An investment project provides cash inflows of $875 per year for eight years. What is the project pa
3.66
years
What if the initial cost is $4,600.
5.26
years
9.03
years
What if it is $7,900?
years. What is the project payback period if the initial cost i
Lauren Trezise
Fin-325
June 9th, 2016
Module 2 Reflection and Self-Assessment
1. What was your score on the quiz?
100% on both quizzes.
2. What questions gave you a hard time? Why
#10 regarding the comparison of Swing, Inc. and Golf, Inc. was interesting
Lauren Trezise
Fin-325
June 9th, 2016
Module 2 Reflection and Self-Assessment
1. What was your score on the quiz?
93% and 100%
2. What questions gave you a hard time? Why
#3 on Chapter 4 gave me a hard time: If a lump sum of $5,000 is invested for four ye
Lauren Trezise
Fin-325
June 2nd, 2016
1) Go to the following website http:/finra-markets.morningstar.com/MarketData/Default.jsp
From this page, search for INTC.AA. This a bond issued by Intel Corp.
When was this bond issued?
9/19/2011
What was the size in
Financial Math on
Spreadsheet and Calculator
Version 4.0
2002 Kent L. Womack and Andrew Brownell
Tuck School of Business
Dartmouth College
Table of Contents
INTRODUCTION .1
PERFORMING TVM CALCULATIONSTHE GENERAL FRAMEWORK.2
CALCULATING FUTURE VALUE .3
CO
Lauren Trezise
Fin-325
June 1st, 2016
McGee Cake Company Case Study
1. What are the advantages and disadvantages of changing the company organization from a
sole proprietorship to an LLC?
If the company decided to become an LLC, they would reduce the liab
Lauren Trezise
Fin-325
June 2nd, 2016
Chapter 1 Reflection and Self Assessment
1. What was your score on the quiz?
100%
2. What questions gave you a hard time? Why
I get a little confused by LLC and a corporation. I think its because the book doesnt
outli
a.
How much will be in the account at the end of 8 years in interest if compounded:
1.
2.
3.
4.
Annually?
Semiannually?
Monthly?
Continuously?
$15,938.48
$16,047.06
$16,141.43
$16,160.74
b.
Calculate the effective annual rate (EAR) for 1 - 4 above
1.
2.
3
1.
Calculate the price of a $1,000 face value 10 yr, 4% coupon bond with an
PV
FV
Rate
Nper
PMT
$675.56
1000
0.04
10
$1,210.87
Is the bond selling at a discount, premium, or par value?
0 yr, 4% coupon bond with annual payments if investments of similar qu
Lauren Trezise
Fin-325
June 9th, 2016
DuPont Identity
1. Calculate the values of the three components of the DuPont identity.
a. Profit Margin: 0.148
b. Total Asset Turnover: 0.986
c. Equity multiplier: 2.856
d. ROE = .42
2. Why is the DuPont Identity so
Lauren Trezise
Fin-325
June 1st, 2016
1. As noted in the article, PepsiCo and Coca Cola obviously had differing strategies to
achieve this goal. Compare and contrast the strategies of the companies. In your
opinion, why was Mr. Goizueta's strategy more su