1.
Award: 10.00 points
MC Qu. 121 Wine and Roses, Inc. offers.
WineandRoses,Inc.offersa9.0percentcouponbondwithsemiannualpaymentsandayieldtomaturity
of9.78percent.Thebondsmaturein7years.Whatisthemarke
FINA3310- Chapter 4
Practice problems
1.
Professor: Alexandra K. Theodossiou
Fall 20010
What is the future value of $15,000, invested today, if it is invested at 7.5% compounded
annually for five year
FINA3310 Chapter 4
Extra practice problems
1.
Professor: Alexandra K. Theodossiou
Fall 2010
The preferred stock of Placer Corp. currently sells for $44.44 per share. The annual
dividend of $4 is fixed
The stock of Southern United is priced at $40 a share and has a dividend yield of 2.1 percent. The firm pays constant annual
dividends. What is the amount of the next dividend per share?
$0.875
$0.210
Chapter5ConnectHomeworkAssignment
1. Cromwell Enterprises is acquiring Athens, Inc. for $899,000. Athens has
agreed to accept annual payments of $210,000 at an interest rate of 8.5 percent.
How many y
You expect to receive $20,000 at graduation one year from now. You plan on investing it at 6 percent until you have $100,000.
How long will you wait from now?
28.62 years
By definition, a bank that pa
Financial leverage:
increases the potential return to the shareholders.
Cash flow to stockholders is defined as:
dividends paid minus net new equity raised.
Which one of the following is the tax rate
Julie is borrowing $12,800 to purchase a car. The loan terms are 36 months at 7.5 percent interest. How much interest will
she pay on this loan if she pays the loan as agreed? Round your answer to the
Windswept, Inc. 2010 Income Statement ($ in
millions)
Net sales
$ 9,810
Less: Cost of goods sold
7,960
485
Less: Depreciation
Earnings before interest and taxes
$ 1,365
112
Less: Interest paid
Taxable
The annual interest divided by the face value of a bond is referred to as the:
coupon rate
A bond has a $1,000 face value, a market price of $1,045, and pays interest payments of $80 every year. What
1) Your portfolio has a beta of 1.33. The portfolio consists of 14 percent U.S. Treasury
bills, 25 percent stock A, and 61 percent stock B. Stock A has a risk level equivalent to
that of the overall m
FIN 5320 Financial Management CHAPTER 5
Week Five Assignment
Your assignment for this week is to complete the following questions and problems from Chapter 5. Please submit
your complete assignment in
3. The weighted average cost of capital is defined as the weighted average of a firm's.
B. cost of equity and its aftertax cost of debt
5. Kate is the CFO of a major firm and has the job of assigning
Kyle Electric has three positive net present value opportunities. Unfortunately, the firm has not been able to find financing for
any of these projects. Which one of the following terms best describes
5) Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8.4 percent.
The firm has an aftertax cost of debt of 5.2 percent and a cost of equity of 10.4 percent.
What debt-equity ra
Exam 2: Chapters 6,9,10,11,12
CHAPTER 6 DEFINITIONS:
Continuous Probability Distribution
Realized Rate of Return- (r hat) (little line over r)Risk
Risk Aversion- basic premise that investors like retu
Quiz 5 (A)
This is your last semester of school and it is time to start considering you student loan balance. You have
borrowed $44,000 with a stated annual rate of 6% for 10 years (monthly payments).
Quiz 4 (A)
A. Your monthly payment is $675 per month. You financed this over 20 years at 6% (monthly
payments). How much did you borrow?
N
I
PV
PMT
FV
B. You want to save for retirement. You can save
Quiz 4 (B)
A. Your monthly payment is $675 per month. You financed this over 25 years at 6% (monthly
payments). How much did you borrow?
N
I
PV
PMT
FV
B. You want to save for retirement. You can save
FINA 5320.001
Quiz 1
1. What are the four financial statements?
2. What are retained earnings?
3. Where can this years depreciation be found?
ANSWERS:
1. What are the four financial statements?
Incom
Quiz 9-14-15
FINA 5320
II. (2 pts for each ratio) Given the financial statements provided, calculate the ratios below:
(show numbers used)
a. Current Ratio
CA
CL
$ 115,750
=2.5
$ 46,300
i. Return on A
Quiz 5 (B)
This is your last semester of school and it is time to start considering you student loan balance. You have
borrowed $44,000 with a stated annual rate of 6.5% for 10 years (monthly payments
Question 1.1. Determining what consumer attitudes are with regard to a particular product
and its advertising would be part of the _ function in marketing research. (Points : 2)
descriptive
diagnostic
QUIZ 6
1. Willard Mortuary bonds have 10 years remaining to maturity. Interest is paid semiannually. The
bonds have a $1000 par value and a 9% coupon rate. The bonds have a price of $850.
a. What is t
Formulas for Midterm 4
Chapter 10
rd = YTM (1 T ); rp =
D
D
D
; rr = 1 + g ; rr = 1 + g
P0, net
P0
P0,net
WACC = wD rD + wp rp + w s rr or s where
BPj =
n
w =1
i =1
i
AFj
wj
Chapter 11
Operating break