PARTA:MultiplechoiceQuestions,3pointsforeach,upto60pointsintotal.
1.BythehistoryrecordforU.S.capitalmarket,_hadthesmallestaverage
annualreturn,and_hadthegreateststandarddeviation(totalrisk)ofreturns.
a.
b.
c.
d.
e.
Large company stocks; Small company stoc
Question 1:
Convertible bonds:
Type: Multiple Choice
Points Awarded: 1/1
Your Answer(s):
Can be exchanged for shares of common stock of the issuer prior to maturity
Question 3:
You buy 22 January ethanol contracts at 1.711. The contract is defined as 29,
Question 2:
The spot price of silver is $23.72; the four month copper future is trading at 20.00. To arbitrage you would
Type: Multiple Choice
Points Awarded: 1/1
Your Answer(s):
Short spot silver and buy silver futures
Question 2:
Ralphs Refinery explor
Hello All,
Thank you for accepting your invitation to this document. I originally made this document
with the intention of passing it along to help as many Fin 300 students as possible. So In the
U.S., commercial paper can be either dealer placed, which
Question 2:
The difference in the structure of U.S. Treasury Notes and Bonds from U.S. Treasury bills is:
Type: Multiple Choice
Points Awarded: 1/1
Your Answer(s):
Notes and Bonds pay interest every six months, Bills pay interest at maturity
Question 3:
Problem 1:
Net Working Capital
Liabilities
Inventory
$2,710
$3,950
$3,420
Current Ratio
Quick Ratio
1.55
0.69
Sales
Total Assets
Total Debt
Profit Margin
$18,000,000
$15,600,000
$6,300,000
8%
Problem 2:
Net Income
ROA
ROE
$1,440,000
9.23%
15.48%
Accounts
Problem 1:
Assets
Current Assets
Net Fixed Assets
Liabilities
$4,800 Current Liabilities
$27,500 Long-term Debt
Shareholders' equity
Total Assets
Net Working Capital
$32,300 Total Liabilities
$600
Problem 2:
Sales
Costs
Depreciation
Earnings before intere
Problem 1: Dividend
Constant Growth Rate
return on stock
Years
Years
Current Price
Price in 3 Years
Price in 15 Years
$1.45
6%
11%
3
15
$30.74
$36.61
$73.67
Problem 2: Dividend
Constant Growth Rate
Current sale price
Required Return
$1.89
5%
$38
9.97%
Pro
Problem 3:
Year
0
1
2
3
4
Cash Flow Project A
-60,000
23,000
28,000
21,000
8,000
Cash Flow Project B
-70,000
15,000
18,000
26,000
230,000
Payback:
2.43
3.05
Buy Coastal, Inc. should accept Project A.
Problem 9:
Project Annual Cash Flow
for # of years
Cost
Bryant Crouch
Financial Analysis Paper
Current Assets
Current Liabilities
Current Ratio (CA/CL)
Caterpillar Inc.
34,418,000
26,303,000
1.31
John Deere
42,135,800
20,569,500
2.05
Cash
Current Liabilities
Cash Ratio (C/CL)
Caterpillar Inc.
