Take-home Final FIN 530
NAME: Sheng Zhou
PART I. 10 points each. Show work or explain briefly.
1. The market value of a firm with $600,000 of debt is $2 million.
EBIT are expected to be perpetuity. The interest rate on debt is
10 percent. The company is i
17. Abandonment Value.
We are examining a new project. We expect to sell 9000 units per year at $50 net cash flow apiece
for the next 10 years. In other words, the annual operating cash flow is projected to be $50 x 9,000 =
$450,000. The relevant discount
Chapter 16: Capital Structure
Summary
First of all, this chapter represents the idea of the Pie Model, which states that the firms value is
equal to the sum of the debt market value (bonds) and the equity market value (stocks). It is
important to mention,
A Random Walk Down Wall Street Summary
A random walk down Wall Street is a book written by Burton G. Malkiel, which is written with a
purpose to give some practical advice on investment opportunities and strategies. In this summary
I would like to discuss
The MBA decision
1) How does Bens age affect his decision to get an MBA?
Age is a very important factor that can highly affect Bens decision to get an MBA. He is now 28
years old and he is planning to work for 40 more years after graduating. That means, h
Problem Set 1a: Present Valuing Bonds, Loans, and other Cash-Flows
General Instructions:
Write out a time line showing the Cash-flows (CFs) and the algebraic equations for each problem. Solve
the problems algebraically, before using your calculator. Do no
Problem Set 1a: Present Valuing Bonds, Loans, and other Cash-Flows
1) Suppose that you are going to receive 300$ at the end of each year for the next 3 years, and
200$ for the subsequent five years. What is the PV of these CFs if the current discount rate
The Boeing Company (BA)
15- 1916 . B&W,
, 15-
The Pacific Aero Products Company. 1917-
Boeing Airplane Company, Boeing Company.
, .
Boeing 2 :
Boeing
Commercial
Airplanes,
.
Integrated Defense Systems,
Application of Growth Opportunities
Hai Hong Corporation has 10 million shares of common stock
outstanding, and the share price of the stock currently is $30 with
the beta of 1.10. In addition, the company has 100,000, $1,000
face value each, semiannual 7
Chapter 10: Risk and Return
Summary
The most important question that occurs after an investment is: how much return do we get for
each dollar invested? First of all, this chapter highlights that there are two main forms of total
return from an investment:
Chapter 13: Summary
This chapter gives an answer to the question: how the cash-flows of risky projects should be
discounted. 3 synonyms are used in this chapter: discount rate, cost of capital and required
return. When all the projects of the firm have th
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 05/05/2014
Summary on: A Critique of the Asset Pricing Theory's Tests Part I
Richard Roll
The author started this paper with the two big assumptions he used throughout his
research, which are (a).
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 05/12/2014
Review on: A Random Walk Down Wall Street
Burton Malkiel
This book by Princeton University professor Burton Malkiel is very famous in the field
of economic and finance. The idea througho
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 04/28/2014
Summary on: Corporate Governance and Risk-Taking
Kose John, Lubomir Litov, and Bernard Yeung
The purpose of this paper is to study the relationship between investor protection and
corpor
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 05/12/2014
Summary on: Expectations and the nonneutrality of Lucas
Thomas Sargent
This paper was originally composed to be used for the conference celebrating the
anniversary of Lucass Expectations
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 04/28/2014
Summary on: Who Cares? Corporate Governance in Today's Equity
Markets
Mats Isaksson & Serdar Celik
At the beginning, the authors suggest that there are two major sources of confusion in
FIN 530 Mid-term Take-home Due May 5, 2014
You may use any book or notes, but you may not talk to each other.
Answer briefly.
NAME:
Sheng Zhou
SID: 300494888
Be brief and to the point.
1(10
points) What is the fundamental relationship between risk
and ret
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 05/28/2014
Summary on: Inefficient Markets: An Introduction to Behavioral Finance
Andrei Shleifer
Traditional finance theories states that the market is efficient and investors and business
manager
Name: Sheng Zhou
Class: FIN 530
Instructor: Dr. Kim
Date: 05/05/2014
Summary on: An Empirical Evaluation of the Capital Asset Pricing Model
Blake Taylor
The author started this paper with a brief introduction of when and how the Capital
Asset Pricing Mode