Dazek ﬁle
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CBAD 363 Fall 2014
October 3, 2014 Future and Present Value of Annuities
Future Value of an Ordinary Annuity
1. What is the ﬁiture value of an ordinary annuity of $400 per year for 10 years if it earns 6%
interest compounded annually?
An

PRACTICE for Monday and Friday, Nov. 3 & 7, 2014
1. Nelson's Mulch has the following current account values for the year.
Account Begn_n' ing Balance Ending Balance
Accounts receivable $2,600 $2,350
Inventory 4,900 5,200
Accounts payable 3,300 2,950
The

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Chapter Outline C!
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7.1 Common Stock Valuation
7.2 Some Features of Common and
Preferred Stocks
7.3 The Stock Markets
’ Cha ter 7 Equity arkets and 5
Stock Valuation '
May-'41me
Cash Flows for Stockholders
o If u own a share of s

CBAD 363 Final Exam Guide Fall 2014
Section 1 that meets at 1:00-1:50 p.m. MWF Exam is scheduled for
1:30 p.m. Friday, December 05 in Wall 305 (our normal classroom)
Section 2 that meets at 10:00-10:50 a.m. MWF the Exam is scheduled for
11:00 a.m. on Wedn

l Key Concepts and Skills I
Understand
— How firms manage cash and various collection,
concentration, and disbursement techniques
— How to manage receivables, and the basic
components of credit policy
— Various inventory types, different inventory
a

CBAD 363 Fall 2013 Solving for interest rate and number of periods
October 1, 2014
1. Donald Jones invested $2_00;en years ago with an insurance company that has paid him‘Z’
percent simple interest on his funds. Darla Ward invested $3,500 ten years ago in

CBAD 363 In-Class September 26, 2014 Future and Present Value
. What is the ﬁlture value of $2,000 if it is invested at 8% compounded annually for 10
years? 2 O OO Kt~%\ l :i/lSIZQS
. Yolanda purchased a 6-year, 8 ercent savings certiﬁcate for $50.0. If i

CBAD 363 Fall 2014
Compounding more than once per year
October 1, 2014 SOLUTIONS
More than Annual Compounding - NEW FUTURE VALUE FACTORS NEEDED
0. Frances only has $2,000 to invest in an account that pays 12% interest. Three years later
she needed her mon

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Please .answemeatfr—onsepa‘m.Vermeer; ii 141% GD 7‘0
ac
various states of the economy. What is the expected return on this stock?
Probabilith
State of of State of Rate of
Economji Economy Return

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“ " lie-Wrﬁiiiii‘ework #4 CBAD 363
Due Friday, November 14, 2014
1. Stoney Brooke, Inc. has sales of $930 000 and cost of goods sold of $650 000. The ﬁrm
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October 27, 2014
CBAD 363 - Secrest — Spring 2014
OFFICIAL Textbook outline and study guide foriExam 4 OFFICIAL
’Note - the exam may include some material that is not listed here. This is meant to be a general guide and not a comprehensive list of
specifi

CBAD 363: Business Finance
Things to know from Chapter 6 for second exam on Monday, September 22, 2014
Fretinrinarv i Priors material from other chapters will be added
«rm
Chapter 6: Interest Rates and Bond Valuation
Page 167 Gilly the section “Bond ﬁeaai

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CBAD 363 Sections 01 8: 02, Fall 2014
First Exam to be held Friday, August 29, 2014
THE QUESTIONS OR THINGS TO KNOW UNDER EACH CHAPTER BELOW ARE PRELIMINARY AND AN
UPDATED VERSION WILL BE AVAILABLE MONDAY, AUGUST 25, 2014
Textbook: Essentials of Corpo

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CBAD 363 Exam 5 Study Guide “3.2 7I$
Exam on Monday, November 17, 2014 '
FINAL as of Nov. 12, 2014 Z 0 ,zgdo/vw'wa ?3/
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Chapter 16: Short-Term Financial Planning N7 fﬂbbh; {52¢ Ha);
Pages 514-top of 522 PMZQ
16.1: Tracing Cash and Net Working Ca

CBAD 363 Fall 2014 Homework #2
Due Monday, October 6, 2014 /O
1. Find the present value of a $20,000 lump sum to be received 5 years from now if the
opportunity cost applied is 6% compounded annually. I
F0 :WHHRW e) “Pu: FVmaw = $.13: Wail/9"”
2. For eac

Chapter Outline FOR EXAM 1
15.1 The Financing Life Cycle of a Firm: Early-Stage
T'" Financing and Venture Capital
15.2 Selling Securities to the Public: The Basic Procedure 7 :
._.——
15.3 Alternative Issue Methods
I—' _
mUndenerters
Key Concepts an

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Chapter Outline
16.1 Tracing Cash and Net Working Capital
16.2 The Operating Cycle and the Cash Cycle
16.3 Some Aspects of Short-Term Financial
Policy
Key Concepts and Skills
Understand:
—The operating and cash cycles and
underst

DEREK p542
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CBAD 363 Fall 2014 Q‘f
Homework #5 Due at the time of the exam November 17., 2014 /1 Q
1. On Wednesday, June 11, Bertha's Bakery purchased $41,000 worth of goods. The terms
of the sale were 1/5 net 25. The nigger of days of ereﬁit gr

CBAD363
TEST ONE REVIEW
CHAPTERS 1-5
Chapter One
Basically the only things to study here are terms, definitions and concepts. You should know them.
Chapter One Essential Knowledge
1.
Four basic areas of corporate finance.
The 4 basic areas of corporate fi

Dereck Davis
CBAD 363
Chapter 2 Homework
1. Current assets- 1,970
Net fixed assets- 9,650
Current liabilities- 1,520
Long Term Debt- 4,370
Assets minus Liabilities= Equity
(1970+9650) (1520-4370)=5730
Current assets minus Current liabilities= Net Working

Dereck Davis
CBAD 363
Chapter 9 Homework
1.
You wouldnt count the 7.5 million because it was already spent before this project making it a sunk
cost. So using the amounts that do count you would have:
Cash flow = $10,300,000 + $24,000,000 + $975,000
Cash

Dereck Davis
CBAD 363
Chapter 6 Homework
1. Yes, the yield to maturity is the same thing as the required return on a bond. The YTM is not the same
as the coupon rate. The coupon rate does not change as it is a fixed rate based on the interest payment
made

Dereck Davis
CBAD 363
Chapter 8 Homework
5.
The IRR is the discount rate that makes the NPV of an investment 0. Using my spreadsheet I came up
with an IRR = 14.02%. We would accept this project.
6.
The NPV is the difference between an investments market v