2.5 out of 2.5 points
Deposits placed in foreign banks that remain denominated in U.S. dollars are called:
A mercantile credit bureau serves primarily as a (n):
May 3, 2016
Homework Assignment 2
1. What is the present value of the following uneven cash flow stream $50, $100,
$75, and $50 at the end of Years 0 through 3? The appropriate interest rate is
10%, compounded annually.
April 19, 2016
Homework Assignment 1
1. What is the free cash flow for 2014?
NOPAT=EBIT (1-Tax Rate)
NOPAT= $502,640 (1-0.4)
NOWC= Operating current assets-Operating current Liabilities
BUDGET PLANNING AND CONTROL
1. Describe the company that you currently work for, have previously worked for, or
would like to work for in the future. Determine at least two (2) compelling reasons
that this company should prepare and manage a budget. Predi
Homework Assignment 2 Week 3
Current GDP: 73,502 trillion (2015)
GDP Growth %: 2.466% annually (2015)
Federal Debt: $19,519,932,367,847 as of Oct. 2016
Federal Deficit: 503 billion as of last budget appr
Homework WK 8
Cash and Equivalent
Other Current Assets
Total Current Assets
Homework WK 6
Chapter 8 Daily Question 1:
Interest Rates are the fluctuations the ups and downs in market values of fixed rate debt tools as
market interest rates change over time.
How is interest rate deter
Homework WK 7
Chapter 11 any 10 DQs
Q1- Investment bankers have the experience in selling and distributing securities.
Investment bankers can help issuers design a security, obtain broad distribution and
Homework Assignment 3 Week 4
Chapter 9 Example 1
A. Automobile Loans at the end of 2015 was 4% for a 4-year term and 4.05% for a 5year term. For credit cards through a commercial bank in 2015 the interest
Chapter 4: Exercise 2
Answer: Some of the Federal Reserve Banks most important tasks are to provide loans to
depositories in times of need. A loan can be made by having a promissory note from the
Lisa and Bob
Lisas contribution started and ended before Bobs and then Bobs will continue without Lisaa
so they can combine as a single investment where 46 contributions were made over 45 years.
Homework WK 9
Chapter 15 P1:
A: Operating Cycle = Inventory Period + Receivable Period
(40days+15 days) + 35 days = 90 days * # of turns per year = 36590
= 4.06 turns per year
B: Inventory Period = Inventor
Homework Week 5
a. 5% for 10 years = 5000/ [1+(.05*10)] = $3,333.33
b. 7% for 7 years = 5000/ [1+(.07*7)] = $3355.70
c. 9% for 4 years = 5000/ [1+(.09*4)] = $3676.47
Year 1 = 5,000
Year 2 =
1) Students that expect interest rates to rise should expect bond prices to decline in
the future, and therefore not recommend that investors purchase bonds today.
Conversely, students that expect interest rates to decrease should expect bond
prices to ri
2) There is a high positive correlation between mortgage rates and long-term
government security rates. Mortgage lenders that provide fixed-rate mortgages could be
adversely affected by rising interest rates, because their cost of financing the mortgages
10- A long hedge represents a purchase of financial futures and is appropriate when assets are
more rate-sensitive than liabilities. A short hedge represents a sale of financial futures and is
appropriate when liabilities are more rate-sensitiv
1- Investors can value a stock by applying the industry PE ratio to the firms expected earnings
for the next year. This method implicitly assumes that the growth in earnings in future years
will be similar to that of the industry.
This method h
3) Moral hazard was a serious problem during the credit crisis because the government was
attempting to prevent failures of banks. Yet, some critics argued that the government should not bail
out banks because it could send a signal that banks
1) The origin of the Federal Reserve System goes back to 1800s. They were two
attempts to establish a central bank in the U.S. After the panic of several banks,
the 1913 Federal Reserve Act was promoted and passed by 12 districts
3) Ratings are assigned to designate the degree of default risk associated with commercial
paper. Companies issuing commercial paper pay rating services in order to have their paper
9) The secondary market for Treasury bills is
1) Common stockholders are permitted to vote on key matters concerning the firm
such as the election of the board of directors, authorization to issue new shares
of common stock, approval of amendments to the corporate charter, and
1) The 1950s and 1960s were part of the Bretton Woods era, in which currency
values were maintained within 1 percent of a specified rate. In 1971, the
Smithsonian Agreement called for a widening of the boundaries to 2-1/4
percent around each currencys spe
FIN 540 Homework Chapter 25
1. For markets to be in equilibrium (that is, for there to be no strong pressure for prices to
depart from their current levels),
a. The past realized rate of return must be equal to the expected rate of return; that is, .
FIN 540 Homework Chapter 22
1. Which of the following statements is most CORRECT?
a. The smaller the synergistic benefits of a particular merger, the greater the scope for
striking a bargain in negotiations, and the higher the probability that the merger
FIN 540 Homework Chapter 23
1. Which of the following are NOT ways risk management can be used to increase the value of a
Risk management can help a firm maintain its optimal capital budget.
Risk management can reduce the expected costs
Week 7 Homework Chapter 27
A firm's credit policy consists of which of the following items?
Credit period, cash discounts, credit standards, collection policy.
Credit period, cash discounts, receivables monitoring, collection policy.
FIN 540 Homework Chapter 26
1. Which of the following is NOT a real option?
a. The option to buy shares of stock if its price goes up.
b. The option to expand into a new geographic region.
c. The option to abandon a project.
d. The option to switch the ty
Financial Markets and Institutions Part 1
Financial Markets and Institutions
Financial Markets and Institutions
In finance bonds are debt obligations that have long -maturities that are usually given by