1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with
annual compounding?
a. $205.83
b. $216.67
c. $228.07
d. $240.08
e. $252.08
ANSWER:
d
N
I/YR
PV
PMT
FV
8
8.5%
$125
$0
$240.08
RATIONALE:
2. Jose now has $500.
Problems to review for Midterm Exam 4
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1. Which of the following statements is CORRECT?
a. The internal rate of return method (IRR) is generally regarded by academics as being the
best single method for evaluating capital budgeting projects.
b. The disco
a. ,._.-.v_ a.
ahuAmt
FINA 3101 Monday September 15, 2014
1. Find the current price of a bond that with 10% coupon, $1000 Face Value, 8% yield to maturity, and
three years to maturity, if the bond pays the coupon semiannually. 7i i / "ay " / _I
if: E F [/
Sample Test for Midterm Exam 2
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1. Travis Corp.'s bonds currently sell for $1,050. They have an 8% annual coupon rate and a 20-year maturity,
but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred
Sample Test for Midterm Exam 1
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1. What would the future value of $100 be after 5 years at 10% compound interest?
a. $161.05
b. $134.54
c. $127.84
d. $151.29
e. $143.65
2. A company's 2005 sales were $100 million. If sales grow at 8% per year
FINA3101 August 27, 2014 4th class Week 2
1. Attendance
2. Aplia
3. Review the problem done on Monday.
Loan amount $100,000, interest rate of 15%, three-year loan, equal annual payment.
a. find the annual payment
b. amortize the loan
a. Three ways to find
Sample problems for Midterm Exam 3
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1. Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%.
What is Magee's required return?
a. 10.50%
b. 11.25%
c. 10.25%
d. 11.00%
e. 10.75%
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2. Returns for the Co