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 =
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
2. Jim just deposited $13,000 into hi
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
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]
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
Chapter 09 - Making Capital Investment Decisions
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?
FINC311 EXAM 1
Work with financial assets such as stocks and bonds
2. Financial Manager
CFO top financial manager
Treasurer oversees cash management, credit management, capital
expenditures, and financial planning
Given that the firms cost of capital was 10%, and according the ranks we got as above, we finally
choose project 4. We will show firmly reason to support our investment decision as following.
As we discussed before, IRR is not always a suitable method
Spot hire rate are mainly influenced by the total demand and total supply in the market. We
know that most of the cargo carried in the shipment was iron ore and coal. Those production is
highly affected by the whole economic performance. And the older
Airbus case Solution
Zihao Zhou 115078871
Tuition at age 18=35000*1+4%^13= 58277.57
Tuition at age 19= 35000*1+4%^14=60608.
Ocean carrier case Solution
Zihao Zhou 115078871
1.Since most of the cargo shipments carried in the capesizes are iron ore and coal, spot hire
rate for capsizes is mai
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, use your
own words. Call or email me if
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 your own
words. Call or email me if you ha
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 these investments?
o How will you manage daily activities?
Finance 311 Final Study Guide
Chapter 7: Equity Markets & Stock Valuation
Estimating Dividends: Special Cases
If the dividend is constant, then the price is as follows:
P0 = D / R
P0 = price today of the share of stock
D = Constant dividen
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-period profits available to
shareholders and; anticipate
February 18, 2014
Interest rate (r), also referred to as:
Cost of capital
Terminology depends on usage
Time (t) is the number of compounding periods
Years, months, days, etc
The units of time for o