BUSN-379
Week 2 Homework Chapter 4
8. Calculating Rates of Return. In 2011, an 1880-O Morgan silver dollar sold for $13,113. What was the
rate of return on this investment?
Ans:
We understand that the coin was originally valued at $1 and 131 years old at
BUSN-379
Week 3 Homework Chapter 6
16. Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual payments, and are priced
at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest
rates suddenly rise
BUSN 379 HW Week 2
Essentials of Corporate Finance - Ross, Westerfield, Jordan 8th
HW Week 2 PROBLEMS
Chapter 4 Page 120 Problems 17 and 18
Chapter 5 Page 155 Problems 1, 4, and 12
EASY WAY TO PRINT OUT THIS EXCEL PAGE: alt+P then Enter
NOTE TO STUDENTS:
Calculating Rates of Return. In 2011, an 1880-O Morgan silver
dollar sold for $13,113. What was the rate of return on this
investment?
FV= 13,113
PV=$1
N= 2011-1088=131
PMt=0
FV = PV(1 + r)t
r = (FV / PV)1 / t 1
r = ($13,113 / $1)1/131 1
I used the calcul
Chapter 17: 6, 7, and 14
6. Each business day, on average, a company writes checks totaling $19,500 to pay its suppliers. The
usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its
customers each day, in the
Chapter 6 #16
Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has
maturity, whereas Bond Ted has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentag
1.What are the monthly payments for a 30-year traditional mortgage? What are the payme
Monthly payments for a 30-year traditional loan
$212,098.17
2.Prepare an amortization table for the first six months of the traditional 30-year mortgage
year
beginning
Chapter 11: 4, 7, 17 parts a, b, and c, and 29
You have $10,000 to invest in a stock portfolio. Your choices are
Stock X with an expected return of 14 percent and Stock Y with an
expected return of 11 percent. If your goal is to create a portfolio
with an
1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified inte
return, and net present value of the proposed mine.
years
cash flow
0 -650000000
1 80000000
2 121000000
3 162000000
4 221000000
5 210000000
6 154000000
7 10
BUSN-379
Week 1 Homework — Chapter 2
8. Calculating OCF. Hammett, Inc., has sales of $34,630, costs of$10,340, depreciation expense of
$2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, or
OCF?
Ans:
Ham
Chpt 12: 3,5,6 15
3. Stock in CDB Industries has a beta of .90. The market risk premium is 7 percent, and T-bills are c
3.5 percent. CDBs most recent dividend was $1.80 per share, and dividends are expected to grow
annual rate indefinitely. If the stock s