Discussion Board (Mod 2)
Payment vs. Annuity:
1. What is the difference between a series of payments and an annuity?
2. What are specific characteristics of a series of payments that make them an annuity?
As defined in the text, an annuity is a series of
Do not type in these cells. Your answers will copy automatically as you solve the problems.
Question
Answer
1
-483.0829449361
2
-436.7975296227
3
0.09
4
-0.0942408377
5
0.109
6
-543.9337425841
7
200
8A
70
8B
0.0775
9
0.098
10
0.33
11A
-1199.1010503055
11B
Review Test Submission: Quiz 2
Content
User
Eric Gibson
Course
Fall2016-FIN3400-Financial Management-443511
Test
Quiz 2
Started
8/31/16 6:25 AM
Submitted 8/31/16 7:25 AM
Status
Completed
Attempt Score 12 out of 20 points
Time Elapsed 59 minutes out of 1 h
1. How do we measure the returns on our portfolio?
So, let's start with the basics of profiting off investments:
profit = ending value + distributions - original cost
and
return = profit / original cost.
Assuming that a $1M portfolio in a given year earns
Question 1
1. What are the characteristics of financial instruments in terms of standardization and
information?
Question 2
1. Define risk, how risk is measured and how an investor is compensated for risk.
Question 3
1. Describe Basel III and liquidity st
MBA 645, Test 2
Dr. Feng
Name: _
Date:
_
50 * 2 = 100 points
1. Which of the following is not a characteristic of common stock:
a.
b.
c.
d.
has no maturity date
considered a permanent form of long-term financing
has claims on assets prior to those of pref
MBA 645, Financial Management
Homework 6
Dr. Feng
Name: _
Date:
_
1) Understanding internal rate of return
A one period investment requires an outlay of 100 today and will generate $120 a year later.
The required rate of return for the investment is 10%.
MBA 645, HW1
Dr. Feng
Name: Kate Hutflies _
Date:
July 3, 2016_
Q1: Core principles of finance:
1. Explain the core principles of business finance. In particular, explain the goal and major financial
decisions for a business. The core principles of busine
MBA 645, Test 1 - Answer
Dr. Feng
Name:
_
Date:
_
Please finish the test with the attached worksheet. You only need to submit the worksheet.
1
2
3
4
5
6
7
8
9
10
A
B
D
C
C
B
B
D
B
C
11
12
13
14
15
16
17
18
19
20
D
D
D
C
B
A
D
B
C
D
21
22
23
24
25
26
27
28
Prob 3-10
Jackson Products
Balance Sheet
Total Assets
Cash
A/R
Inventory
Total Current Assets
Net plant and Equipment
240,000.00
320,000.00
1,040,000.00
1,600,000.00
800,000.00
Total Assets
2,400,000.00
Total liabilites and stockholders' equity
A/P
N/P
Ot
Now. find out the yield on a non-taxable bond so that after-yields are equal.
The details are as follm's:
Il'ltEl'Et rate on taxable bond = 5.9%
Tax rate = 2.3%
The formula i5 mentioned below:
Tea yield helm 1am: = Interel rate en taxable bend - tax rate
Generally. the yin-Jets on taxable govemment bonds exoeed the yields on non-taxable municipal bonds.
Over the time. this yarianoe has diminished as a lower inoome tax rate l-EdIJEE the appeal of municipal
bonds.
Calmlate the comparable yield on the taxabl
a:
The following details are known:
I'u'lartet prioeofastoelt=525
Strike prioe of the option = 52D
Belling prioe of [all option.= 55
Calmlate the intri n-siou'alue ofthe stool: by using the formula given below:
Intrneie value efeteek = Market priee efetee
I_l -—
bl
The ful luwing details are tnuwn:
Mallet priue u‘f a stud = 5'13
Strike urine uf the uptiun = $20
Selling uriueuf uall uutiun = 55
Calculate the intrinsiutu'alue uf the stud by using the furrnula given beluw:
Intrneie Fall“: efeteek = Market pri
Find out the total oost of the stool: by adding the strike prioe of the option and the current pride of the
option. The dElIE-El rﬁult is 525.
As the maltet pride of the stool: is laser than the total oost of the stock. there would be loss on call option.
Find out the total post of the stool: by adding the strike pride of the option and the ounent pride of the
option. The daired rault is 525.
As the market pl'iL'E of the stool: is hig her than the total post of the stout. there would be gain on bail
option
{c} The current yield measures the return withrespcct to the current market price cfthc
hand. It looks atthc currentprice of the 't:-:u1dinsteac;l ofthe Face value ofthe bond.
Annualinterest paym ent
Marketprice of hon-:1
Current tricldfor Ajﬂx 100
$1030
The current price efthe band can be determined using the ﬁellewing Earn-1111a:
_PMT+FMT+ +PMT+ FF”
a‘me' r;1+z'}u2 n+1)" n+2)"
Given:
Pa = Present ‘i'ﬁiLl e of bond
PIN-['I' = Payment amount
i = Current interest rate
11 = Mime-er of years
The rene
Module 8 Discussion
Modigliani and Miller developed the capital-structure irrelevance position, also sometimes referred to as
the M&M Model, which essentially argues that, in perfect markets, it does not matter what capital
structure a company uses to fin
Do not type in these cells. Your answers will copy automatically as you solve the problems.
Question
Answer
1
-823.3722668724
2
-1076.234815707
3
0.0967359761
4
-0.0942408377
5
0.109
6
-543.9337425841
7
200
8A
70
8B
0.079
9
0.098
10
0.1141176471
11A
1199.
SCHOOL BOARD OF DUVAL COUNTY
NOTICE REGARDING CODE OF STUDENT CONDUCT FOR
SCHOOL YEAR
2015 2016
School
Grade
In order to conserve resources, schools will not distribute paper copies of
the Code of Student Conduct (Code) to every student. You can locate an
Time Value of Money Project
Name: _
Please show all your work if you use the Calculator. If done in Excel, please send me the
spreadsheet / workbook.
1.
What is the market value of the following bond?
Coupon 8%
Maturity date 2038
Interest paid semiannuall
Module 7 Discussion
A potential employee can learn a lot about a company by examining its financial statements. It is
important that prospective employees have a good understanding of whether or not the company
manages its money well. If, by examining the