Group 5 Ellensburg
(Dandongni Pan, Xinran Zhang,
Zhongping Chen, Yu Yang)
a. What is capital budgeting?
Analysis of potential projects.
Long-term decisions; involve large expenditures.
Very important to firms future.
Capital budgeting is the proces
May 16, 2016
Part III. Problems (35 points)
1. An analyst has collected the following information regarding Christopher
The companys capital structure is 70 percent equity, 30 percent debt.
The yield to maturity on the
Sample True or False questions
The proper goal of the financial manager should be to maximize the firm's
expected profit, since this will add the most wealth to each of the individual
shareholders (owners) of the firm.
In a competitive ma
Apr 18, 2016
Part III. Problems (40 points)
Here are the expected returns on two stocks:
If you form a 50-50 portfolio of the two stocks, what is the portfolio's st
1. What can you learn from the "funded ratio" in the financial report of a Pension Trust Fund? (Points : 1)
the relationship between the amounts paid into the Pension Trust Fund by employers and
the amounts that should have been paid into the Fund