Project the FCF for the next five years based on the growth rates given.
Assume the constant horizon rate of 3.00%.
Calculate the APV of this project.
Total net operating capital is expected to grow at next year's sales growth rate.
2013
Net Sales
COGS
SG
Project the FCF for the next five years based on the growth rates given.
Assume the constant horizon rate of 3.00%.
Calculate the APV of this project.
Total net operating capital is expected to grow at next year's sales growth rate.
2013
Net Sales
COGS
SG
Given the following information, fill in the gray boxes.
Unlevered Beta
Risk-free rate
Equity Risk Premium
Tax rate
0.95
3.50%
6.00%
35.00%
Expected FCF
Expected Growth Rate
$12.50
3.50%
Weight of Debt
Cost of Debt
Levered Beta
Cost of Stock
WACC
Value of
Given the following information, fill in the gray boxes.
Unlevered Beta
Risk-free rate
Equity Risk Premium
Tax rate
0.95
3.50%
6.00%
35.00%
Expected FCF
Expected Growth Rate
$12.50
3.50%
Weight of Debt
Cost of Debt
Levered Beta
Cost of Stock
WACC
Value of
International Financial Management
Homework for Chaps 6, 7
Prepared by Wikrom Prombutr
1
A formal statement of IRP is
F ($ / ) 1 i$
a)
S ($ / ) 1 i
F ($ / ) 1 i
b)
S ($ / ) 1 i$
F ($ / ) S ($ / ) 1 i$
c)
S ($ / )
1 i
d) F ($ / ) S ($ / ) i$ i
2
Suppose th
Fin4502_R2
Student: _
1. The semi-strong form of the EMH states that _ must be reflected in the current stock price.
A. All security price and volume data
B. All publicly available information
C. All information including inside information
D. All costles
1
FIN 400 Class Notes Set 1:
Detailed Review and Extension of FIN 300
Dr. Chanwit Phengpis
California State University, Long Beach
4
Time Value of Money
Future Value of Money
Refers to the amount an investment will grow to after one or more peri
1. The semi-strong form of the EMH states that _ must be reflected in the current stock price.
A. All security price and volume data
*B. All publicly available information
C. All information including inside information
D. All costless information
2. When
Chapter 11 - Managing Bond Portfolios
Chapter 11
Managing Bond Portfolios
Multiple Choice Questions
1. All other things equal, which of the following has the longest duration?
A. A 30 year bond with a 10% coupon
B. A 20 year bond with a 9% coupon
C. A 20
Fin4502_E2
Student: _
1. The semi-strong form of the EMH states that _ must be reflected in the current stock price.
A. All security price and volume data
B. All publicly available information
C. All information including inside information
D. All costles
Fin4502_3
Student: _
1. You write one IBM July 120 call contract for a premium of $4. You hold the option until the expiration date
when IBM stock sells for $126 per share. You will realize a _ on the investment.
A. $200 profit
B. $600 loss
C. $200 loss
D
Chapter 10 - Bond Prices and Yields
Chapter 10
Bond Prices and Yields
Multiple Choice Questions
1. The invoice price of a bond is the _.
A. stated or flat price in a quote sheet plus accrued interest
B. stated or flat price in a quote sheet minus accrued
Chapter 4
Interest Rates
Options, Futures, and Other Derivatives 8th Edition,
Copyright John C. Hull 2012
1
Types of Rates
Treasury rates
LIBOR rates
Repo rates
Options, Futures, and Other Derivatives 8th Edition,
Copyright John C. Hull 2012
2
Treasury Ra
Fin4502_E1
Student: _
1. In securities markets, there should be a risk-return trade-off with higher-risk assets having_
expected returns than lower-risk assets.
A. Higher
B. Lower
C. The same
D. Cant tell from the information given
2. Which one of the fol
Chapter2
AssetClassesand
FinancialInstruments
1
MoneyMarketInstruments
They are short-term, high liquid, and
relatively low-risk debt instruments.
n Treasury bills
n Certificates of deposits
n Commercial Paper
2
MoneyMarketInstruments(cont.)
n
n
n
n
Eurod
CHAPTER4
MutualFundsandOther
InvestmentCompanies
1
Investmentcompanies
Investment companies: financial intermediaries that invest the
funds of _ in securities or other assets
individual investors
Services of Investment Companies
n Administration & record
Chapter3
SecurityMarkets
1
HowFirmsIssueSecurities
Primary Market
n When firms need to raise capital, they may choose
float
to sell or _ securities.
n It is for new issues of securities
n Public offerings of both stocks and bonds typically
investment bank
Chapter1
InvestmentsBackgroundand
Issues
1
Investments
n
Essential nature of investment:
Reduced current consumption
q Planned later consumption
That is,
_
Investment is the current commitment of money or
other resources in the expectation of reaping futu
1.
TheOhiostatelegislaturepassesalawtoregulatelocaldeliveryservices.
Thefinalauthorityregardingtheconstitutionalityofthislawis
a.
b.
c.
d.
thecourts.
thepresidentoftheUnitedStates.
thegovernorofOhio.
theU.S.Congress.
ANSWER: A
NAT:AACSBReflective
PAGE:
6
IS 480. Advanced Database
Lecture Notes
Fall 2013
C. Sophie Lee Ph.D.
Professor
Department of Information Systems
College of Business Administration
California State University, Long Beach
Copyrighted Material
1
FIN 400 Intermediate Financial Management - Sections 01 and 03
California State University, Long Beach
Fall 2013
Instructor: Dr. Chanwit Phengpis
Office:
CBA Building Room 446
Telephone: (562) 985-1581
Email:
[email protected] or [email protected]
Practice questions: Quiz 3
FIR 3710
1. If the daily returns on the stock market are normally distributed with a mean of 0.05%
and a standard deviation of 1.00%, the probability that the stock market would have a
return of -23.00% or worse on one particula
Practice Questions for Final Exam
FIR 3710
Fall 2003
1. If a firm issues no new equity, book value will _.
A) decrease each year by the amount of retained earnings
B) decrease each year by the amount of retained earnings minus depreciation on fixed
assets
April 3rd, 2015
Michael Buttram
724 Cloyden Rd
Palos Verdes, CA 90274
Dear Michael:
It is my pleasure to confirm our offer of an internship with Frontier Communications. The work location
for this position will be Elk Grove, CA. As agreed, your internship
Michael Buttram
011026689
HW 3
3.1
Beta = Covariance (stock versus market returns) / Variance of the Stock Market
Beta =0.70/0.22=17.5%
3.3
Expected return is just the weighted average of the individual returns, so
12% * 0.3 + 18% * 0.7 = 16.2%.
Variance
1, Firms equity value
measured in term of
accounting principle,
book value (not
affected by market
value)
In general, old vs.
new economy
companies, differ in
term of ratio
Internet companies
value, this on return
of a stock
Market consensus
value, this o