FI 3300 - CORPORATION FINANCE
Take-Home Problem Set Two (THPS-2)
Fall 2016
Directions: This problem set covers chapters 1, 3 and 4 in the textbook. Determine or compute an answer for each
question/problem. After you have computed an answer for every quest
FI 3300 - CORPORATION FINANCE
Take-Home Problem Set One (THPS-1)
Fall 2016
Directions: This problem set covers chapter 2 (Accounting Review) in the textbook and basic math skills that you
will use throughout this course. Determine or compute an answer for
Time Value of Money
Answer Key
FI 3300
Summer 2002
1. B - this describes an annuity; a perpetuity lasts forever, not a fixed period of time.
2. A
3. B - this is essentially the same as 2. An increase in the number of compounding periods per year
will incr
Final Exam Fall 2012
1. The primary goal of a publicly-owned firm interested in serving its stockholders should be to
_.
a. maximize expected total corporate profit
b. maximize expected EPS
c. minimize the chances of losses
d. maximize the shareholder wea
Final Exam Fall 2012
1. The primary goal of a publicly-owned firm interested in serving its stockholders should be to
_.
a. maximize expected total corporate profit
b. maximize expected EPS
c. minimize the chances of losses
d. maximize the shareholder wea
Exam number: _
DO NOT TOUCH or TURN
OPEN UNTIL INSTRUCTED
TO DO SO. FAILURE TO
OBEY THIS RULE WILL
RESULT IN A GRADE OF 0
ON THIS EXAM.
PLEASE PUT AWAY ALL
BOOKS, NOTES, ETC. YOU
ARE ONLY ALLOWED TO
HAVE A CALCULATOR AND
PENS/PENCILS.
Spring 2015
Exam #:
CHAPTER 2 Answers to Additional Problems and Questions
1. The definitions to all of these terms are in the chapter. If you dont know the definition of all
of these terms, look them up. You should be able to define each of these terms.
2. Net income = $18,
Godbey Motor Works, Comprehensive Problem
Original Version Written By: Dr. Jonathan Godbey
Godbey Motor Works has developed an amazing new technology that allows a 7 seat SUV with
450 horsepower to get 200 miles per gallon. GMW plans to build a new plant
Chapter 3 Notes
Earnings & Profit are accounting variables and are not perfectly correlated with economic
value. In finance, we care about value (=cash)!
What are some key elements related to cash flow management?
o Contracts with customers & suppliers: h
Chapter 9 Notes
Stocks and Bonds
1. What is a bond?
a. A bond is a fixed-payment debt security.
b. Types of bonds:
i. Zero-coupon bonds: Pay the price today, get the face value at
maturity
ii. Coupon bonds: Pay the price today, get the face value at matur
Quiz 3 Name:
F1 3300
Please show all of your work (Timeline and Equation).
Failure to do so will result in no credit regardless of your answer.
1) You want to purchase a perpetuity for your retirement that pays you $65,000 per year
forever. You want to r
U
Quiz 2 Name: i
F1 3300
Please show all of your work (timeline and equation). '
Failure to do so will result in no credit regardless of your answer.
1] What is the present value of$5,000 that is to be paid in 8 years if the appropriate
discount rate is 7
Chapter 4 Notes
Income Statement = Statement of the revenues the company brought in and the expenses
spent in a given year
The key here is to remember that this is not a statement of cash flows; for instance, you
do not pay depreciation, it is simply an a
1.
What is the present value today (t=0) of receiving $5,000 three years from today (t=3). Assume a discount
rate of 6%, compounded annually.
1. $5,788.132
2. $4,985.00
3. $4,319.193
4. $4,198.096
5. $5,955.081
At the start of the year, you place $150,000
1.
What is the present value today (t=0) of receiving $10,000 8 years from today (t=8). Assume a discount rate
of 6%, compounded annually.
1. $5,988.132
2. $6,885.000
3. $6,319.193
4. $6,274.123
5. $5,954.879
2.
At the start of the year (t=0), you place $
CHAPTER 7 Answers to Additional Problems and Questions
Problems:
1. a more compounding periods per year creates a larger effective interest rate.
2. e
3. 17 years
4. 4.45%
5. $12,809.92
6. d
7. a
8. 19.56%
9. $704.00
10. e
11. e
12.
13. $15,129.38
14. $45
CHAPTER 4 Answers to Additional Problems and Questions
Problems:
1. A grocery store. Would you want to shop at a grocery store that had an inventory turnover
ratio of 2? That is, all items (fruit, meat, vegetables, etc.) turned over (i.e., sold) on averag
CHAPTER 2 Solutions to Assignment Problems
Assignment 2.1:
a.
Freida, Incorporated
Income Statement
For the Year ending December 31, 2006
Gross sales
Less Returns and allowances
462,720
(10,210)
Net sales
Beginning inventory
+ Materials Purchases
- Ending
Learning Objectives Exam One
FI 3300
From Time Value of Money:
Understand the fundamental nature of compound interest
Linking to your understanding of how compound interest works, understand and
be able to work with the formulas for:
o FV of a Single Sum
Exam 2 Learning Objectives
Chapter 2:
1. Recognize items that belong on an income statement.
2. Prepare an income statement.
3. Calculate COGS given information about changes in inventory.
4. Calculate net profit margin.
5. Recognize items that belong on
The value today (t=0) of receiving $5,000 three years from today (t=3) is $_. Note: Assume an interest rate of
6%.
$5,788.13B.
$4,985.00C.
$4,319.19D.
$4,198.10E.
$5,955.08
Question2/5
Assumeyoudeposit$200peryearintoanaccountearning11%.Assumethefirstdep
CHAPTER 8 Answers to Additional Problems and Questions
Problems:
1. A financial security is a contract between an individual (or organization) who needs money
and another individual (or organization) who provides the needed money. The contract
specifies t
Part 3 Financial securities Notes
Basic concepts
What is a financial security?
What are the two common types of securities?
Chapter 6 Valuation of Bonds
Learning objectives
Bond terminologies: par value, maturity, coupon/coupon rate, payment frequency, yi
FI3300
Honglin Ren
Time Value of Money Notes
Chapter 2 Time Value of Money basics
Discounting and Compounding for single cash flow and multiple cash flows
Nominal interest rate, real interest rate and inflation
Chapter 3 Time Value of Money advanced
Annui
1. b
Step 1. Find accumulated depreciation = 5300 + 4400 = 9700
Step 2. Using the information given to construct a Balance Sheet for year 2012. Cash is the account to
balance out both sides of the balance sheet. Cash = 74900-66600 = 8300
2012
2012
Assets
Financial Calculator Texas Instruments BA II Plus notes
Basic Setup
Set decimal places: [2ND], [.], [9], [ENTER]
Set frequency of payment=1: [2nd], [I/Y], [1], [Enter]
Set payment occur at the end of period:
[2nd], [PMT]. If BGN appears, then press [2nd],
I
Introduction
I made the decision to get tattoos while I was active duty in the military. Not knowing what I
wanted to do outside the military at the time, my decision was simple to obtain tattoos.
During my last year in service, I made the decision to j