Homework Chapter 5
Multiple Choice
Identify the choice that best completes the statement or answers the question.
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1. What would the future value of $100 be after 5 years at 10% compound interest?
a. $161.05
b. $134.54
c. $127.84
d. $151.29
e
1
Chapter 7 Bonds and their valuation
True-False
1. Because short-term interest rates are much more volatile than long-term rates, you would, in the real world,
be subject to much more interest rate risk if you purchased a 30-day bond than if you bought a
CHAPTER 2
FINANCIAL MARKETS AND INSTITUTIONS
Multiple Choice: True/False
i.
A financial intermediary is a corporation that takes funds from investors and then provides those
funds to those who need capital. A bank that takes in demand deposits and then us
Chapter 1
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
_
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1. Which of the following statements is CORRECT?
a. One of the disadvantages of incorporating your business is that you become subject to
li
Homework chapter 10
Multiple Choice
Identify the choice that best completes the statement or answers the question.
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1. Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: r RF
5.5%; RPM 6.0%; an
Homework Chapter 11
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. Thomson Electric Systems is considering a project that has the following cash flow and WACC data. What is
the project's NPV? Note that
Chapter 6: Interest Rates
Multiple Choice
Identify the choice that best completes the statement or answers the question.
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1. Suppose 1-year T-bills currently yield 5.00% and the future inflation rate is expected to be constant at 3.10%
per year.
Homework Chapter 8
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_ 1.
T. Martell Inc.'s stock has a 50% chance of producing a 30% return, a 25% chance of
producing a 9% return, and a 25% chance of producing
3/19/15 10:57 PM
2/20/14
Chapter 6 Notes
4 factors that affect interest rate
Production opportunities
It is about how fast a company can make a profit on the product
When the production oppurtunities go up than the demand for money goes
up which means tha
Valoracin de Bonos
Prof. Arturo Figueroa
1
Valoracin de bonos
Ecuacin general de valoracin:
present value
Value
present value
=
+
of bond of interest payments of maturity value
2
El yield-to-maturity
3
Cuando se valoran los flujos de efectivo de
Cuatra Tarea
Diane Agosto
FV
$814.45
Problema#1
Problema#2
annual
semestral
mensual
1
2
12
$1,048.87
$1,049.02
$1,049.15
Problema #2
*Se observa que de mane
cantidad que aumenta en
de anera semestral el aum
significativo pero si obser
aumento mensual defi
Problema 1
Problema 2
Problema 3
Problema 4
Problema 5
Problema 6
Problema 7
Problema 8
Problema 9
$168,646.82
$177,315.27
$62,749.10
una anualidad tiene un valor al vencimiento de 40000 calcula cual seria el valor al vencim
$46,793.72
$22,623.81 pmt annu
Homework Chapter 8: Risk and Rates of Return
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
_
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2. An investor has a 2-stock portfolio with $50,000 invested in Palmer Manufacturing and $50,000 in Nic
Finance hw
8-2
$4 million investment fund
Required rate of return= 14% (rm)
Risk free rate= 6% (rrf)
Funds required rate of return?
A
$400,000
1.50
B
$600,000
(.50)
C
$1,000,000
1.25
D
$2,000,000
.75
Rs(A)= 6%+(14%-6%)*1.50= 18%
Rs(B)= 6%+(14%-6%)*(.50)=
Dear Client,
I am writing you this letter to ensure that you are well informed on this tax manner that you are
currently trying to sort out, as well as informing you that I am here in all ways that I can be in
order to properly assist you in this manner.
FDIC insured financial institutions in the 50 states of U.S. in the year 2006
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
150.52
19.911482484
107.5
83
140.79544288
19823.356735
2.868
New home mortgage yields
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
8.046666667
0.352643426
7.71
9
2.518377785
6.342226667
0.819712302
0.881863332
11.45
3.69
15.14
410.38
51
Frequen
e 4.1 The stock prices of 100 best small companies in dollars.
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
37.51
2.020275759
37
39
20.20275759
408.1514141
5.469968989
1.603289333
130
Bryan Einstoss-Rodriguez
The movie The Big Short Tells the story of the 08/09 financial crisis in the United
States economy. The story goes back and forward between how Mark Baums fund, Jamie
Shipleys fund and Michael Burry made a large amount of money du
Question 7-2
Price @ 7%
%
change
($1,134.20) ($1,210.71)
6.75%
Price @ 8%
10 year @
10% annual
coupon
10- year
zero
5- year
zero
30- year
zero
($463.19)
($508.35)
9.75%
($680.58)
($712.99)
4.76%
($99.38)
($131.37)
32.19%
Work:
10 year at 10% =PV(8%,10,100
Single CF/Single and Multi Period
FV=PV(1+r)^N
PV
r
N
100
5%
1
PV=FV/(1+r)^N
FV
r
N
FV=
105
PV
r=(FV/PV)^(1/N)-1
FV
PV
N
r=
10
5%
3
27230
8.64
N=Log_(1+r)^FV/PV)
FV
105
PV
100
r
5%
100
95.45
1
0.0476689366
5%
N
(number of years)
1
0.6363636364
2.35054
$
0
Price @ 8% Price @ 7%
10 year @
10% annual
coupon
10- year zero
5- year zero
30- year zero
year
FCF (millions)
growth rate
WACC
($1,134.20)
($463.19)
($680.58)
($99.38)
($1,210.71)
($508.35)
($712.99)
($131.37)
0
1
($20)
% change Years to Maturity Price o
Financial Management Notes: Chapter 7
o Bond- A long-term debt contract in which a borrower agrees to make
payments of interest and principal, on specific dates, to the holders of the
bond.
o Bond Markets
Primarily traded in the over-the-counter (OTC) ma
Finance test
Chapter 7
o A long-term debt contract in which a borrower agrees to make payments
of interest and principal, on specific dates, to the holders of the bond.
o Primarily traded in the over-the-counter (OTC) market.
o Most bonds are owned by and
Financial Management Notes
Chapter 1: Fundamentals of Financial Management Concise 8E
o Finance Within the Organization
o Forms of Business Organization
Proprietorship / Partnership
Proprietorship: an unincorporated business owned
by one individual
Par