ACTSC 371 Assignment #4
(due Tuesday July 28th at 3:00 p.m.)
1.
Joes Donut Shop is considering purchasing a donut making machine for $100,000.
Assume the following.
The machine will last 7 years, aft
University of Waterloo
Term Test #1
ACTSC 371 Corporate Finance 1
Instructor: Brent Matheson
Date: Friday June 8th, 2012
Time: 3:30 p.m.
Duration: 50 minutes
Number of Pages: 10 (including the cover p
Question
1
2
3
4
5
6
Total
Marks Available
8
8
8
5
3
7
39
1. ABC Corporations shares trade on the Toronto Stock Exchange for $11. Assume ABCs beta is 1.4, its ROE
is 15%, its retention ratio is 40%, t
ACTSC 371 Assignment #3
Due Friday March 16th at 3 pm in the drop boxes
Question 1: What is the monthly payment on a $100,000 mortgage with a 25 year amortization
if rates are 5% per year (assume semi
Question 1) No growth Div Disc Price
Question 2) Bond Price (t=0) 5 15% 33.33 1 mark Bond Price (t=1) What's left? $1,000.00 1 marks
Question 3) Profit Calc unit price Units Variable Fixed Profit Tax
CHAPTER 14
MANAGING BOND PORTFOLIOS
1. The percentage bond price change will be
Duration
7.194
y = 1.10 .005 = .0327 or a 3.27 percent decline.
1+y
2. Computation of duration:
a. YTM = 6%
(1)
(2)
Tim
ACTSC 371 Corporate Finance 1
Assignment 2 Due Date November 5, 2012 at 3:30 pm
Please submit your assignment in the DROP BOXES outside the math tutorial centre.
Question 1: The annual earnings of Ava
BKM CHAPTER 1: THE INVESTMENT ENVIRONMENT
1.
Financial engineering has been disparaged as nothing more than paper shuffling. Critics
argue that resources used for rearranging wealth (that is, bundling
ACTSC 371 Final Exam Information
The exam will cover the entire course. The exam questions will very similar to the
assignments, the midterm and the workbook questions. The workbook should be good
rev
Chapter 4: Financial Markets and Net Present Value: First Principles of Finance
4.1 $108,000 ($135,000 $85,000) (1.07) = $54,500 In order to consume $135,000 this year Jack will borrow $50,000 and pay
Chapter 23: Options and Corporate Finance: Basic Concepts
23.1a. Because the option will be exercised with certainty, the value of the call is the stock price minus the present value of the exercise p
ACTSC 371 Assignment #3
Due Monday November 19th at 3:30 pm in the drop boxes
Question 1: Why are options called derivatives?
Question 2: Look up the web site for the Montreal Exchange. What is the S&
Identity
CA
CL
CA
LTA
Eq
LTA
LTL
CA (contra)
Eq
CA
CL
Eq
Cash
A/P
A/R
Patents
Retained Earnings
Buildings and Equipment
Bonds Payable
Acc Depreciation
Preferred Stock
Inventory
Taxes Payable
Common St
Assignment #3 SOLUTION ACTSC 371 FALL 2014
1. a) stated YTM y* is the solution to f(y*)=900 where
f y
140
1
1 y
10
10
1000 1 y
y
Using
Interpolation
Method
y
16%
y*
17%
f(y)
903.3355
900
860.2419
y *
Chapter 2 Problems
1. Why are money market securities sometimes referred to as cash equivalents?
2. The investment manager of a corporate pension fund has purchased a Treasury bill with 182 days to
ma
Type A
ActSc 371 Midterm Test (Morning session) Aids: non-programmable Calculator This examination contains: Multiple Choice (MC) Morning session Grade: Last page is the formula sheet. Instruction: *
ACTSC 371 Fall 2014
Assignment 1 (due: Monday Sept. 29, 2014, 1pm)
Assignment must be submitted to the dropbox, which is located in front of MC 4065
by the due date. Late assignment will not be accept
ActSc 371 Fall 2014
Assignment 4
Due Date: 1pm November 24, Monday (dropbox)
1. You just invested in a security which pays $500 at year 5 and $1500 at year 15. Given further
that the current (annual e
Introduction Bond Valuation Stock valuation
Ch6. How to value bonds and stocks
JHT Kim
ActSc 371
October 2, 2009
1/42
Introduction Bond Valuation Stock valuation
Backgrounds
First principle in valuati
CHAPTER 14
BOND PRICES AND
YIELDS
1
BOND PRICES AND YIELDS
Bond Characteristics
Bond Pricing
Bond Yields
Bond Prices over Time
Default Risk and Bond Pricing
2
BOND CHARACTERISTICS
A bond is a security
ACTSC 371
Chapter 2 Financial Markets and Instruments
Debt: Money Market
The money market is comprised of very short term debt securities. The objective of money market investors is
to generate safe,
CHAPTER 16
EQUITY VALUATION MODELS
1. Theoretically, dividend discount models can be used to value the stock of rapidly
growing companies that do not currently pay dividends; in this scenario, we
woul
CHAPTER 5
CAPITAL ALLOCATION TO RISKY ASSETS
1. a. The expected cash flow is (.5 $70,000) + (.5 200,000) = $135,000.
With a risk premium of 8 percent over the risk-free rate of 6 percent, the
required
ACTSC 37:
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due October 26, 2016
Homework 2
1. Suppose that random variables X i R p , i = 1, 2, . . .n each have mean i R p and variance
2i R pp and are uncorrelated that is, Cov X i , X j = 0 for i 6= j. Show t