Chapter 2 Problems
Problem 2
Assume that you own a portfolio of five separate stocks. Each yeilds a different return and represents a different proportion
of your portfolio. The stocks and their returns are as follows:
Stock
1
2
3
4
5
Percentage of portfo
Primary Source Documen
Income Statement Summary, Income Statement Detai
This work book contains actual financial statements for a
statement is for a year time period and the balance shee
day of the income statement period. Carefully examine
within this wo
Retirement Plan
Matching up to 6%
You have recently graduated with a Bachelors degree in Hospitality Management from the Woodbury School of
Business. After applying at several hotels you are offered a position, which you accept, as a sales coordinator at
Chapter 5 Problems
Problem 1
What is the future value of $1,000 invested for five years at the following interest rates?
PV
$1,000
n
5
Answer in the space provided below:
5.00%
$1,276.28
8.00%
$1,469.33
10.00%
$1,610.51
$1,276.28
$1,469.33
$1,610.51
Probl
Chapter 4 Problems
Problem 1
The Clayton Hotel is expected to generate different returns based on the state of the economy. These are shown in the
following figure
State of the economy
Probability of each state
Recession
10%
Moderate growth
60%
Boom
30%
a
Chapter 3 Problems
Problem 1
You have been provided with the current assets and current liabilities section of the Pacifica Hotel.
PACIFICA HOTEL
Partial Balance Sheet
December 31, 2003
Current Assets
Current Liabilities
Cash
Marketable Securities
Account
Chapter 5 Problems
Problem 1
What is the future value of $1,000 invested for five years at the following interest rates?
PV
$1,000
n
5
Answer in the space provided below:
5.00%
$1,276.28
8.00%
$1,469.33
10.00%
$1,610.51
$1,276.28
$1,469.33
$1,610.51
Probl
Chapter 6 Problems
Problem 6
Marriott Corporation originally issued a 9 percent (9.375%) bond in 1987. These $1,000 par value bonds mature in three yea
What is the value of a Marriott Corporation bond at each of the following required rates of return, ass
Chapter 10 Problems
Problem 2
An independent capital budgeting project is expected to have the following cash flows:
Year
Cash Flows
0
1
2
3
4
Year
-$500,000
$100,000
$150,000
$250,000
$300,000
Cash Flows
0
1
2
3
4
Required Rate of Return
-$500,000
$100,0