Busi 3361
Introduction to Valuation:
The Time Value of Money
Ch 5
Learning Objectives
Be able to compute the future value of an investment
made today
Be able to compute the present value of cash to be
received at some future date
Be able to compute the
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BUSI 3360 (01 03)
*FINAL EXAM*
Fall 2014
Friday, December 5 2014
7:00 p.m. to 10:00 p.m.
Please read the questions carefully!
Show your methodology, final answers carry near zero points.
State any assumptions you make.
NO CELL PHONES ALLOWED IN EXAM ROOM
BUSI 3360
Practice MIDTERM EXAM
Provided by Professor Laurie Sinclair
Instructions:
1. The total time allowed for this examination is 150 minutes (2.5 hours).
2. No books, notes, cell phones, IPODS or other digital media players are allowed
3. Put your an
Chapters 9 & 10
Capital Budgeting Practice Problems
1. Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0
-$350,000
-$35,000
1
25,000
17,000
2
70,000
11,000
3
70,000
17,000
4
430,000
11,000
Assume you require a 15 p
MOUNT SAINT VINCENT UNIVERSITY
BUSI 3361 Assignment #1
Total Value 77 Marks
Question #1:
You are trying to save to buy a $70,000 BMW. You have $50,000 today that can be
invested at your bank. The bank pays 4.5% annual interest on its accounts. How long
wi
For all problems, ignore any tax considerations. Use at least 6 decimal places when expressing
percentages as a decimal number (e.g. .123456 = 12.3456%)
1. In 30 years, you would like to retire with $1,000,000 in savings. Assuming that you had $90,000 to
CHAPTER 7
INTEREST RATES AND BOND
VALUATION
CHAPTER 7
INTEREST RATES AND BOND VALUATION
Solutions to Questions and Problems
NOTE: All end of chapter problems were solved using a spreadsheet. Many problems require multiple steps. Due to
space and readabili
BUSI 3361 ASSIGNMENT #2
Due February 15, 2017 at 3:00pm
TOTAL VALUE (70 Marks)
Note: For math problems, please show all of your work in your
solutions.
Question 1 (6 Marks)
Samantha is an investor with a low tolerance for risk. She has heard
that bonds of
BOND PRACTICE PROBLEMS
1) A bond has a $1000 par value, a coupon rate of 10% (paid semi- annually)
and 7 years to maturity. Similar bonds are priced to yield 14% in the market.
What is the market price of this bond?
2)
Using the following bond quote from
SOLUTION TO CHAPTERS 9 & 10 CAPITAL BUDGETING PRACTICE PROBLEMS
1)
a. The payback period for each project is:
A:
Year Cash Flow (A) Cumulative
0
-$350,000
1
25,000
-325,0000
2
70,000
-255,000
3
70,000
-185,000
4
430,000
3 + ($185,000/$430,000) = 3.43 y
MOUNT SAINT VINCENT UNIVERSITY
BUSI 3361 Assignment #2
Total Value 34 Marks
Question #1:
At the time of the last referendum, Quebec provincial bonds carried a higher yield than
comparable Ontario bonds because of investors' uncertainty about the political
Rules for using ln
We use ln (natural logarithm or loge) and its inverse ex to get rid of exponents or to solve for exponents in
an algebraic equation.
1)
ln(mn) = ln(m) + ln(n)
Multiplication inside the log can be turned into addition outside the log, an
GENS 4721: Advanced Geographic Information Systems
The Wildland-Urban Interface: the Role of Topography and
Fuel in Determining Wildfire Risk
Lab Assignment #1
(Due Wednesday, January 20)
Introduction
Increases in population size, ever-growing interest in
GENS 4721: Advanced Geographic Information Systems
Sackville Flood Modelling
Lab Assignment #3
(Due Wednesday, March 9th)
Introduction
For this assignment, I would like you to design an automated Python script that (as a
finished product) assesses the acc
c06307e95b58a5df52b8a13c6b23890d6e98cfc3
EN
OBJECTID
internal feature number
NAME
park name
JURISDICTION jurisdiction or municipality
ACRES
total park area in acres
NAMEFR
french translation of the park name if different from NAME
TYPE
type of park
TYPEFR
Calculating the Payment in an Ordinary Annuity (PMT)
Present value calculations allow us to determine the amount of the recurring
payments in an ordinary annuity if we know the other components: present
value, interest rate, and the length of the annuity.
BUSINESS 3361
Chapters 5 & 6 _ PRACTICE PROBLEMS
SOLUTIONS ARE POSTED IN MOODLE
1. David has been awarded a scholarship that will pay $2,500 one
year from now. However, he really needs the money today, and
has decided to take out a loan. If the interest r
Chapter 1 Practice Problems
Question 1
Why is process thinking important in operations management? Thinking of yourself as an operations
manager for your education, how could process thinking improve your performance as a student?
Question 2
Why is it ben
Ch14_Cost of Capital Practice Problems
1) Cooper Enterprises sells outdoor swimming pools and currently has an after-tax cost of
capital of 12 percent. Reinhold's sells pool decks and has an after-tax cost of capital of
9 percent. Cooper Enterprises is co
Chapters 9 & 10
Capital Budgeting Practice Problems
1. Ebb and Flow Ranchers Ltd. is one of the finest producers of gourmet
spaghetti in Nova Scotia. Management is considering purchasing a
new spaghetti harvesting machine. The new machine will be more
eff
BUSINESS 3361
MORE TIME VALUE OF MONEY PRACTICE
PROBLEMS(CHAPTER 6)
SOLUTIONS ARE POSTED IN MOODLE
#1) Jimmie is buying a new car. His bank quotes a rate of 9.5 percent per
year for a car loan. Calculate the effective annual rate if the
compounding occurs
Chapters 12 & 13 Practice Problems
Solutions are posted in Moodle
1) Two stocks, A and B, have returns over the next year that depends on the state of the economy.
There are four possible outcomes, depending on the economy:
Economy
Boom
Above Average
Belo
Mount Saint Vincent University
BUS 3361 Winter 2015
Assignment #1
Time Value of Money
Question #1:
Some time ago, Daniel purchased five acres of land costing $123,400. Today, that
land is valued at $189,700. How long has he owned this land if the price of
Mount Saint Vincent University
Bus 3361 Assignment #1 Time Value of Money
Solutions
Question #1:
Some time ago, Daniel purchased five acres of land costing $123,400. Today, that land is
valued at $189,700. How long has he owned this land if the price of
Kashia lionel
Assignment #2
Shares to be distributed
I.
Increase by 27%
50,000*27%= 13500 new shares to be issued
II.
Market value of new shares
50,000+13,500= 63,500
13,500 *88$= 1,1888,00 +3,300,000
How equity changes after stock dividends
Common stock