A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
B
C
D
E
F
I
04 Chapter model
COMPARATIVE SIZE BALANCE SHEETS - Allied Food Products - December 31
(in millions of dollars)
2013
Assets
Cash and equivalents
Accounts receivable
Inventories
Total current assets
Net plant a
9. Question :
_ lies within the operations function of the
organization and involves determining if process choice decisions
and capabilities are consistent with infrastructure decisions and
capabilities.
Student Answer:
Decision Loop 1
Decision Loop 2
De
Chapter12
CostofCapital
CHAPTER12
COSTOFCAPITAL
SOLUTIONSTOPROBLEMS:
1. Calculate the after-tax cost of a $25 million debt issue that Pullman
Manufacturing Corp is planning to place privately with a large insurance
company. This long-term issue will yield
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Question
10/24/2016
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10/16/2016
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34 min , 11 sees
10/24/2016
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10/23/2016
37 min , 32 sees
0.67 / 1.00 (67%)
Date T
10/24/2016
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16.80 / 25 (67.2%)
Ch. 2 Mathematical and statistical foundations
The ultimate objective of econometrics is usually to build a model, which maybe thought of as a
simplified version of the true relationship between two or more variables that can be described as
a function. A
Ch. 3 Book Notes - be able to use the hypothesis tests (test of significance and confidence interval)
3.1 What is a regression model?
Regression in concerned with describing and evaluating the relationship between a given variable
and one or more other v
Ch. 1
What is econometrics?
Measurement in economics
Financial econometrics = The application of statistical techniques to problems in finance
Useful for testing theories in finance, determining asset prices or returns, testing hypotheses
concerning th
Ch. 4 Book Notes (be able to perform a f-test)
4.1 Generalizing the simple model to multiple linear regression
Yt = a + Bxt + ut; where there are variables for a set of k-1 explanatory variables which are thought
to influence y and the coefficient estima
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Question Type:
True/False
Multiple Choic
NAME: Mikki McGuire Blunt
FIN504 - Financial Management
DATE: 9/25/2016
Chapter 5 - Integrated Case Problem
Time Value of Money
Background Information
$
Present Value Fixed Income
Average Expected Inflation Rate
Average Return on Common Stocks
Average Ret
Chapter 4Exchange Rate Determination
1. The value of the Australian dollar (A$) today is $0.73. Yesterday, the value of the Australian dollar was
$0.69. The Australian dollar _ by _%.
a. depreciated; 5.80
b. depreciated; 4.00
c. appreciated; 5.80
d. appre
20. Question :
Student Answer:
Which mutually exclusive project would you select, if both are
priced at $2000 and your discount rate is 8%: Project A with
three annual cash flows of $1,500; or project B, with 3 years of
zero cash flow followed by 3 years
16. Question :
Student Answer:
Which of the following changes will decrease the NPV of a
project?
A increase in the discount rate
A increase in the size of the cash inflows
An increase in the initial cost of the project
A increase in the number of cash in
14. Question :
Student Answer:
A furniture store is offering free credit on purchases over $1,000.
You observe that a big-screen television can be purchased for
nothing down and $4,000 due in one year. The store next door
offers an identical television fo
11. Question :
Student Answer:
What will be the monthly payments on a home mortgage of
$75,000 at 12% interest, to be paid over 30 years?
771.46
775.90
1028.61
1034.53
Points Received:
Comments:
0 of 4
12. Question :
Student Answer:
With $1.5 million in an account expected to earn 8% annually
over the retiree's 30 years of life expectancy, what annual
annuity can be withdrawn, beginning at end of first year?
112,150
120,000
123,371
133,241
Points Receiv
17. Question :
Student Answer:
What is the variance of return of a three-stock portfolio (each
stock being equally weighted) that produced returns of 20%,
28%, and 30%?
16.67
18.67
25.41
24.93
Points Received:
Comments:
0 of 5
21. Question :
Student Answer:
What is the coupon rate of a bond which has a price of
$1100, Yield to Maturity of 14%, matures in 5 years and
makes semi-annual coupon payments?
7.7%
16.91%
8.42%
16.85%
14%
Points Received:
Comments:
0 of 5
9. Question :
Student Answer:
The value of common stock will likely decrease if:
the investment horizon decreases.
the growth rate of dividends increases.
the cost of equity increases.
dividends are not discounted to the present.
Points Received:
Comments
CORPORATE FINANCE
DR. GORMUS
Where does the Money come
from?
A= D + E
Characteristics of Long-Term
Debt
Information on Debt Financing
Activities
3
Characteristics of Long-Term
Debt
Advantages and Disadvantages of
Long-Term Debt Financing
Advantages
Its
CORPORATE FINANCE
DR. GORMUS
Stocks and Valuation
A=D+E
Assets equal debt plus equity
Borrowing from the Equity side is
essentially selling company stock.
Characteristics of Common
Stock
Advantages and Disadvantages of
Common Stock Financing
Advantages
F
CORPORATE FINANCE
DR. GORMUS
Maximizing Shareholder
Wealth as a Primary Goal
The most widely accepted objective of
the firm is to maximize shareholder
wealth
Shareholder
Wealth = Number of shares
outstanding Market price per share
Management should seek
FIN 571 Sample Exam Ch 8
_
1. Given a home country and a foreign country, purchasing power parity (PPP) suggests that:
a. a home currency will depreciate if the current home inflation rate exceeds the current
foreign interest rate.
b. a home currency will