FINANCIAL MANAGEMENT FOUNDATIONS
QUIZ 1: SEPTEMBER 2016
1. Which of the following are not stakeholders of a corporation?
a. Shareholders
b. Employees
c. Customers
d. Competition
e. Local communities w
Financial Management Foundations
MID-TERM EXAM
February 1, 2014
NAME_
_
1.
Which one of the following business types is best suited to raising large amounts of capital? (37)
A. sole proprietorship
B.
1.
A portfolio is:
A.
a group of assets, such as
bonds, held as a collective
investor.
B. the expected return on a risky asset.
C. the expected return on a collection of risky assets.
D. the variance
FINANCIAL MANAGEMENT FOUNDATIONS FINAL EXAM PART 2 CH21-31
1.
In a lease arrangement, the owner of the asset is:
A.
the
lesser.
B. the lessee.
C. the lessor.
D. the leaser.
E. None of these.
2.
In a l
Homework Set #2
Multiple Choice Questions:
1. Capital market instruments include
a. commercial paper.
b. corporate bonds.
c. stocks.
d. all of the above.
e. only b and c.
Ans : e
2. The financial mark
Name: KRISHNAN RAMACHANDRAN
Economics Questions: complete two questions from each set of three.
Set One:
1. What is the anticipated effect on equilibrium price and quantity for flowers
following each
FIN 599
Mid Term Exam
50 multiple choice questions
1. The average compound return earned per year over a multi-year
period is called the _ average return.
a. arithmetic
b. standard
c. variant
d. geome
Name: KRISHNAN RAMACHANDRAN
Economics Questions: complete two questions from each set of three.
Set One:
1. What is the anticipated effect on equilibrium price and quantity for flowers
following each
EACH PROBLEM IS WORTH UP TO FIVE POINTS - TOTAL POSSIBLE OF 60 POINTS.
Section One: Complete two of the following three problems.
Question One:
A recently incorporated firm is about to offer stock for
FIN 599 Foundations of Financial Management
Summer Session 2017
July 8, 22 and August 5, and 19
Dr. Kirk D. Johnson
Email:
Phone:
Office Location:
Office Hours:
[email protected]
225-6353 (office);
and
Homework Set #1
Multiple Choice Section:
1. What is the present value of $10,000 to be received in 8 years? The interest rate is 7%.
(Round your answer to the nearest dollar.)
a. $5,820.
b. $5,835.
c.
Marginal Analysis
Decision making process comparing perceived costs and benefits of alternatives and selecting
those that appear to have the greatest relative value
Terminology: utility, costs, opport
Homework Set #2
Multiple Choice Questions:
1. Capital market instruments include
a. commercial paper.
b. corporate bonds.
c. stocks.
d. all of the above.
e. only b and c.
2. The financial market in wh
I CALCULATION EXAMPLES
Depending on your version of Excel, you might get errors messages with rate calculation problems.
Variables
n=
i=
pv=
pmt=
fv=
EX. 1
Settings
b/e
# p/yr
Variables
n=
i=
pv=
pmt=
FV Calculation Examples
Note how different the problems sound, but the logic sequence is the same.
EX. 1
Settings
Variables
end
1 p/yr
n=30
i=12.2
pv=0
pmt = -2000
fv = ?
i=2.1%
Settings
Variables
end
EACH PROBLEM IS WORTH UP TO FIVE POINTS - TOTAL POSSIBLE OF 60 POINTS.
Section One: Complete two of the following three problems.
Question One:
A recently incorporated firm is about to offer stock for
Homework Set #1
Multiple Choice Section:
1. What is the present value of $10,000 to be received in 8 years? The interest rate is 7%.
(Round your answer to the nearest dollar.)
a. $5,820.
b. $5,835.
c.
Formulas for Financial Management Foundations Midterm
Prepared by
Fatma Abdel-Raouf
At equilibrium,
=
GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (NX)
Net Exports (N
Financial Management Foundations FIN599
HB 10BII Calculator Steps for Final Exam
FV of Cash Flow
Interest Rate
shif
C All
shif
I/YR
N
PV
shif
P/YR
FV
P/YR
I/YR
PV of Cash Flow
C All
shif
N
FV
PV
Time
In-Class
Options
1. T bills currently yield 4.8%. Stock in Nina Manufacturing is currently selling for $63 per
share. There is no possibility that the stock will be worth less than $61 per share in on
Jing Liu
FIN599 Case Study 3
Valuing Rajat Bhatias Business Plan
According to the professors comment provided in the case study, all cash flow valuation
method should provide identical valuation
FINANCIAL MANAGEMENT FOUNDATIONS
CLASS THREE
EXAMPLE PROBLEMS
1. (6-3) Down Under Boomerang Inc. is considering a new three year expansion project that
requires an initial fixed asset management of $1
Name: Jing Liu
Course: FIN599
Assignment: Case Study 1
Step 1: Monthly Mortgage Payments
Loan required after 20% cash down payment: $600000 x 80% = $480000
Considering the 4% annual rate, using PMT fu
Jing Liu
FIN599 Case Study 2
CSI Financial Statement 2014
Below is my match for the companies and my reasoning:
Company Name
Rationale
1. No R&D spend
1 A Coca-Cola
2. Consider
Present Value
1. First City Bank pays 8% simple interest on its savings account balances, whereas Second City
Bank pays 8% interest compounded annually. If you made a $5,000 deposit in each bank, how
Year
2016
Apple
Google
Current Ratio
Quick Ratio
Cash Ratio
Net Working Capital
Internal Measure
1.35
1.22
6.01
5.99
0.59
0.03
23.45
2.35
61.62
131.11
7.74
8.71
1.02
2.85
14.93%
36.90%
12.37%
15.02%
T
Problem Type:
Note how different these problems sound, but the logic sequence is the same.
Calculating the length of a contract:
Ex. 1
Settings
begin
12 p/yr
Variables
n = ?
I = 7.5%
PV = 0
PMT = 20
F
Calculating the Present Value of Future Cash Flow(s)
DCF valuation models are very popular for cash generating investments.
This calculation is useful in many applications:
Ex. 1
Settings
begin
12 p/y
PMT Calculation Examples
These problems sound very different from one another, but the logic sequence is the same.
Settings
b/e
# p/yr
Settings
b/e
# p/yr
Variables
n=
i=
pv=
pmt=
fv=
EX. 1
Variables
FV Calculation Examples
Note how different the problems sound, but the logic sequence is the same.
Settings
Variables
end
1 p/yr
n=
i=
pv=
pmt =
fv = ?
EX. 1
Suppose someone started saving $2000/year