. MIRR=
15%
c. NPV=
$115,109,801.56
2. The company should open the mine because the NPV for t
Corporate Finance Homework 2(4)
Cost of Capital for Hubbard Computer, Inc.
Problem #1.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
For the quarte
For t