ActSc 371: Corporate Finance One
Assignment Two
1.Genco Inc. is an olive oil importer. Shares of similar risk to those of Genco have an
expected return in the market of 25%. Genco has earnings per sha
ACTSC 331 Test 1  Winter 2010
Time: 90 minutes
Aids: calculator
1. For a 3year select and ultimate table you are given:
t
1
2
3
4
0.9999 0.9997 0.9994 0.9989
t p[20]
[4] a) Determine the following v
ACTSC 331  Fall 2012  Assignment 2 SOLUTIONS
1. A contract issued to a life age x pays a sum insured of 10,000 immediately on death within
n years, and pays 20,000 on survival to n years. Level prem
ACTSC 331  Life contingencies 1
Exercises (Chapter 7)
1. A fully continuous 20year payment, 30year term insurance of $2000 is issued to (35). We assume that
the force of interest of 6%, and the for
ACTSC 331  Life Contingencies I
Test 1
1. (18 marks) Consider a special fully discrete whole life insurance with:
death benet payable at the end of the year of death: bK +1 = 400 e0:02(K +1) ,
premiu
SOLUTIONS TO MIDTERM TEST ACTSC 431/831, FALL 2008 1. (a) Let Y L be the per loss r.v. for the policy. Then
0, X 20,
X 20; 20 < X 100;
YL =
80 + 0.5(X 100), 100 < X 120; 90, X > 120.
Thus, the mean
ACTSC 371 Corporate Finance 1
Instructor: Brent Matheson
Date: April 13, 2012
Time: 12:30 pm to 3:00 p.m.
Duration: 2.5 hours
Number of Pages: 19 including cover page, blank page, formula sheet and fi
Review Notes for Loss Models 1  ACTSC 431/831, Fall 2008 Part 1 Random Variables and Distributional Quantities
1. The distribution function (df ) or cumulative distribution function (cdf ) and surviv
ACTSCI 331  Life Contingencies I Exercises (Chapter 7)
1. A fully continuous 20year payment, 30year term insurance of 2000 is issued to (35). We assume that the force of interest is 6% and the forc
Review Notes ACTSC 331, FALL 2011
Part 1 Policy Values/Benet Reserves (Discrete Basis)
1. (Prospective/future) loss function or future loss random variable: A life insurance policy is issued to a life
ACTSC 331 Fall 2012 Assignment 4 SOLUTIONS
1. The gure below shows a shortterm model of employment/unemployment (so mortality
is ignored).
01 t
x+

Employed 0
Unemployed 1
10 t
x+
Assume that both t
ACTSC 331 Fall 2012 Assignment 4
due Friday Nov 9 at the beginning of class
1. The gure below shows a shortterm model of employment/unemployment (so mortality
is ignored).
01 t
x+

Employed 0
Unempl
ActSc 371: Corporate Finance One
Assignment Four
Due December 3, at end of office hours
1. A stock has current price 100. Each year, the stock either has a return of 20%, or of
20%. The riskfree int
ACTSC 331 Fall 2012 Assignment 3 SOLUTIONS
1. An insurer issues a 20 year level term insurance to a life aged exactly 60. The single
premium is paid at contract inception. The benet is 1.
(a) Suppose
ACTSC 331 Fall 2012 Assignment 3
due Friday Oct 26 at the beginning of class
1. An insurer issues a 20 year level term insurance to a life aged exactly 60. The single
premium is paid at contract incep
ActSc 371: Corporate Finance One
Assignment One
1. Consider the financial statements given below.
a) Determine the corporations cash flow.
b) Decompose the cash flow into the cash flow to shareholders
ActSc 371: Corporate Finance One
Assignment One
Due October 10, at end of office hours
1. Consider the financial statements given below.
a) Determine the corporations cash flow.
b) Decompose the cash
Proof of Sustainable Growth Formula
Let S0 = Old Sales, S1 = New Sales, S = Change in sales,
p = prot margin, d = dividend payout ratio and T = asset to
sales ratio.
Proof of Sustainable Growth Formul
ACTUARIAL SCIENCE 371: CORPORATE FINANCE 1
Sample Final Exam
This is a sample final examination questions to give students an idea of how to prepare
the real final examination. Actual final exam may h
Derivation of the Formula for Sustainable
Growth Rate
I use the notational convention
X = NewX OldX
(1)
Denoting EF N = External Funds Needed, we have:
EF N = New Assets (New Debt + New Equity)
(2)
An
ActSc 371: Corporate Finance One
Assignment Two
Due October 31, at end of office hours
1.Genco Inc. is an olive oil importer. Shares of similar risk to those of Genco have an
expected return in the ma
ACTSCI 331  Life Contingencies I Solutions (Chapter 7)
1. (a) The benet premium is 2000
20 P
A1
35: 30j
which is obtained by A1
35: 30j
2000
20 P
A1
35: 30j
= 2000 =
2000 (0:06873) 11:39534 = 12:063
ActSc 371: Corporate Finance One
Assignment Three Answers
1. A company has a nominal discounting rate of 20%. By law it has to buy a machine to
sterilize the instruments used in its manufacturing proc
ActSc 371: Corporate Finance One
Assignment Three
Due November 19, at end of office hours
1. A company has a nominal discounting rate of 20%. By law it has to buy a machine to
sterilize the instrument
ActSc 371: Corporate Finance One
Assignment Three
Due November 19, at end of office hours
1. A company has a nominal discounting rate of 20%. By law it has to buy a machine to
sterilize the instrument
ACTSC 331  Fall 2012  Assignment 2
Due Friday Oct 12 at start of class
1. A contract issued to a life age x pays a sum insured of 10,000 immediately on death within
n years, and pays 20,000 on survi
ACTSC 331  Fall 2012  Assignment 1 SOLUTIONS
1. Show that the distribution of Tx tTx > t is equal to the distribution of Tx+t . (This
is what we apply when we write Lt in terms of Tx+t instead of a