FINANCE 3131, PROFESSOR PAUL
CALCULATING THE INTERNAL RATE OF RETURN
1. An investment has an initial cost of $60,000 and will return $6500 at the end of each
year for the next 12 years. Calculate the IRR?
2. A project under consideration by your company h
WORKSHEET ON CALCULATING BOND PRICES
FINANCE 3131
1. A _ bond is one for which the coupon rate is higher than the present
market interest rate.
2. When interest rates rise bond prices _.
3. A bonds coupon rate is found by dividing its _ by its
_.
4. U.S.
WORKSHEET CALCULATING NET PRESENT VALUE
FINANCE 3131, PROFESSOR PAUL
1. A machine that costs $1,000,000 has a 3-year life. It will generate after tax annual
cash flows of $400,000 at the end of each year. It will be salvaged for $100,000 at the
end of yea
1. Nofal Corporation will pay a $6.35 per share dividend next year. The company pledges to
increase its dividend by 5.7 percent per year, indefinitely.
If you require a return of 12 percent on your investment, how much will you pay for the
companys stock
FINANCE 3131, PROFESSOR PAUL
CALCULATING THE INTEREST RATE
1. Calculate the annual interest rate for a present value of $1,000 and a future value of
$2000 in ten years.
2. Calculate the annual interest rate compounded quarterly for a present value of $4,0
CAPITAL BUGETING APPLICATION WORKSHEET
FINANCE 3131, PROFESSOR PAUL
1. You have decided to purchase a rental house for investment purposes that you expect
to keep until your retirement in 30 years. You have located a house and can purchase it
for a total
FUTURE VALUE WORKSHEET, FINANCE 313, PROFESSOR PAUL
1. Calculate the FUTURE VALUE of $1,000 invested for 10 years at 6% interest
Compounded annually:
Compounded semiannually:
Compounded quarterly:
Compounded monthly:
Why does the future value increase wit
UIL ACCOUNTING
Invitational 2003-A
Group 1
For items 1 through 6, write YES if the account will appear on a Post-Closing Trial
Balance; write NO if it will not.
1. Income Summary
2. Prepaid Insurance
3. the owners drawing account
4. Merchandise Inventory
UIL ACCOUNTING
State 2004-S
Group 1
A bookkeeper needs your help to analyze a trial balance that is out of balance.
The debit column total is $58,000 and the credit column total is $48,000. After a
thorough review, you find that all transactions were jour
UIL ACCOUNTING
Invitational 2004-B
Group 1
For items 1 through 10, on your answer sheet write YES if the answer is yes; write
NO if the answer is no.
1. Is the Petty Cash account a permanent account?
2. Should the Income Summary account appear on the Post
UIL ACCOUNTING
Regional 2004-R
Group 1
For each account listed in items 1 through 8, indicate the effect the debit or credit
has on the account using the code: INC=increase DEC=decrease
1.
2.
3.
4.
5.
6.
7.
8.
ACCOUNT
DEBIT OR CREDIT
Sales
credit
Debra Ja
UIL ACCOUNTING
District 2003-D2
Group 1
For each account title in questions 1 through 7, write the identifying letter of the
correct response (A, B, or C) which indicates whether each account should be
closed and where, or if it should not be closed at al
UIL Accounting
Invitational 2003-B
Group 1
Indicate the classification of items 1 through 8 by writing the correct identifying
letter on your answer sheet and indicate the decrease side of the account by
writing DR for debit or CR for credit. Both parts o
University at Albany, State University of New York
Department of Economics
Ph.D. Preliminary Examination in Microeconomics, August 28, 2013
Instructions: Answer any three of the four numbered problems. Justify your answers
whenever possible. Write your an
Finance 30210
Problem Set #1 Solutions
1) Consider two individuals- Lisa and Mitch. We have the following information
about each persons productivity:
Task
Ironing Clothes
Washing Clothes
Lisa
4 hours
3 hours
Mitch
5 hours
6 hours
a) Calculate Lisas oppor
FINANCE 3131, PROFESSOR PAUL
CALCULATING THE NUMBER OF PAYMENTS
1. Calculate the number of monthly payments required to accumulate a future value of
$7,000 with payments of $350/month at four percent interest compounded monthly.
2. Calculate the number of
FINANCE 3131, PROFESSOR PAUL
CALCULATING PAYMENTS
1. Calculate the payment on a present value of $10,000 financed for 10 years at seven
percent compounded on payment date:
Calculate the annual payment:
Calculate the semi-annual payment:
Calculate the quar
Business impact of rules on FDI .
4.4 .91 1.04 Visa requirements, no. of
countries* . 73.1 .54 1.05
Openness bilateral ASAs (038)* . 9.8
.86 1.06 Transparency of government
policymaking . 3.8 .104 1.07 No. of days
to start a business* . 9 .42
1.08 Cost to
2.5 Gross domestic product (current PPP, $) per
capita, 2011 .
1,918.2 Real GDP growth (percent),
2011 .
. 4.9 Environmental
Performance Index 2012, rank (out of 132
economies), 2011 . n/a
2013 World Economic Forum The Travel & Tourism
Competitiveness In
FINANCE 3131, PROFESSOR PAUL
CALCULATING PRESENT VALUE
1. Calculate the present value of $2,000 received in five years at nine percent.
Compounded annually:
Compounded semi-annually:
Compounded quarterly:
Compounded monthly:
Compounded daily (365 days in
FINANCE 3131, PROFESSOR PAUL
CALCULATING A STOCKS RATE OF RETURN
1. Joe earns $22 a year on a total investment of $400, what is his rate of return?
2. Joan receives a $7 annual dividend on a preferred stock presently priced at $35, what is
the market rate