1 1 out of
. 1:99-555! .
MC Du. Aii Mario, l'nc. is considering the purchase ofABC Co. Marita.
l'u'larl-(o, Inc. is considering the purchase of ABC Co. l'u'larl-to belieyes that NBC Co. can generate cash
ows of $5,500, $10,5DD, and $16,?DD oyer the
This cannot be solved directly, so it's easiest to just use the calculator method to get an answer. You can then use the calculator z
verify that your answer is correct.
Enter 1 131:2 f2 -95 2 30? 1,000
N in Pv PMT W
O 132 percent
0 3.03 percent
| Problem 68 Calculating Annuity Ilr'al'ues [LG 1]
You want to have $66,901:) in your savings account 13 years from now, and you're prepared to mal-te
equal annual deposits into the account at the end of each year. tithe account
16- 1outof ovu
MC Du. F You cannot attend the shareho!.
You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf. WI
O cumulative voting
O straight voting
Note: Intermediate answers are shown below as rounded, but the full answer was used to
complete the calculation.
I N I. '1' I. Pt .- PM" .- Fv I
Coupon rate = $51.30:r $1,000 2 5.14%
l' _I_ I _._._ ._
Here we need to nd the coup
The NPR! of a project is the F! of the inows minus the F! of the outows. The equation for the NW of
this project at a 12 percent required return is:
p1,! = $23,000 + $13,000! 1.12 + $10,000!1.122 + $12,000!1.123 = $3,003.01
t a 12 percent req
_ .1. slggtpjntE
| Problem 100 Calculating Project DEF [1.01 I
Helper, lnc., is considering a new threeqrear expansion project that requires an initial xed asset
investment of $2.02 million. The xed asset will be depreciated straight-line to zero o
MC Du. t3 Which of the fottowr'ng statements is correct.
1llli'hich of the following statements is correct concerning the term structure of interest rates?
|. Expectations of lower ination rates in the future tend to lower
You purchased 280 shares of stock at a price of $53.37 per share. Over the last year, you have
received total dividend income of $305. What is the dividend yield?
Dividend yield = ($305 / 280
1.Suzie owns five different bonds valued at $36,000 and twelve different stocks
valued at $82,500 total. Which one of the following terms most applies to Suzie's
2.Which one of the following is a
1.Last year, T-bills returned 2 percent while your investment in large-company
stocks earned an average of 5 percent. Which one of the following terms refers
to the difference between these two rates of return?
1.The Cookie Shoppe expects sales of $3,100 next year. The profit margin is 4 percent
and the firm has a 43 percent dividend payout ratio. What is the projected increase in
Change in retained earnings
In January 2007, the average price of an asset was $28,558. 7 years earlier,
the average price was $20,808. What was the annual increase in selling
To answer this question, we can use either the FV
Imprudential, Inc., has an unfunded pension liability of $800 million that
must be paid in 16 years. To assess the value of the firm's stock, financial
analysts want to discount this liability back to the present. If the relevant
discount rate is 8.0 p
Consider the following simplified financial statements for the Phillips Corporation (assuming no
The Anberlin Co. had $312,000 in 2011 taxable income. Use the tax rates from Table 2.3.
Calculate the companys 2011 income taxes.
Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($312,000 100,000) =
A firm has sales of $1,200, net income of $224, net fixed assets of $540, and current assets of
$296. The firm has $99 in inventory. What is the common-size statement value of inventory?
A firm has common stock of $80, paid-in surplus of $160, total liabilities of
$360, current assets of $290, and fixed assets of $500. What is the amount
of the shareholders' equity?
Shareholders' equity = Current assets + Fixed
Which one of available only to firms having a single owner
applies to a
limited liability for limited partners only
taxed similar to a partnership
taxed similar to a C corporation
When we say why we say "money has time value," we mean:
It takes time to make money
Time is money
Money to be received or paid at one time is not of the same value as mon
or paid at another time
A dollar to be paid today is worth less than a dollar to be
Homework Assignment for Week 3:
For Week 3, please turn in the answers to the following questions:
1. Define the following terms as they apply to bonds:
a. Face value
b. Maturity date
c. Coupon interest (including coupon interest rate
True / False Questions
23. (p. 41) A job tends to have less of a long-term commitment to a field than a career.
24. (p. 53) Education, training, and the demands for a person's skills are major influences on
25. (p. 56) A tax-exempt emplo
Practice Ch- 5
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the quest
Solve the problem.
1) The length of time a traffic signal stays green (nicknamed the "green time") at a particular intersection foll
Name Kyle Raisher
Student Number 14137957
In Class Exercise
Tuesday, October 6, 2015
Connies Cupcakes is expecting constant growth in future years.
Connie is estimating that the next dividend will be $3.15 per share.
After that, Connie expects growth to b
U. of Missouri-St. Louis
FIN 3500 Financial Management Spring Semester 2015
Second Exam Study Guide
Study Guide for Second Exam
The Second exam will be in class on Wednesday, March 11, during our regular class
Please bring a #2 pencil, your
U. of Missouri-St. Louis
FIN 3500 Financial Management Spring Semester 2014
Third Exam Study Guide
Study Guide for Third Exam
The Third Exam will be in class on Monday, April 6, during our regular class meeting
Please bring a #2 pencil, your studen