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Tutorial 3 answers
Chapter 5
1.Suppose the annual yield on a two-year government bond is 7.5 per cent, the yield on a
one-year bond is 5 per cent, r* is 3 per cent, and the maturity risk premium is zero.
a. Use the expectations theory to forecast the inte

PRINCIPLES OF FINANCE
REPORT
Unless otherwise referenced, all economic data has been received from www.tradingeconomics.com on 10 September
2015[Tra15].
This paper will analyse different 10 year government bonds to determine where to potentially
invest $1

Tutorial 6 answers
Chapter 8
1.Based on the following probability distribution, what is the securitys expected
return?
State
Probability
1
0.2
2
0.4
3
0.4
Answer:
r
r
5.0%
10.0
30.0
= 0.2(5%) + 0.4(10%) + 0.4(30%) = 15.0%
2. Securities X and Y have the fo

1
Tutorial 8 answers
1. Define the concepts: worst-case scenario, best-case scenario, base-case scenario and
Monte Carlo simulation.
Worst-case scenario: An analysis in which all of the input variables are set at their worst
reasonably forecast values.
Be

1
Tutorial 7 answers
1.Define and give examples of the following concepts:
a. Capital budgeting, replacement decision and expansion decision
b. Independent and mutual exclusive projects
Answer
Please see book pages 167- 176
2.Define the following concepts

Workshop 2 answers
Chapter 4
1.Compare the following two amount of money at 14%:
a) $1,000 in hand today
b) $2,000 due in six month?
Answer:
1000
FV = ?
PV = ?
2000
PV = 2000(1/1.14)1/2 = 2000(0.9365) = $1873
Today, $1000 is worth less. The present value

Tutorial 5 answers
Chapter 7
1. Define the following concepts explaining main characteristics: Preference
shares and ordinary shares
Answer in the book page 113-115, we discussed that in detail in the lecture
Please explain the differences in terms of:
P

1
Tutorial 8 answers
1. Define the concepts: worst-case scenario, best-case scenario, base-case scenario and
Monte Carlo simulation.
Worst-case scenario: An analysis in which all of the input variables are set at their worst
reasonably forecast values.
Be

1
Tutorial 7 answers
1.Define and give examples of the following concepts:
a. Capital budgeting, replacement decision and expansion decision
b. Independent and mutual exclusive projects
Answer
Please see book pages 167- 176
2.Define the following concepts

Workshop 2 answers
Chapter 4
1.Explain the following concepts in your own words and give numerical examples:
a)Time value of Money
b)Annuity
c)Perpetuities
Answer:
a) Definition in page 57
b) Definition in page 58
c) Definition in page 66
Biplob: ask stud

1
Tutorial 11 answers
1) Roberts farm supply sells on terms of 3/10, net 30. Total sales for the
year are $900,000. 40% of the customers pay on Day 10 and take discounts;
the other 60 per cent pay, on average, 40 days after their purchases. What
are:
(a)

Tutorial 4 answers
Chapter 6
1.Define the following concepts:
a) Current (interest) yield, capital gains yield and interest rate price risk.
b) Floating-rate bond, zero coupon bond and junk bond.
c) Corporate bonds, government bond, mortgage bond and debe

Tutorial 3 answers
1. What is the yield curve? Describe the 3 theories that explain the yield curve.
Textbook definition:
A yield curve is also called the term structure of interest rates, as it shows the relationship
between interest rates and the term t

Tutorial 1 answer
Chapter 1
1. What does it mean to maximise the value of a company?
The value of a company can be measured by the market value of its share. Thus, the company
maximises value and wealth by maximising the value of it share.
2. What is the

1
Tutorial 10 answers
1. Define: capital structure, business risk, financial risk, EPS indifferent point and
times-interest-earned ration.
Definition in page 237, 243 and 247.
2.Define and give examples of : Symmetric and asymmetric information
Definition

1
Tutorial 9 answers
1. The McDaniel Company's financing plans for next year include the sale of longterm bonds with a 10 per cent coupon. The company believes it can sell the bonds
at a price that will provide a yield to maturity of 12 per cent. If the m

UNIT OUTLINE
Read this document to learn essential details about your unit. It will
also help you to get started with your studies.
BMA116
Communication for Business Professionals
Semester 1, 2016
THIS UNIT IS BEING OFFERED IN:
Hobart, Cradle Coast & By D

IMPORTANT NOTE FOR FACE-TO-FACE STUDENTS
Answers for tutorials will be only discuss during tutorials (will not
be posted in mylo)
If you cannot attend the tutorial allocated to you in a particular
week, you can go to other tutorial (as long as there are e

IMPORTANT NOTE
How to work in groups
When you work in groups, every member of the group is responsible for each word
that is in your assignment/homework. It is never a valid excuse blame a member of
the group for plagiarism, late submission etc. In live a

BEA112
Workshop Question 10
Name: Li-Fan Su
Student ID: 168780
1. Ans:
DFL= 1.5=
DOL=
30
inEBIT =20
inEBIT
20
=2 times
10
2. Ans:
70000(2521)
280000
=
=2.8 times
70000 ( 2521 )180000 100000
Thus, for every 1 per cent change in sales will be a 2.8 per ce

Workshop question 3
Name: li-fan su
Student ID: 168780
1. Ans:
According to the equation:
dollar return
dollar income+(endind valuebegining value)
Yield=
=
begining value
begining v alue
0+[(50 18)(50 20)]
= -10%
50 20
2. Ans:
According to the equation
r

BEA112 workshop question 4
Name: Li-Fan Su
Students ID: 168780
1.Ans:
FV= 1000
N=12
R= 7%
PMT= 50
Computes to PV of 841.15
2.Ans:
What return would he earn?
in $ term = 925 + 80 -1000 = $5
In % Term = 5/1000 = 0.50%
What portion of this return represents

Workshop question 8
Name: li-fan su
Student ID: 168780
1. Ans:
Worst-case scenario: An analysis in which all of the input variables
are set at their worst reasonably forecast values.
Best-case scenario: An analysis in which all of the input variables
are