Solution
PROBLEM SET #5
CAPITAL STRUCTURE
1. Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000
in a strong economy, with each outcome being equally likely. T
Solution
PROBLEM SET #1
INTRODUCTION
1. Conceptual checks
List of terms
Bond, Capital budgeting, Chief financial officer (CFO), Controller, Corporation, Financial assets,
Financial markets, Financing,
Solution
PROBLEM SET #2
TIME, MONEY, AND INTEREST RATES
1. It has long been told that the Dutch purchased Manhattan Island in 1626 for the value of 60
guilders ($24). Assuming that the Dutch invested
Thammasat Business School Thammasat University
Course Syllabus
Semester/ Academic Year: 1st / 2014 (MIF# 16)
MF641 Corporate Finance Theory
Course Description
This course explores the core theoretical
Solution
PROBLEM SET #3
VALUING PROJECTS AND FIRMS
1. A proposed overseas expansion has the following cash flows.
Year
Cash flows
0
1
2
3
4
-100
50
40
40
15
Calculate the payback, the discounted payba
Solution
PROBLEM SET #4
RISK AND RETURN
1. The table below shows the one-year return distribution for stock A and B.
Stock A
Return Probability
Stock B
Return Probability
R
-25%
-10%
0%
10%
25%
R
-100
PROBLEM SET
(REVISION)
Question 1:
You are considering how to invest part of your retirement savings. You have decided to put
$200,000 into three stocks: 50% of the money in GoldFinger (currently $25/
Petrolera Zuata, Petrozuata C.A.
Li Peng [5702042119]
Pichaya Ruangdejvorachai [5702042317]
Nattawat Kittisommanakun [5702042168]
Summary of the Project
Petrozuata
Project Place
Orinoco Belt [Central
Research Insight
Foundations of Factor Investing
Jennifer Bender
Remy Briand
Dimitris Melas
Raman Aylur Subramanian
December 2013
msci.com
Research Insight
Foundations of Factor Investing
December 201