Financial Markets and Institutions
Answers to EndofChapter Questions
Chapter 2
21
The prices of goods and services must cover their costs. Costs include labor, materials, and capital. Capital costs to a borrower include a return to the saver wh
Practice questions #1 Chapter 5, 6
BUS 314, Spring 2016
Joonho Kim
1) You are interested in purchasing a new automobile that costs $35,000. The dealership
offers you a special financing rate of 6% APR (0.5%) per month for 4 years. Assuming that
you do not
Question 1
1 / 1 pts
Market forces determine interest rates based ultimately on the willingness of individuals,
banks, and firms to borrow, save, and lend.
Correct!
True
False
Question 2
1 / 1 pts
Howard is saving for a long holiday. He deposits a fixed a
Chapter 8
Stocks and Their Valuation
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
Identify some of the more important rights that come with stock
ownership and define the following terms: proxy, proxy fight, takeover,
and pr
Relationship between Coupon Rate, Current Yield and Yield to Maturity
After completing the table below, describe the relationship between the coupon rate, current yield and
yield to maturity based on whether the bond is a discount bond, par value bond or
Chapter 10 The Basics of Capital Budgeting
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
Define capital budgeting, explain why it is important, and state how
project proposals are generally classified.
List the steps involved
Chapter 4
The LEARNING OBJECTIVES
Financial Environment:
Markets, Institutions, and Interest Rates
After reading this chapter, students should be able to:
List some of the many different types of financial markets, and identify
several recent trends takin
Microsoft Connector for Teradata by Attunity
SQL Server Technical Article
Writer: Doug Wheaton (Attunity)
Technical Reviewers: Ramakrishnan Krishnan (Microsoft), Rupal Shah (Teradata)
Published: October 2009
Applies to: SQL Server 2008
Summary: This white
TIGER DIVISION
Winner's Bracket
1
4
GAME C
GAME A
5
3
GAME G
GAME B
6
GAME D
2
SUPER
BOWL
1 Loss Bracket
LB
LG
GAME E
LC
GAME I
GAME H
LA
GAME F
LD
Game #
A
B
C
D
E
F
G
H
I
J
*K
Field Info
Sat, 10/17, 9am, F2
Sat, 10/17, 9am, F3
Tues, 10/20, 6:05pm, F1
Tu
Chapter 5
Risk and Rates of Return
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
Define dollar return and rate of return.
Define risk and calculate the expected rate of return, standard
deviation, and coefficient of variation
Chapter 6
Time Value of Money
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
Convert time value of money (TVM) problems from words to time lines.
Explain the relationship between compounding and discounting, between
future and
Chapter 9
The Cost of Capital
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
Explain what is meant by a firms weighted average cost of capital.
Define and calculate the component costs of debt and preferred stock.
Explain why
Chapter 7
Bonds and Their Valuation
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
List the four main classifications of bonds and differentiate among
them.
Identify the key characteristics common to all bonds.
Calculate
payme
Financial Statements,OBJECTIVES and Taxes
Chapter 2 Flow,
Cash
LEARNING
After reading this chapter, students should be able to:
Briefly explain the history of accounting and financial statements, and
how financial statements are used.
List the types of in
Quark Industries is considering four independent projects shown below.
Evaluate the projects.
Project rate
6.0%
M
Year
0
1
2
3
4
5
NPV
IRR
MIRR
PI
$
9.0%
N
15.0%
O
22.0%
P
-2,000,000
-2,500,000
-2,400,000
-1,750,000
500,000
600,000
1,000,000
300,000
500,0
1
2
Compounding a lump sum
Present value
interest
periods (years)
Future Value
If you put $4000 in the bank at 9% compounded annually,
how much will I have a the end of 11 years?
Discounting a lump sum
Future value
interest
periods (years)
Present Value
Y
1 National Beverage Company
2007
Sales
$
21,962,000 $
Annual growth
CAGR
2008
23,104,000 $
2009
24,088,000
2010 est
4.73%
Students: Please note that this is a very simplistic forecast method. We will improve on this with the nex
Problem 9
National Beverag
Sep-14
Monday
Tuesday
12
3
A
15
B
B
A
29
30
B
B
B
B
A
A
B
26
B
2
A
A
19
25
1
B
12
18
24
23
A
A
A
Friday
5
11
17
16
22
B
10
9
Thursday
4
A
Labor Day
8
Wednesday
B
A
3
A
B
Thursday
Friday
Oct-14
Monday
29
Tuesday
30
B
6
1
A
8
B
20
A
B
A
B
24
B
30
B
A
17
23
SPC32
8
Deep dive on self-service
data retrieval with Power
Matt Masson
Query
Senior Program Manager
Microsoft
Getting External Data Into Excel
Fetch data from disparate sources
Relational databases and cubes
Text files and web pages
Filter and shape
Sele
1 National Beverage Company
2007
Sales
$
21,962,000 $
Annual growth
CAGR
2008
23,104,000 $
2009
24,088,000
2010 est
4.73%
Students: Please note that this is a very simplistic forecast method. We will improve on this with the nex
Problem 9
National Beverag
BUS314 SP2017 Assignment No.3
Yue Zhao
You must analyze the financial statements in Excel; and then copy your result
back to Word file with written comments/solutions to questions. Solutions must
be submitted via Laulima
Kyle Wilson, the COO for Sports Ma
MODIFIED ACCELERATED COST RECOVERY SYSTEM (MACRS)
The Tax Reform act of 1986 created the Modified Accelerated Cost Recovery System of
Although
the directions
may seem complicated, the use of the MACRS is
depreciation that allows for faster depreciation of
Holding period returns
Capital appreciation, current return and total return
Period
0
1
2
3
$
$
$
$
Price
Dividend
20.00
21.25 $
1.20
20.75 $
1.20
22.10 $
1.22
Capital
appreciation
Current return
6.25%
-2.35%
6.51%
6.00%
5.65%
5.88%
Risk and Return for a
Relationship between Coupon Rate, Current Yield and Yield to Maturity
After completing the table below, describe the relationship between the coupon rate, current yield
and yield to maturity based on whether the bond is a discount bond, par value bond or
1
2
Compounding a lump sum
Present value
interest
periods (years)
Future Value
If you put $4000 in the bank at 9% compounded annually,
how much will I have a the end of 11 years?
Discounting a lump sum
Future value
interest
periods (years)
Present Value
Y
Problem 3-13
Free Cash Flow
Bailey Corporation's financial statements (dollars and shares are in millions) are provided here.
Balance Sheets as of December 31
2014
2013
Cash and equivalents
$ 15,000
$ 12,000
Accounts receivable
25,000
20,000
Inventories
2
5-1. What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? The opportunity cost is the rate of interest one could earn on an alternative
investment with a ri
a
b
c
d
e
Chapter9 StockGrowthRatesandValuationYouareconsideringbuyingthestocksoftwocompaniesthatoperateinthesameindustry.Theyhaveverysimilarcharacteristicsexceptfortheirdividend
payoutpolicies.Bothcompaniesareexpectedtoearn$3persharethisyear;butCompanyD(
Practice questions #1 Chapter 3, 4
BUS 314, Spring 2016
Joonho Kim
1) A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased.
What is the present value (PV) of this perpetuity on the date that it is purchased, given th
Bonds and Stock
Westlake Bond
Coupon
Matures in _ years
Market closing price (% of par)
Yield to maturity
Eastbend Bond
Coupon
Matures in _years
Investors' required yield
Par
Intrinsic value
Sommerset Bond
Coupon
Matures in
Purchased in
Purchased for (%of