Problem Set 5
(4 points each)
1. Tammy Monahan is considering the purchase of a home entertainment center. The
product attributes and weights she plans to consider are:
portability
.1
sound projection
.6
warranty
.3
Tammy rated the brands as follows:
port
Problem Set 6
(4 points each #s 1 and 4; 3 points each #s 2, 3, 5, 6)
1. For each of the following situations, what amount would the insurance company
pay?
a. Wind damage of $835; the insured has $500 deductible.
Solution: $335 = $835 - $500
b. Theft of a
Week 2
1. Question : (TOO 3) Examples 01 include automobile and installment loans for purchasing furniture or appliances,
Student Answer: 0 a line of credit
0 a credit card loan
0 open-end credit
4 closed-end credit
0 convenience credit
Problem Set 1
(2 points each)
(Note: Some of these problems require the use of the time value of money tables in the
Chapter 1 Appendix).
1. Ben Collins plans to buy a house for $65,000. If that real estate property is
expected to increase in value 5 perc
Week 1
Grade Detdils . All Questions
1. Question : (T C0 1) When a person faces a tradeoff and must give up something by making a choice.
this is referred to as
SIUdem Answer: 0 taking out a loan,
I opportunity cost.
0 the evaluation of alternatives.
0 a
Chapter 12, #3, 5, 6, 15
3. Calculating Cost of Equity. Stock in CDB Industries has a beta of .90. The market
risk premium is 7 percent, and T-bills are currently yielding 3.5 percent. CDBs most
recent dividend was $1.80 per share, and dividends are expec
Problem Set 4
(3 points each #s 1-2; 3.5 points each #s 3-6)
1. Determining Profit or Loss from an Investment. Three years ago, you purchased
150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for
$103 a share. For this problem, ignor
Week 2
1. Question :
Student Answer:
Instructor Explanation:
Polnts Wed:
Comments:
2. Question :
Student Answer:
Instructor Explanation:
(T CO 3) Examples of Include automobile and Installment loans for purchasing furniture or appliances.
0 a llne of cred
6. Calculating Net Float. Each business day, on average, a company writes checks totaling $19,500 to
pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is
receiving payments from its customers each day, in the f
Problem Set 3
1. Louise McIntyres monthly gross income is $2,000. Her employer withholds
$400 in federal, state, and local income taxes and $160 in Social Security taxes
per month. Louise contributes $80 per month for her IRA. Her monthly credit
payments
Problem Set 2
1. Thomas Franklin arrived at the following tax information:
Gross salary, $46,660
Interest earnings, $225
Dividend income, $80
One personal exemption, $3,400
Itemized deductions, $7,820
Adjustments to income, $1,150
What amount would Thomas
Problem Set 1
(Note: Some of these problems require the use of the time value of money tables in
the Chapter 1 Appendix).
1. Ben Collins plans to buy a house for $65,000. If that real estate property is
expected to increase in value 5 percent each year, w
Problem Set 3
(4 points each)
1. Louise McIntyres monthly gross income is $2,000. Her employer withholds
$400 in federal, state, and local income taxes and $160 in Social Security taxes
per month. Louise contributes $80 per month for her IRA. Her monthly
8.
Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of
$2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, or
OCF?
Sales
- Cost
- Depreciation
EBIT
- Interest
A. 52/60
B - #1. 15/15
C - #2. 15/15
81/90
Cash Flows and Financial Statements at Sunset Boards, INC.
1. An Income Statement for 2013 and 2014
SUNSET BOARDS
Income Statements as of December 31, 2013 and 2014
2013
2014
Net Sales
333,426
406,427
Cost of Goo
3.
Calculating Payback. Global Toys Inc., imposes a payback cutoff of three years for its
international investment projects. If the company has the following two projects available, should it
accept either of them?
Project A:
Initial Investment = ($55,000
Problem Set 2
(4 points each)
1. Thomas Franklin arrived at the following tax information:
Gross salary, $46,660
Interest earnings, $225
Dividend income, $80
One personal exemption, $3,400
Itemized deductions, $7,820
Adjustments to income, $1,150
What amo
Problem Set 4
1. Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock
for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions
that would be charged to buy and
Question :
Student Answer:
Instructor Explanation:
fl'CO 1) When a person faces a trade-off and must give up something by making a choice,
this is referred to as
0 taking out a loan.
n! @ opportunity cost.
0 the evaluation of alternatives.
0 a decisionmak
Week 1 Assignment. Chapter 2: 8, 14, and 19
2.8. What is the OCF? (5/5)
Income Statement
Net income
$13.013
OCF = $17,283
2.14
a. What is the OCF? (20/20)
Income Statement
Net income
$34,580
OCF = $54,880
b. What is the cash flow to creditors? (Show work)
BUSN379 Final Exam Study Guide
6. Exam Questions
There are 10 randomly selected essay / problem questions each worth 25 points for a
total of 250 points.
The final exam covers all course TCOs and Weeks 1-7
The final exam contains multiple pages, which can
BUSN379
Final Exam Study Guide
1. Preparing Income Statement
Chapter 2 Problem #2
TheincomestatementstartswithrevenuesandsubtractscoststoarriveatEBIT.Wethensubtract
outinteresttogettaxableincome,andthensubtracttaxestoarriveatnetincome.Doingso,weget:
Incom
Case 2 Assignment
By: Kaleb Merck
D40417289
BUSN379
Professor Kikwebati
* Calculations performed in Excel file and amortization table completed in Excel as well *
1. What are the monthly payments for a 30-year traditional mortgage? What are the
payments f
S&S AIR LOAN AMORTIZATION TABLE
By: Kaleb Merck (D40417289)
LOAN VALUES
LOAN SUMMARY
Loan amount
Annual interest rate
Loan period in years
Number of payments per year
Start date of loan
Scheduled payment
Scheduled number of payments
Actual number of payme