Review
Bond investors could expect to receive the following cash
flows if holding the bond until maturity:
Face Value: One lump-sum cash flow paid at the maturity
date
Coupon Rate and Coupon Paymen
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 typ
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.
A preferred stock from Duquesne Light Company (DQUPRA) pays $2.10 in annual dividends. If the required return on the preferred stock is 5.4 percent, whats the
value of the stock?
Ultra Petroleum (UPL)
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,
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?
#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 b
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.
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 addi
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 ra
Chapter 5 Notes
Discounted Cash Flow Valuation
Key Concepts
Be able to compute the future value of multiple cash flows
Be able to compute the present value of multiple cash flows
Be able to compute lo
Problem Set (Chapters 2 and 3) - AK
Introduction to Financial Statement Analysis
1. Define the balance sheet identity.
Assets = Liabilities + Shareholder Equity.
2. Define liquidity and list the follo
Finance 311 Midterm 1 Study Guide
CHAPTER 1: INTRODUCTION TO FINANCIAL MANAGEMENT
Basic Areas of Finance
Corporate Finance (Business Finance)
o What investments do you make?
o How do you finance thes
Finance 311 Final Study Guide
Chapter 7: Equity Markets & Stock Valuation
Pricing Stock
Estimating Dividends: Special Cases
If the dividend is constant, then the price is as follows:
P0 = D / R
P0 =
Chapter 1
What is the goal of financial management? Maximize Shareholder Value- this eliminates the
failings of other potential goals
Shareholder value is the present (discounted) worth of: current-p
February 25, 2013
FINC311 Quiz 1
Name:_
UD ID#_
1. The weekly grocery bill for a family of four today is $312.00. If the rate of inflation is expected to be
4% APR compounded annually, what is the exp
Problem Set (Chapters 4 7) - AK
TVM, DCF, Bond Valuation, and Stock Valuation
1. What is the difference between simple interest and compound interest?
Interest-on-interest.
2. Describe the relationshi
Chapter 2 Notes
Financial Statements, Taxes, and Cash Flow
Objectives:
Know the difference between:
Book value and market value
Accounting income and cash flow
Average and marginal tax rates
Know how
2/8/17 Chapter 1
Areas of Finance:
Corporate Finance o Capital budgeting o Capital Structure o Working capital management
o Job opportunities financial planning and analysis, valuation and decision
Midterm #1 Review
Practice Problem Set
Chapters 1-4
September 27, 2017
Chris Lynch 320 Purnell Hall lynchc@udel.edu 302.831.1782
MP-1
1) The primary goal of financial management
is most associated wit
Finance 311
Spring 2017
Assignment 2
Write no more than half a page for each of your answers. Consult as many sources as
you need but refrain from copying answers directly from a textbook or a source,
Finance 311
Spring 2017
Assignment 3
Multiple Choice questions are 2pts each.
1. The yield to maturity on a bond is .
a) below the coupon rate when the bond sells at a discount, and equal to the coupo
Finance 311
Spring 2017
Assignment 1
Write no more than half a page for each question. Consult as many sources as you need
but refrain from copying answers directly from a textbook or a source, use yo
FINC311-014 Spring 2017
Extra Credit Assignment
Due date Monday, 4/17/17
1. What does FICO stand for?
FICO stands for the Fair Isaac Corporation.
2. What does the FICO score measure? What does a high
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