FIN 413 Corporate Finance Midterm Exam
1
Discuss the three (3) elements of the decision process. (10 points)
ANS: There are three elements of the decision process, which are the first necessary condit
Chapter 9 Problem
1(a)There are three stages involved with this project.
Stage 1The seismic survey. There is a 50% chance that this will reveal that the geology
indicates the possibility of oil. If it
FIN 413 Corporate Finance Midterm Exam
1
Discuss the three (3) elements of the decision process. (15 points)
The decision process involve three element, a series perceived alternatives, an expectation
Quiz Week 4 Chap 7 and 8
Quiz chapter 8
1. Hard and soft capital rationing.
2. The company cannot base on the standard NPV decision rule like choose only positive NPV
project and abandon all negative
PROBLEM 1
(a) The conflict arises from the differing assumptions that the NPV and IRR methods make about
the opportunity cost (or reinvestment rate) of generated cash flows. Given a perfect capital
ma
Chapter 2 : Quiz Questions
1.) What is the principal-agent problem?
The principal-agent problem is when a principal creates an
environment in which an agents incentives dont align with its own.
The pr
ALIBABA
Alibaba (NYSE: BABA) is the world's leading small business e-commerce company and
the flagship of Alibaba Group. Alibaba was established in 1999 in Hangzhou, China, through its
three markets t
2.
Capital cost is the measure of the results of business operations, refers to the enterprises to raise
and use funds to pay the price, mainly refers to the issuance of bonds, the cost of the stock,
Country global Culture
Each country has a different cultural tradition, often derived from different
ritual habits, so each country to show friendly rituals are also different. For
example, in China,
In recent years, with the popularity of global discourse, more and more foreign
countries scholars join the discussion of cultural globalization. However, as
people cannot reach a unified view on the
Sheng Tang
Professor J. Goddard
ENG Comp II
Mar 8 2017
Mars
Since humans began to explore space, find another habitable planet can be the biggest
mission. Mars, as the planet with the highest degree o
Daily life for using international products
For me, yesterday, I drove my car to Fort Wayne for watching the newest movie:
Power Rangers. My car is Mercedes-Benz E350, made by Germany. I do believe th
Chapter-6
3. a. The graph of the probability density function for flight time
b. The probability that the flight will be no more than 5 minutes late is
P(X130) = 130-120/140-120 = 10/20 =0.5
c. The pr
Chapter-5
13. f(x) = x/6 for x=1,2,3
a. The required condition for a discrete probability functions is:
f(x) 0
f(x) = 1
f(x) 0, x/6 for x=1,2,3 is bigger than 0
f(x) = 1 then 1/6+2/6+3/6 = 1
Because,
17. a. The probability that a domestic airfare is $550 or more
standard deviation () = 110$
= 385, = 110, (z = x-/)
P(x550) = P(Z 550-385/110)
= P(Z 1.5)
= 1- P (Z 1.5)
= 1- 0.93319
= 0.6681
b. The p
31. a.The probability that at least 70 use their phone at least once per hour is
P(x 70)
Z= (x-)/
= np
= np(1-p)
P(x 70) = p(x-np/np (1-p) > 70 (150*0.51)/150*0.51*0.49)
= p( z -1.1433)
= 1-p (z -1.
Chapter-4
19.
a) The probability that a respondent 1829 years of age thinks that global warming will not pose a
serious threat during his/her lifetime is:
P = number of respondents of age 18-29 who sa
Chapter-3, p-55
a)
70
60
50
40
y
30
20
10
0
2
4
6
8
10
12
14
16
18
b) The scatter diagram developed in the part (a) indicates that there is a negative relationship between the
two variables.
c) Sample
25) P(A) = 0.39
P(B) = 0.27
P(AB) = 0.12
a) The probability that a randomly selected person will feel guilty for either wasting food or leaving
lights on when not in a room is
P(AUB) = P(A)+P(B)-P(AB)
Chapter-3, p-29
a) Range = largest value smallest value
= 60 28
= 32
Interquartile range (IQR) = third quartile (Q3)-first quartile (Q1)
Third quartile (Q3) = Lp = (p/100) (n + 1)
= (75/100) (9+1)
= 7
Chapter 1, p- 11
a. The responses for this question provide categorical data because here we are considering
people responses like how many positive responses, how many negative responses and how
many
Chapter -1, p 5
Refer to the data set in Table 1.7.
a. What is the average price for the cordless telephones?
b. What is the average talk time for the cordless telephones?
c. What percentage of the co
CHAPTER 7:
PROBABILITY
DISTRIBUTION
PREPARED BY: C.F.TAN (MSC)
Random Variable
Example 1:
Example 2:
Discrete Random Variable
Example 3:
Example 4:
Example 5:
Example 6:
EXERCISES 7.1:
Mathematical Ex
CHAPTER 8:
SAMPLING
DISTRIBUTION
PREPARED BY: C.F.TAN (MSC)
Example 1:
Distribution of the Sample Means for
an Infinite Population (or Finite
Population with Replacement)
Example 2:
Example 3:
Distrib
CHAPTER 6:
PROBABILITY
PREPARED BY: C.F.TAN (MSC)
Introduction to Probability
For a situation in which several different outcomes are possible,
probability is defined as a fraction or a proportion of