BA 340 Midterm 1 Solutions
Multiple Choice
1.
2.
3.
4.
5.
6.
A
B
C
D
B
D
7. C
2000
ln
EAR = (1+0.05/4)^4 1 = 5.095%.
800 = 18.44
n=
ln(1 + 0.05095)
1 / 40
8. D
9. A
10. E
1,000,000
r =
1 = 6.7%
75,000
4.5% - 3.2% = 1.3%
We cannot determine the mat
Problems Chapter 6
Use the following table for problem 2.
Par Value
$1,000.00
$1,000.00
Years to
Maturity
10
10
Coupon Rate
8%
6%
Yield to
Maturity
6%
8%
Price
?
?
2. Price the bonds from the above table with semi-annual coupon payments.
ANSWER:
1
1 (1 +
Assignment for Case Study #2
Blanchard Importing and Distribution Co., Inc.
Due date: Wednesday, November 18th, in class.
Group work: you are allowed, but not required, to work in a group of up to three members.
Please turn in ONE copy for each group, wit
Financial Ratios and
Firm Performance
1
LEARNING OBJECTIVES
1.
Create, understand, and interpret
common-size financial statements.
2.
Calculate and interpret financial ratios.
3.
Compare different company performances
using financial ratios, historical fi
Forecasting and
Short-Term Financial Planning
12-1
LEARNING OBJECTIVES
1.
Understand the sources and uses of cash
that are used in building a cash budget.
2. Explain how sales forecasts are used to
predict cash inflow.
3.
Understand how production costs v
Working Capital
Management
13-1
LEARNING OBJECTIVES cycle and explain
1.
Model the cash conversion
its components.
2.
Understand why the timing of accounts
receivable is important and explain the
components of credit policy.
3.
Understand the concept of f
Capital Budgeting
9-1
Explain capital budgeting and differentiate between shortterm and long-term budgeting decisions.
Explain the payback model and its two significant
weaknesses and how the discounted payback period
model addresses one of the problems.
Capital Structure
LEARNING OBJECTIVES
1. Explain why borrowing rates are different
based on ability to repay loans.
2. Demonstrate the benefits of borrowing.
3. Calculate the break-even EBIT for different
capital structure.
4. Explain the appropriate borr
Risk and Return
8-1
1. Calculate profits and returns on an
LEARNINGholding period returns investment
OBJECTIVES to annual
and convert
2.
3.
4.
5.
returns.
Define risk and explain how uncertainty relates
to risk.
Appreciate the historical returns of variou
Dividends, Dividend Policy
and Stock Splits
LEARNING OBJECTIVES
1. Understand the formal process for paying
dividends and differentiate between the most
common types.
2. Explain individual preferences and issues
surrounding different dividend polices.
3.
Stocks and Stock Valuation
LEARNING OBJECTIVES of common
1. Explain the basic characteristics
stock.
2. Define the primary market and the secondary
market.
3. Calculate the value of a stock given a history
of dividend payments.
4. Explain the shortcomings
Inventory Management (2)
Continuous Review (Q) System
(a.k.a. Reorder Point System)
OBA 335
1
Complicating factor 1:
Order lead time is nonzero
OBA 335
2
Under Constant Demand Rate & Constant
Lead Time
Inventory
Demand rate
= d (units/day)
Q
Reorder
Point
Economic Order Quantity (EOQ)
Model
Managing Cycle Inventory
OBA 335
1
Activity: inventory management game
Make your decisions
Visualized the result inventory dynamics graph
OBA 335
2
Basic inventory dynamics in EOQ model
Cycle Inventory
(# units)
Slope
Symbol
BZC
KNX
NKTR
DMLP
CIEN
LNCE
TPL
SCLN
PATK
BIOYF
Exchange Company Name
QTY
US Breeze-Eastern Corporation3600
US Knight Transportation Inc.1950
US
Nektar Therapeutics 5375
US Dorchester Minerals, L.P. 3250
US
CIENA Corp
2620
US
Snyder's - Lance Inc.
University of Oregon Jean Falconer
Department of Economics Fall 2015
November 12, 2015 Answer Key
Second Midterm Exam
EC470: Monetary Policy
Instructions:
Please clear your desk of everything except for a pen or pencil and non-programmable cal—
culator. W
Mutual Assessment
Name
(I) Team Member Ratings
Answer each of these items for all team members (including yourself).
(1) How familiar are you with each team member's contribution?
You should be very familiar with your own contributions!
Team-mate: Myself
Date
Username
GGroup3
11/13/2015
First Name
Jing
Last Name
Yang
Initial Value
$0.00
Value
$528,487.41
ProfitLong
$25,161.24
ProfitShort BuyingPower Cash Balance
CashSum
$0.00
$718.22
$718.22 ($499,413.55)
PctReturn
SharpeRatio
0.05697482 1.4023829833
Accr
Deb Bauer
Finance 380 online
Fall 2015
Stock Trak Project part 1
This is a Stock Trak trading simulation team assignment. You will be assigned to a
team of four people (in most cases). Individual projects not accepted except in
unavoidable circumstances o
Date
Username
GGroup3
11/12/2015
First Name
Jing
Last Name
Yang
Initial Value
$0.00
Value
$518,593.79
ProfitLong
$15,267.68
ProfitShort BuyingPower Cash Balance
CashSum
$0.00
$718.16
$718.16 ($499,413.55)
PctReturn
SharpeRatio
0.03718758 4.3135891551
Accr
Deb Bauer
Finance 380 online
Stock Trak Deliverable 3
This is the last part to the Stock Trak trading simulation team assignment. Thus, only one
assignment per team should be submitted electronically on Canvas under the project
module. You should also eac
The Time Value of Money
(Part 1)
LEARNING OBJECTIVES
1. Calculate future values and
understand compounding.
2. Calculate present values and
understand discounting.
3. Calculate implied interest rates and
waiting time from the time value of
money equation.
Bonds and Bond Valuation
LEARNING OBJECTIVES
1. Understand basic bond terminology and apply
the time value of money equation in
pricing
bonds.
2.Understand the difference between annual
and semiannual bonds and note the key
features of zero-coupon bonds.
Problems and Solutions
Chapter 10
3. Find the operating cash flow for the year for Spacely Sprockets if they had sales
revenue of $300,000,000, cost of goods sold of $140,000,000, sales and
administrative costs of $40,000,000, depreciation expense of $65,
Chapter 7
Problems and Solutions
1. Murphy Motors, Inc. has just set the company dividend policy at $0.50 per year.
The company plans on being in business forever. What is the price of this stock if
a. An investor wants a 5% return?
b. An investor wants a
Problems and Solutions
Chapter 9
1. Payback Period Given the cash flows of the four projects, A, B, C, and D,
and using the Payback Period decision model, which projects do you accept
and which projects do you reject with a three year cut-off period for
r