Solutions to Chapter 4
The Time Value of Money
Note: Unless otherwise stated, assume that cash flows occur at the end of each year.
1.
a.
b.
c.
d.
100/(1.08)10
100/(1.08)20
100/(1.04)10
100/(1.04)20
2
Lianne Barnes
FINA200 Fall 2013, Section X
Case 2 Answers
Question 1 (35 marks)
a) The couple has three financing options to acquire a second car. Calculate the
first months payment under each financi
ADMS3530 3.0
Assignment #1
Assignment #1 Solutions
Instructions:
(1)
(2)
(3)
(4)
(5)
(6)
This assignment is to be done individually. You must sign and submit the
standard cover page supplied as the la
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Assignment #2 Solutions
Question 1 (18 marks)
Blooper Technology Inc. is considering purchasing two machines, A and
B, which are expected to generate $36,000 and $40,000 respectively i
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Assignment # 1 - Solutions
Question 1 (15 marks)
You issue debt of $30,000 on October 1, 2007. You decide to payback this debt by making equal
payments every three months during the next 4 y
AK/ADMS 3530.03 Finance Final Exam
Solutions
Type A Exam
Numerical questions (2 points each)
1. (Q. 5 in B) What is the present value of the following payment stream,
discounted at 8 percent annually:
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Assignment #2
AK/ADMS3530
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Assignment #2 -SOLUTIONS
Instructions:
(1)
This assignment is to be done individually. You must sign and submit the standard
cover page supplied as the la
AK/ADMS3530 3.0
Assignment #1 Solutions
Question 1 (12 marks)
You became incredibly wealthy one day and a huge contributing factor to your success
was the education that youd received at York/Atkinson
Name- Section- ID #-
AP/ADMS 3530.03 Finance
Final Exam
Exam - Solution
This exam consists of 50 multiple choice questions. 2 points each for a total of 100
points. Choose the response which best answ
Name_Section_ID #_
Type A Exam
50 Multiple Choice Questions (Total of 164 marks) made up a follows
32 Calculation Questions (4 marks each for a total of 128 marks)
18 Conceptual Questions (2 marks eac
AK/ADMS
3530 Midterm
Exam Summer
Type A Exam
This exam consists of 28 multiple choice questions and carries a total of 100 points. Choose the
response which best answers each question. Circle your ans
Solutions for Chapter 13
An Overview of Corporate Financing
1.
a.
Authorized share capital = 100,000. Presently 20,000 shares are issued and
outstanding. So 80,000 more shares can be issued without ap
1
Lianne Barnes
Professor Nabil Meslmani
FINA 200 - Personal Finance
October 3rd, 2013
_
Question 1 (30 marks)
Draw up Olivia's December 31, 2012 Personal Net Worth Statement. Note: The ticker
symbol
NIKE
Adidas
Apple
Google
Facebook
Twitter
Canadian Tire
Air Canada
Hudson Bay
Second Cup
October 21st October 24th October 25th October 26th October 27th
51.77
51.87
51.05
51.97
51.89
156.65
155.2
152
Solutions to Chapter 10
Introduction to Risk, Return, and the Opportunity Cost of Capital
1.
return =
dividend + capital gain
initial price
=
2 + (44 40)
= .15 = 15%
40
dividend yield = dividend / ini
Solutions to Chapter 9
Project Analysis
1.
The extra 1 million burgers increase total costs by $.5 million. Therefore, variable
cost = $.50 per burger. Fixed costs must then be $1.25 million, since th
Solutions to Chapter 1
The Firm and the Financial Manager
1.
real
executive airplanes
brand names
financial
stock
investment
capital budgeting
financing
2.
A firm might cut its labor force dramaticall
Solutions to Chapter 5
Valuing Bonds
Note: Unless otherwise stated, assume all bonds have $1,000 face (par) value.
1.
2.
a.
The coupon payments are fixed at $60 per year.
Coupon rate = coupon payment/
Solutions to Chapter 12
The Cost of Capital
1.
The yield to maturity on the bonds (since maturity is now 19 years) is the interest
rate that solves the following equation:
90 annuity factor(r, 19 year
Solutions to Chapter 11
Risk, Return, and Capital Budgeting
1.
a.
False. Investors require higher expected rates of return on investments with
high market risk, not high total risk. Variability of ret
Solutions to Chapter 8
Using Discounted Cash-Flow Analysis to Make Investment Decisions
A General Note: Many of the questions, for which solutions are provided below, require
only that the NPV or IRR
Solutions to Chapter 6
Valuing Stocks
1.
No. The dividend discount model allows for the fact that firms may not currently
pay dividends. As the market matures, and Rogers Wireless Communications
growt
Lianne Barnes
Professor Ellison
FINA200 Fall 2013, Section X
November 28, 2013
Case 3- Covering Chapters 13, 14, 15 and 8
Question 1 (40 marks)
What is Hilary's forecast gross income in the first year