FINANCE 311
PROBLEM SET NUMBER 3
Due: October 15, 2014
Please Show Calculator Inputs
1.
Grandma left you a T-Bill (Treasury Bill) in her will. She paid $87,500 in cash for the TBill one year ago. The Face Value of the T-Bill is $100,000. What is the retur
FINANCE 311
PROBLEM SET NUMBER 3
1.
Grandma left you a T-Bill (Treasury Bill) in her will. She paid $87,500 in cash for the TBill one year ago. The Face Value of the T-Bill is $100,000. What is the return on the T-Bill?
n=1
FV = 100,000
PV = 87,500
i = 14
The Following Topics will be on the Final Exam:
1.
Given Financial Statements identify/calculate non-cash expenses
2.
Calculate cash flow from assets
3.
Know what the DuPont Model is about
4.
Calculate change in Net Working Capital
5.
Determine the price
Formulas
These are the formulas you will receive with your exam. If there are other numerical
calculations in course pack examples, you will need to remember what goes into those
calculations.
Beginning ALL + provision for loan losses - charge offs of wor
Bond Issues
A bond is a form of Interest Only borrowing. The borrower receives the principal amount borrowed
immediately, and pays only the coupon rate for the life of the instrument. At the end or maturity the
principal amount is re-paid. Thus, during th
1
FI311Fall2014
ProblemSet1
1. Matchtheitemsfromthelistwiththetypeofbusinessorganizationthatitapplies
to.Somemaybeusedonce,morethanonce,ornotatall.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
LimitedLiability
Couldsufferdoubletaxation
UnlimitedLiability
Requiresthel
FI 311 Spring 2013
Problem Set #3 Chapters 10 to 13
1. Nathan is considering a project that requires an initial investment of $20,000. It is depreciable
over four years using straight-line depreciation. The discount rate is 10%. Nathans tax bracket is
40%
FINANCE 311
PROBLEM SET NUMBER 2
Due: October 1, 2014
Please Show Calculator Inputs
1.
Aunt Bucks just died and left you $10,000. You decide that you do not need the money
for 3 years until you student loan comes due. You have the ability to deposit the m
1. Shareholder A sold shares of Maplewood Cabinets stock to Shareholder B. The stock is
listed on the NYSE. This trade occurred in which one of the following?
secondary, auction market
secondary, dealer market
primary, dealer market
secondary, OTC market
FI311 Section 3 Sample Exam 1 Answers and Solutions
Use the following information for questions 1-4
Shaky Shake,
Inc.
Sales
Cost of Goods
Sold
Depreciation
Interest paid
Dividends
Current Assets
Net Fixed
Assets
Current
liabilities
Long term debt
Tax rate
Laboratory: Reduce Reuse Recycle
Complete this lab and submit it to the Digital Drop Box.
For part one of this lab, use the following website:
www.epa.gov/recyclecity/
1) The United Kingdom alone disposes of over 40 million car, van, and truck
tires annua
FI 311 Spring 2013
Problem Set #1 Chapters 1 to 5
1. Bre Price will receive a four year annuity payment of $500 per year, with payments beginning
in year 6. Based on historical data, she assumes a 10% discount rate.
A. What is the value of the annuity in
Use the Hilltop Industries Income Statement and Balance Sheets for Questions 1 & 2
Hilltop Industries
2011 Income Statement
($ in millions)
Net Sales
Less: Cost of goods sold
Less: Depreciation
EBIT
Less: Interest paid
Taxable Income
Less: Taxes
Net incom
Mengxiao Zhao
A41855310
06/20/11
1. Is it possible to pursue goals of social responsibility (ethics) and shareholder wealth
maximization at the same time? Explain your response (use an example to support
your position, if possible).
Corporate social respo
FI 311 Connect homework #1
Which one of the following terms is defined as the management of a firm's long-term
investments?
working capital management
financial allocation
capital structure
agency cost analysis
capital budgeting
Which one of the following
FI 311
Problem Set 3, Question #10
Use Microsoft Excel to answer parts A through D below. Write your final answers on this sheet, and print
off two copies of your excel spreadsheet (one showing the numbers, and one showing the formulas) to
submit as well.
NAME:
SIGNATURE:
STUDENT NUMBER:
Michigan State University
FI 311
Fall 2015
Professor Ralph Carmichael
EXAM 3
INSTRUCTIONS:
Make sure you write your name, student number and section number on your exam.
Make sure to mark your answer on the exam clearly.
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1. Elements of a Bond
BOND: the government or corporation issues or sells debt securities
(bonds) when it wants to borrow money from the public
- normally an interest-only loan
- COUPON: stated interest payment made on a bond; constant
and paid every year
Cost of Equity
Company has beta of 1.2, market risk premium is 7%, and
return on T-bills is 4%. What is the cost of equity?
Cost of Equity = Risk Free Rate + (Beta * Risk Premium)
0.04 + (1.2 * 0.07) = 12.40%
Beta & Systematic Risk
Given four assets wit