York University
AP Econ 4410 Sections M, N Midterm Examination
February, 2015
Instructions. Write your name and student number on the front of your answers book. Answer
four out of seven problems. Each problem has the same weight. You cannot use any notes
York University
Economics 4410, Winter 2014
Final Exam Practice Problems
1.When a security is added to a portfolio the appropriate return and risk contributions are:
A) the expected return of the asset and its standard deviation.
B) the most probable retu
York University
Economics 4410, Winter 2014
Final Exam Practice Problems with Answers
1.When a security is added to a portfolio the appropriate return and risk contributions are:
A) the expected return of the asset and its standard deviation.
B) the most
AP ECON 4410 Session 9:
Topic: Valuation and Capital Budgeting for the Levered Firm
Readings: Chapter 18
Announcement:
Note that there will be some updates for the chapters covered, but there will be no flexibility of
your midterm schedule.
Ch 18: Valuati
Age of the ship
Event Year
Year
Days in maintenance
Daily Hire Rate
Days hired
Revenue
Operating expenses
Depreciation
Annual Operating expenses
Special Survey Costs
EBIT
With 35%Tax
Net Income
Plus:Depreciation
Less:Capital Expenditures
Less:NWC
Cash out
ECON 4410 Lecture Notes
Chapter 7: NPV and Other Investment Rules
Firms Balance sheet
o Assets (what the firm owns)
in what long-lived assets should the firm invest?
short term, most liquid assets
Cash, a/r
Long term
intangible (good will/education)
tang
AP ECON 4410A Midterm Exam 1 F2016
Department of Economics
Instructor: Dr. David Lee
York University
Name
ID
Instructions:
Clearly identify your name and ID in both, the question sheet and exam book, and submit both.
Show your answers only in the exam bo
AP ECON 4410A Midterm Exam 2 F2016
Department of Economics
Instructor: Dr. David Lee
York University
Name
ID
Instructions:
Clearly identify your name and ID in both, the question sheet and exam book.
Please submit all, the question sheets, the exam bookl
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York University
AP Econ 4410N, Midterm Examination
February 13, 2014
Instructions. Write your name and student number on the front of your answers book. Answer
four out of seven problems. Each problem has the same weight. You cannot use any notes or
books
York University
Faculty of Liberal Arts & Professional Studies
Department of Economics
Course: AP/ECON3249A Labour Economics - Theory
Course Webpage: http:/maple.eso.yorku.ca/2016f-apecon3249a-03
Term: Fall 2016
Prerequisite / Co-requisite: AP/ECON 1000 3
Economics, Faculty of Arts & Professional Studies, York University
Fall 2016 Course Outline
AP/ECON4410 3.0 A
Corporate Finance
Calendar Description / Prerequisite / Co-Requisite
Examines topics such as dividend policy, capital structure, the valuation of
AP ECON 4410 Midterm Exam
Department of Economics
Summer 2 2016
York University
Dr. David K. Lee
(Print) Last name: _
(Print) First name: _
Student number:
_
Please read the instructions below before you begin writing.
1. Please print your name and studen
basics
Simple interest
FV=Prt + P
Compound
n
i
EAR=(1+ ) 1
n
nT
r
FV =PV (1+ )
n
Perpetuity(no maturity, infinite)
Annual rate of return
APR- the stated rate i
- Outflow value
HPR=
end Pbegin P
beg P
YTM= interest the bond sells at; found through trial &
York University
Faculty of Liberal Arts & Professional Studies
Department of Economics
Fall 2016
Course # and Title: AP/ECON 4410 3.0 B: Corporate Finance
Course Webpage: http:/moodle.yorku.ca
Course Instructor:
Name:
Office:
Phone:
Office Hours:
Email:
T
5. Ocean Carriers' policy of not operating ships older than 15 years is a good economic
decision. As the ships get older, the days spent on maintenance and repair for each ship is
also increased. The schedule is stated to be as 8 days of maintenance and r
Economics, Faculty of Arts & Professional Studies, York University
Fall 2016 Course Outline
AP/ECON4410 3.0 A
Corporate Finance
Calendar Description / Prerequisite / Co-Requisite
Examines topics such as dividend policy, capital structure, the valuation of
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 $53,500 ($50,000 principal and
$3,500 interest) next y
Chapter 10: Risk and Return: Lessons from Market History
10.1 The return of any asset is the increase in price, plus any dividends or cash flows, all divided by the initial
price. The return of this stock is:
R = [($104 $92) + $1.45] / $92
R = 0.1462 or 1
Chapter 5: The Time Value of Money
5.1 The time line for the cash flows is:
0
10
$5,000
FV
The simple interest per year is:
$5,000 0.08 = $400
So, after 10 years, you will have:
$400 10 = $4,000 in interest.
The total balance will be $5,000 + $4,000 = $9,
Chapter 12 : An Alternative View of Risk and Return:
The Arbitrage Pricing Theory
12.1 Since we have the expected return of the stock, the revised expected return can be determined using the
innovation, or surprise, in the risk factors. So, the revised ex
Chapter 13: Risk, Return, and Capital Budgeting
13.1 With the information given, we can find the cost of equity using the CAPM. The cost of equity is:
rS = 0.035 + 1.21(0.11 0.035) = 0.1258, or 12.58%
13.2 With the information given, we can find the cost
Chapter 11: Risk and Return : The Capital Asset Pricing Model (CAPM)
11.1 The portfolio weight of an asset is the total investment in that asset divided by the total portfolio value.
First, we will find the portfolio value, which is:
Total value = (135 sh
Chapter 6: How to Value Bonds and Stocks
6.1 The price of a pure discount (zero coupon) bond is the present value of the par.
a. PV = $1,000/(1+0.05)15 = $481.02
b. PV = $1,000/(1+0.10)15 = $239.39
c. PV = $1,000/(1+0.15)15 = $122.89
6.2 The price of any
York University
AP Economics 4410 Sections M, N
Corporate Finance
Winter 2015
Time and Location: Section M: Tu, 8:30-11:20am, FC 203. Section N: Th, 7-10pm, FC 203.
Instructor: Adam Wilczynski, VH 1054, tel.416-736-2100, ext. 20577.
Email adamw at econ.yo
1. What rate of return is expected from a stock that sells for $30 per share, pays
$1.50 annually in dividends, and is expected to sell for $33 per share in one year?
A. 12%.
B. 15%.
C. 19%.
D. 21
E. None of the above.
B
1. Find the price of a $1,0
B. If a rm has twioe as much equity,r as debt in its capital structure, then the rm has:
A. 1555 percent debt.
B. 50.74 percent equity.
0. 50.50 percent debt.
D. 66.67 percent equity.
E. None of the above.
D
Using market valum rather then book value fo