6,460,000
26,303,
PART I
Problem 1:
A
Problem 2:
C
Problem 3:
A
Problem 4:
C
Problem 5:
D
Problem 6:
C
Problem 7:
D
Problem 8:
C
Problem 9:
A
Problem 10:
C
Problem 11:
A
Problem 12:
D
Problem 13:
B
Problem 14:
D
Problem 15:
A
Problem 16:
D
Problem 17:
E
Problem 18:
C
Probl
Problem 1:
Land Bought for 6 years ago:
Land Current Value:
New Manufacturing Plant Cost
Site Grading Cost
Cash Flow Amount
$5,000,000
$5,300,000
$12,500,000
$770,000
$18,570,000
Original cost to puchase the land ($5M) is a sunk cost. The current value of
Problem 3:
Stock
Stock X
Stock Y
Stock Z
Expected Return
Problem 11:
Stock
Stock Q
Stock R
Stock S
Stock T
Portfolio Beta
Investment
35%
25%
30%
10%
1.06
Problem 13:
Beta
Market Expected Return
Risk-Free Rate
Expected Return
1.05
10%
3.80%
10.31%
Problem
Problem 12:
ROA
Payout Ratio
Plowback Ratio
Internal Growth Rate
7.00%
25.00%
75.00%
5.54%
ROE
Payout Ratio
Plowback Ratio
Sustainable Growth Rate
14.00%
30.00%
0.70
10.86%
Problem 14: Profit Margin
Capital Intensity Ratio
Debt-equity Ratio
Net Income
Div
Problem 6:
Total College Cost
Amount to invest
Annual Interest Rate needed
300,000.00
65,000.00
8.87%
Problem 7:
Interest Rate
Double Value
Quadruple value
6.50%
11.01
22.01
Ferrari Cost
Investment
Interest Rate
Number of Years
$190,000.00
$40,000.00
4.80
Problem 4:
Investment
Years
Years
Years
Return
Present Value of Investment at 15 years
Present Value of Investment at 40 years
Present Value of Investment at 75 years
$6,100.00
15
40
75
6%
$59,244.72
$91,782.41
$100,380.67
Problem 6:
Annual Revenue
Years
Score
Krishna Thaker - 11/18/2015 04:06 PM
Your score on this attempt: 3 out of a possible 15 ( 20.0%)
Graded Score: 3 out of a possible 15 ( 20.0%)
Completion Time: 15 minutes 2 seconds
Question Results
Question 1:
Tar Sands Oil & Gas is currently tradin
Question 1:
Corporations with publicly owned securities must file financial reports with the SEC that are
prepared in
accordance with GAAP.
Type: True or False
Points Awarded: 1/1
Your Answer(s):
True
Question 2:
We expect a return on the market of 10.4%.
Krishna Thaker - 10/20/2015 01:51 PM
Your score on this attempt: 10.5 out of a possible 15 ( 70.0%)
Graded Score: 10.5 out of a possible 15 ( 70.0%)
Completion Time: 11 minutes 12 seconds
Question 1:
Mortgage pass-through securities such as Ginnie Mae par
Score
Krishna Thaker - 11/12/2015 03:54 PM
Your score on this attempt: 9 out of a possible 15 ( 60.0%)
Graded Score: 9 out of a possible 15 ( 60.0%)
Completion Time: 12 minutes 48 seconds
Question Results
Question 1:
The options strategy of a Long Straddl
Question 1:
$477.85675 rounds to
Type: Calculated
Points Awarded: 1/1
Your Answer(s):
$ 477.86
Question 2:
Aunt Mabel promised to give you $1000 when you successfully complete your freshman year,
$3000 when you successfully complete your sophomore year,
Score
Krishna Thaker - 10/27/2015 10:01 PM
Your score on this attempt: 8 out of a possible 15 ( 53.3%)
Graded Score: 8 out of a possible 15 ( 53.3%)
Completion Time: 4 minutes 18 seconds
Question Results
Question 1:
The spot price of copper is $3.90; the
Score
Krishna Thaker - 11/05/2015 08:32 PM
Your score on this attempt: 7.5 out of a possible 15 ( 50.0%)
Graded Score: 7.5 out of a possible 15 ( 50.0%)
Completion Time: 19 minutes 20 seconds
Question Results
Question 1:
Susan Investor manages an equity p
PART I
Problem 1:
A
Problem 2:
C
Problem 3:
A
Problem 4:
C
Problem 5:
D
Problem 6:
C
Problem 7:
D
Problem 8:
C
Problem 9:
A
Problem 10:
C
Problem 11:
A
Problem 12:
Problem 13:
B
Problem 14:
D
Problem 15:
A
Problem 16:
D
Problem 17:
E
Problem 18:
C
Problem
Bryant Crouch
Principles of Financial Management
Spring 2016 Chapter 1
1.
-What long-term investments should you take on? That is, what lines of business will you be in and what
sorts of buildings, machinery, and equipment will you need?
An example of a b
Problem 3: bond par value
years to maturity
coupon rate
yield to maturity
Current Price of bond
Problem 4: Bond Outstanding Sale Price
Bond Par Value (FV)
Coupon Annual Rate
years to maturity (N)
PV
PMT
Yield to Maturity (using calculator)
Problem 6: Par
Question Results
Question 1:
You purchase a $3,000 9.250% coupon Treasury Bond maturing February 15, 2046. The bond is priced
to yield 5.750% and settles September 18, 2015.
Type: Calculated
Points Awarded: 3/3
Your Answer(s):
*
*
*
The base price of the