AFM 121, Winter 2012
Annuity and Perpetuity Practice Problems
Problem 1 (Easy)
Large jackpots in most U.S. lotteries are paid out in equal annual installments. The winner can also
request immediate pa
Problems
Problem 4-12
Problem 4-13
Problem 4-14
Problem 4-15
Problem 4-23
Problem 4-24
Problem 4-27
Problem 4-28
Problem 4-29
Problem 4-30
Problem 4-32
Problem 4-34
Problem 4-35
Problem 4-36
Problem 4
AFM 273 - Quiz #4
Name:
Student ID:
Musa Khan
20508206
Answer the questions on all "2" tabs.
Convert the following rates to an EAR
APR
15%
8%
12%
8%
Compounding
Period
Annually
Semi annually
Weekly
Mo
AFM 273 - Quiz #2
Name:
Student ID:
Joshua David
20421373
Multiple Choice Questions: Place an "X" in the shaded cell next to the correct answer. (1 mark each)
Answer the questions on all "3" tabs.
1.
Figure 14-1
7.
Figure 14-1 above represents the six steps in setting price. Which letter represents the step where a firm
would consider a demand-, cost-, profit-, or competition-oriented approach?
A.
145.Tendollars.com offers thousands of gifts, all priced at $10. This is an example of two pricing methods
working in tandem. Most likely, the firm uses a _ and a _.
A. customary pricing approach; ski
Problems
Problem 4-12
Problem 4-13
Problem 4-14
Problem 4-15
Problem 4-23
Problem 4-24
Problem 4-27
Problem 4-28
Problem 4-29
Problem 4-30
Problem 4-32
Problem 4-34
Problem 4-35
Problem 4-36
Problem 4
Problems
Problem 7-5
Problem 7-7
Problem 7-12
Problem 7-13
Problem 7-14
Problem 7-15
Problem 7-5
Royal Mount Games would like to invest in a division to develop software for video games. To evaluate t
Problems
Problem 12-4
Problem 12-5
Problem 12-13
Problem 12-14
Problem 12-15
Nike and Dell stock returns
Problem 12-4
Suppose all possible investment opportunities in the world are limited to the five
Problems
Problem 13-2
Problem 13-18
Problem 13-19
Problem 13-20
Problem 13-26, 13-27, 13-28
Table 13-1
Problem 13-2
Assume that the CAPM is a good description of stock price returns. The market expect
Problems
Problem 5-2
Problem 5-3
Problem 5-10
Problem 5-18
Problem 5-19
Problem 5-21
Problem 5-22
Problem 5-29
Problem 5-30
Problem 5-31
Problem 5-32
Problem 5-2
Which do you prefer: a bank account th
184.Which of the following statements regarding quantity discounts is most accurate?
A Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree
. than do nonc
Problems
Problem 6-4
Problem 6-5
Problem 6-6
Problem 6-7
Problem 6-11
NPV for 6-11 part a
NPV for 6-11 part b
Problem 6-16
Problem 6-17
Problem 6-20
Problem 6-24
Problem 6-27
Problem 6-4
Your firm is
Problems
Problem 4-12
Problem 4-13
Problem 4-14
Problem 4-15
Problem 4-23
Problem 4-24
Problem 4-27
Problem 4-28
Problem 4-29
Problem 4-30
Problem 4-32
Problem 4-34
Problem 4-35
Problem 4-36
Problem 4
Problems
Problem 8-3
Problem 8-4
Problem 8-13
Problem 8-14
Problem 8-25
Problem 8-30
Problem 8-3
The following table summarizes prices of various default-free zero-coupon
bonds (expressed as a percent
34. When Hallmark cards introduced a line of $0.99 cards (about half the price of the previously least
expensive cards it sold), the greeting card company was trying to appeal to a mass market that wa
73. Yield management is considered to be a _ approach to pricing.
A. demand-oriented
B. cost-oriented
C. profit-oriented
D. competition-oriented
E. service-oriented
74. Yield management pricing refers
53. A retailer purchased a gross of silk shells each costing exactly $17 apiece. Although the only difference
between the shells was color, when they were put on the floor, the pastel primary colors w
59. Odd-even pricing is based on
A. retailers' perceptions of price.
B. customers' perceptions of price.
C. wholesalers' markups.
D. manufacturers' perceptions of price.
E. government regulators' perc
66. Bundle pricing is considered to be a _ pricing practice.
A. demand-oriented
B. cost-oriented
C. profit-oriented
D. competition-oriented
E. product line-oriented
67. Marketing two or more products
80. With a _ pricing strategy, a price setter stresses the _ side of the pricing
problem.
A. demand-oriented; cost
B. supply-oriented; target ROI
C. competition-oriented; marketing channel
D. cost-ori
87. Creative Quilts Studio sells hundreds of colors and types of fabric and thread. To price its inventory, the
owners add 50 percent to the cost of each bolt of fabric and every spool of thread. What
93. Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee based on
expected costs plus an agreed upon level of profit for the law firm. Which pricing approach ar
120.Target return-on-investment (ROI) is frequently used by
A. contractors.
B. public utilities.
C. business-to-business markets.
D. supermarkets.
E. small privately owned firms.
121.Rather than empha
106.The retail price of DVD players has decreased from $900 in the mid-1990s to less than $100 today. This
is due in large part to
A. skimming pricing.
B. prestige pricing.
C. odd-even pricing.
D. exp
113.The manager of a small gasoline station observes that while gasoline sales have been steady, the service
side of the business has fallen off, and mechanics are often idle. He decides to offer a pr
100.The Brazilian government wants to build a global positioning satellite (GPS) system. The satellite
manufacturer will receive a mutually agreed upon profit. The pricing approach the satellite manuf
126.For most products, it is difficult to identify a specific market price for a product or product class. Still,
marketing managers often have a subjective feel for the competitors' price or market p
137.Position "C" in Figure 14-3 above represents the price premium of which of the following?
A. Crunch n Munch
B. Cracker Jack
C. Fiddle Faddle
D. Private Brands
E. Seasonal, specialty, and regional
Chapter 1: The Corporation
The Three Types of Firms
-Sole Proprietorships
-Owned and ran by one person
-Straightforward to set up
-Owner has unlimited liability
-Life of company is limited to life of
Chapter 5
THE EFFECTIVE ANNUAL RATE
Interest rates are often stated as an effective annual rate ( EAR ) , which indicates
the total
amount of interest that will be earned at the end of one year.
For e