QUIZ
Beginning three months from now, you want to be able to withdraw $1,500 each quarter from
your bank account to cover college expenses over the next 4 years. The account pays 1.25
percent interest per quarter. How much do you need to have in your acco
Date: 17th November 2011
MIDDLE EAST TECHNICAL UNIVERSITY
BUS 281 Principles of Finance
Mid-Term Exam
Name & Surname:
Student Number:.
1) What are the three types of financial management decisions and what questions are they
designed to answer? (10 points
QUIZ 1
Date: 27th October 2011
MIDDLE EAST TECHNICAL UNIVERSITY
BUS 281 Principles of Finance
GOOD LUCK
Name & Surname:
Student Number:.
1) What is the goal of financial management?
1.1. Possible Goals
Profit Maximization this is an imprecise goal. Do we
101. Details Corp. has a book net worth of $8,150. Long-term debt is $1,650. Net
working capital, other than cash, is $2,150. Fixed assets are $2,000. How much cash does
the company have?
A. $4,250
B. $4,550
C. $5,150
D. $5,650
E. $6,750
Cash = $8,150 + $
Income Statement
View: Annual Data | Quarterly Data
Period Ending
All numbers in thousands
Sep 30, 2010
Sep 30, 2009
Dec 31, 2008
Dec 31, 2007
Total Revenue
230,000
274,000
223,000
144,000
Cost of Revenue
220,000
234,000
185,000
120,000
Gross Profit
10,00
HOMEWORK 3
1. Suppose you are looking at the following possible cash flows: Year 1 CF = $100;
Years 2 and 3 CFs = $200; Years 4 and 5 CFs = $300. The required discount rate is
7%.
2. What is the value of the cash flows at year 5?
3. What is the value of t
HOMEWORK 2
1. The most recent financial statements for Moose Tours, Inc. follow. Sales for 2009 are
projected to grow by 16 percent. Interest expense will remain constant; the tax rate and
dividend payout rate will also remain constant. Costs, other expen
Below is a list of possible reasons it may be good or bad that each ratio is higher or lower than
the industry. Note that the list is not exhaustive, but merely one possible explanation for each
ratio.
Ratio
Current ratio
Quick ratio
Cash ratio
Total asse
EXAMPLES FOR DISCOUNTED CASH FLOW VALUATION
1) Assume the total cost of a college education will be $300,000 when your child enters
college in 16 years. You presently have $75,561 to invest. What rate of interest must you
earn on your investment to cover
94. Cool Shades, Inc. (CSI) manufactures biotech sunglasses. The variable materials cost is
$1.69 per unit, and the variable labor cost is $3.04 per unit. Suppose the firm incurs fixed
costs of $750,000 during a year in which total production is 450,000 u