FIN 3312
Review for 2nd Exam
Risk and Return: From Chapters 10 and 11
Computing Returns (percentages)
o Any of these equations work; theyre all the same:
Amt Received Amt Invested
R=
Amt Invested
End
FIN 3312
Spring 2017
Quiz 9
10 Points
1. A stock just paid a dividend of $1.80 that is expected to grow at 20% for the next two years and then a
constant 4.5% afterward. If the stock has a required re
FIN 3312
Spring 2017
Quiz 3
10 Points
1. A stock has a 20% probability of losing 10% next year, a 30% chance of earning 6%, a 30% chance of
earning 16% and a 20% chance of earning 42%. Given that prob
FIN 3312
Spring 2017
Quiz 5
10 Points
1. If you deposit $2,000 today at 7% compounded annually, how much will you have in 25 years?
2000 PV
7
I
25
N
FV = $10,854.87
2. How many years will it take $10,
FIN 3312
Spring 2017
Quiz 4
10 Points
1. What is the required return for a stock with a beta of 0.8 if the risk-free rate is 2% and the expected
return on the market is 9%?
R = .02 + (.09 .02)*.8 = .0
Bond Practice III
#1
1000
4.50%
8
850
a)
b)
#2
a)
b)
1000
22.5
16
-850
Par
Coupon-Semi-annual
Years
Price
FV
PMT
N
PV
I/Y =
3.49%
x2
6.98%
PV =
$901.93
6.50% YTM
1000
22.5
12
3.25%
FV
PMT
N
I/Y
1000
9
CIS 3374 Exam 1 Study Guide
Format: Multiple choice questions (~ 60%), short answer questions (~10%), draw UML
diagrams (~30%)
Ch 1
Describe the purpose of systems analysis and design in the developm
RATIO ANALYSIS SPREADSHEET
BALANCE SHEET RATIOS: Stability (Staying Power)
1
Current
Current Assets
Current Liabilities
2
Quick
3
Cash + Accts. Rec.
Current Liabilities
Debt-to-Worth
Total Liabilities
Ch. 6
Bonds
Just Applying Time Value of Money
(at least for pricing)
Bonds = Debt Securities
Bonds are loans with (potentially) many lenders
Issuer = borrower
Investor = lender
Standardized instrument
State of
Economy
Recession
Normal
Boom
Double bo
Prob. Og State
of Economy
STOCK A STOCK B
0.1
-0.05
-0.09
0.4
0.08
0.11
0.4
0.15
0.13
0.1
0.33
0.4
Add
SQRT
E(Ri)
STOCK A STOCK B
-0.005
-0.009
0.032
0
FIN 3312
Spring 2017
Quiz 8
1.
A stock with a beta of 1.4 will pay a dividend of $2 next year that is expected to grow at 7%. If the risk-free rate is 2% and
the market risk premium is 5.5%, what is t
FIN 3312
More Bond Practice
1. You find a $1,000 par bond with a 4.5% semi-annual coupon and 8 years to maturity trading at a price of
$850.
a. What is the yield to maturity of the bond?
b. If, after
Quiz 1
10 Points
1. Boomer, Inc. had sales of $5 million with interest expense of $500,000 and depreciation of $850,000.
Their cost of goods sold run 35% of sales and your tax rate is 40%. If they als
Use the following information regarding Krueger Industrial Smoothing to answer the next 3 questions:
Sales = 700,000 Net Income 50,000 Total Asset Turnover = 1.25 Debt to Assets = 40%
Inventory Turnov
they sell equity or repurchase stock if they paid no dividends?
C F Assets Imago
8) $3. If a rm has cash ow from assets of $100, 000 and cash ow to creditors of $1 80,000, did
Sold equity I
. Repurcha
Use the following income statement and balance sheet to answer the next 4 questions
29.
A30.
D31.
02.
1X33.
2005 2006 2005
Sales 500,000 Current Assets 55,000 45,000
Costs 220,000 Net F. Assets 17
C/l. . The ultimate goal for a manager in a rm to pursue should be to?
a. maximize the prot of the rm
b. maximize the cash ows of the rm
Q maximize the value of the rm
d. none of the above
A]. In word
If a rm has a current ratio greater than one, which of the following will cause that ratio to
increase? Cuuud' L90 >\
a. Collect an accounts receivable
b. Use cash to pay off a long-term debt
' . Sell
Chapter 3: Working With Financial Statements Topics
Why Work With Financial Statements?
Problems with Financial Statement Analysis.
Calculating Ratios and Analyzing with Ratios.
Why do we use Ratios t
FIN 3312
Summer 2015
Quiz 3
10 Points
Name
1. Use the following probability distribution to answer some questions about stocks A and B:
Prob
0.2
0.4
0.3
0.1
A
-2%
11%
13%
15%
B
-11%
6%
16%
40%
a. Comp
FIN 3312
Spring 2017
Quiz 2
10 Points
1. Dunder-Mifflin had net income of $30,000, with interest expense of $75,000 and a tax rate of 40%. If
their cash coverage ratio was 5, what was their depreciati
FIN 3312
Fall 2016
Review List of Material for 4th Exam
Chapter 6Bonds
o What are bonds?
o
Bond Characteristics
o Features
o Indenture: Purpose
o
Pricing Bonds
o Annual/Semi-annual Coupons
o Discount/
FIN 3312
Review List of Material for 5th Exam
Chapter 7Stocks
Shareholder Rights
Stock Valuation
o Price = PV of future Dividends, why?
o Constant Dividend
Pricing-Perpetuity
o Constant Dividend Gr
FIN 3312
Review for 3rd Exam
Time Value of Money: Chapters 4 and 5
PV, FV, Annuities
Non-annual periods
Finding I/Y and N
APR vs. EAR
Effects on PV and FV of changing rates, time, etc.
Ordinary vs. An
Roger G. Ibbotson & Rex Sinquefield
Year Invested
Year Withdrawn
Years Invested
Geomean formula 1
(End/Beg)^(1/Periods)-1
$ Invested in
$ Withdrawn in
1925
2008
Geometric Mean
$1.00
$9,548.94
$1.00
$2
FIN 3312
Bond Practice Problems
1.
A $1,000 par bond pays an annual coupon of 5% and has 12 years to maturity. Compute its price if its required return is:
a. 5%
1000 FV, 50 PMT, 12 N, 5 I/Y: PV = 1,0