Practice Final Exam Questions
This practice final exam is, again, not full-length (it should take about 45-60 minutes for those
comfortable with the material); however, it provides examples of the types of questions which I
may ask broken down into three
Problem Set #2: TVM and Bond Pricing 1. Which one of the following is the correct formula for the future value of $500 invested today at 7 percent interest for 8 years? A. FV = $500/[(1 + 0.08) 7] B. FV = $500/[(1 + 0.07) 8] C. FV = $500/(0.07 8) D. FV =
Problem Set (Chapters 8 and 9)
Capital Budgeting Decision-Making Techniques
1. The net present value of an investment represents the difference between the investment's:
A. cash inflows and outflows.
B. cost and its net profit.
C. cost and its market valu
1. Your grandparents just gave you a gift of $15,000. You are investing this money for 12 years at 6
percent simple interest. How much money will you have at the end of the 12 years?
PV=15,000, N=12, K=6
FV=$30,182.95
2. Jim just deposited $13,000 into hi
Problem Set (Chapters 4 7) - AK
TVM, DCF, Bond, and Stock Valuation
1. Which one of the following is the correct formula for the future value of $500 invested today at
7 percent interest for 8 years?
A. FV = $500/[(1 + 0.08) 7]
B. FV = $500/[(1 + 0.07) 8]
Chapter 09 - Making Capital Investment Decisions
Chapter 09
Making Capital Investment Decisions
Multiple Choice Questions
1. Any changes to a firm's projected future cash flows that are caused by adding a new project
are referred to as which one of the fo
Problem Set #3 Extra
1. Investors require a 4 percent return on risk-free investments. On a particular risky investment,
investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent. What
is this excess return called?
A.
FinanceChapter9StudyGuide:
1. Aprojecthassalesof$462,000,costsof$274,000,depreciationof$26,000,interest
expenseof$3,400,andataxrateof35percent.Whatisthevalueofthedepreciationtax
shield?
a. Depreciationtaxshield=$26,0000.35=$9,100
b. Depreciationtaxshield=
83
1.4
96
Suppose a stock had an initial price of $78 per share, paid a dividend of $1.25 per share during the year, and had an ending share price of $87. Compute the percentage total return
0.01686747 0.15662651
1.69%
15.66%
17.35%
Total return = 13.14%
#1
Lycan, Inc., has 7.8 percent coupon bonds on the market that have 7 years left to maturity. The bonds make annual payments.
Required: If the YTM on these bonds is 9.8 percent, what is the current bond price?
Current bond price
$
901.99 1%
Explanation:
Question #3 Final
Question #11
PMT
1000
i
0.064
12
n
1000
2.10522993
1.10522993
17.2692176
17269.2176
Thus bob will have $17,269.22 on his IRA account on his 35th birthday.
On his 65th birthday, he will have
A
17269.22
6.430561
111050.75 Check in Graph ca
Accounting Process
Homework
Foster Delivery Service Company
Balance Sheet
31-May-05
Current Assets Current Liabilities
Cash $ 40,000 Accounts Payable $ 48,000
Accounts Receivable 60,000
Supplies on Hand 28,000
Prepaid Insurance 9,600
Prepaid Rent 24,000
C
Exam 2 Formula Sheet
Econ 103
Summer 2015
1. Income = Consumption + Savings
2. APC =
Consumption
Income
3. MPC =
Change in Consumption
Change in Income
and APS =
=
Savings
Income
Consumption
Income
and MPS =
Savings
Income
4. MPC + MPS = 1 and APC + APS =
Introduction to Finance
Chapter 1 Notes
The Four Basic Areas of Finance:
Corporate Finance
Investments
Financial Institutions
International Finance
Financial Management Decisions:
Capital Budgeting: Process of planning/managing a firms long-term investmen
FINC311 Lecture Notes
Chapter 10
Introduction to Capital
Market History
Chapter 10 outline
10.1 Returns
10.2 The Historical Record
10.3 Average Returns: The First Lesson
10.4 The Variability of Returns: The
Second Lesson
10.5 More on Average Returns
10.6
Review Return
Historical data tells us:
Arithmetic average return: Return earned in an average
period over multiple periods
T
yearly ret urn
Historical Average Ret urn i1
T
Geometric average return: buy-and-hold compound return
per period over multiple p