Fina 3000 Principles of Finance
Homework 1
1. Construct a balance sheet for Sophie's Sofas given the following data. What is shareholders' equity?
Cash balances = $10,000
Inventory of sofas = $200,000
1.
Future Values. In 1880 five aboriginal trackers were each promised the equivalent of 100 Australian dollars for helping to
capture the notorious outlaw Ned Kelley. In 1993 the granddaughters of two
1.
2.
3.
4.
5.
6.
7.
Present Values. Compute the present value of a $100 cash flow for the following combinations of discount rates and times:
1. r = 8%, t = 10 years.
2. r = 8%, t = 20 years.
3. r =
Homework 6 Solutions
1.
Yea
r
0
1
2
3
4
IRR/NPV. If the opportunity cost of capital is 11%, which of these projects is worth pursuing?
Project Project
A
B
$200
$200
80
100
80
100
80
100
80
NPVA = $200
1.
Dividend Yield. Favored stock will pay a dividend this year of $2.40 per share. Its dividend yield is 8%. At what
price is the
stock selling?
Dividend yield = dividend/price = DIV 1/P0
0.08 = 2.40/
1.
Bond Yields. A 30-year Treasury bond is issued with face value of $1,000, paying interest of $60 per
yields increase shortly after the T-bond is issued, what happens to the bond's
1. coupon rate? (
Time Value of Money:
FV = PV(1 +1)"
V: FV
(1+i)
Perpetuity:
P VA = PM
P?-
I - 8. Using the attached nancial statements for DDR Enterprises to calculate the
following ratios: (15 points)
FINA3009 - RISK ANALYS¥S
Risk in nancial decision making can be thought of as uncertainty as to the outcomes
of an event like an investment.
A Probability Distribution is a list of alt possible outc
Quiz 4
FINA3000, March 6, 2013
Name.
16 points
1.
5:20 points, others
A credit card company offers Adam 18.25 percent APR, compounded monthly. What is the effective annual
interest rate (percent) Adam
Here are simplified financial statements of Phone Corporation from a recent year:
Balance Sheet ( all figures in million dollars)
201
2
10
201
3
23
12
8
Inventories
20
24
Current Assets
42
55
Net fixe
Quiz 4
FINA3000, March 5, 2014
Name.
points
1.
5:20 points, others 16
What is the expected real rate of interest for an account that offers a 15 % nominal rate of return when the rate of
inflation
is
Quiz 5
FINA3000, March 26, 2014
Name.
15 points
1-5:5 points, 6-10:
1.
Which of the following is not one of the major bond rating companies?
A.
Moodys
B.
Merrill Lynch
C.
Fitch
D.
Standard and Poors
2
Quiz 5
FINA3000, March 26, 2014
Name.
15 points
1.
6.5
1-5:5 points, 6-10:
What is the price of a 9-year bond if the coupon rate of the bond is 5.4 percent and yield to maturity of the bond is
percent
Quiz 6
FINA3000
April 16, 2014
Name
1.
Grading: 1-4:19, 5-10: 4 points each.
The cash flow is estimated for a project to be 80Q 60,000. The investment required for the project is $850,000. The
project
Fina3000 Principles of Finance,
February 5, 2014,
Quiz 2
Name.
choice questions: 5 points
1)
Grading: 1: 40 points, multiple
Use the following information find the cash flow from operations in 2013
De
For the questions please refer to the book.
1 (Problem 4.1).
a.
Long-term debt ratio
b.
Total debt ratio
c.
Times interest earned
d.
Cash coverage ratio
e.
Current ratio
f.
Quick ratio
g.
Operating pr
Fina 3000
Quiz 1B
1. An example of how financial intermediaries can assist in shifting an individual's
consumption forward in time is:
A. providing a line of credit.
B. opening a passbook account.
C.
Finance- Study of investing
Investing- Committing recourses in hopes of earning profits in the future
Goal of the firm- Maximize stockholder equity, maximize stock price
Three elements of financial de