PROBLEM SET 3
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Monday 21st July at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set,
please send the answers by email to: ramiro.malaga
PROBLEM SET 5 - SOLUTION
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Monday 28th July at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set,
please send the answers by email to: ra
ECONOMICS 389 CORPORATE FINANCE Spring 2010 A SAMPLE PROJECT Choose a publicly listed company from the following links.
Bonds Online Fixed Income Research Center http:/www.bondsonline.com/asp/research/intro.asp Financial Dictionary http:/www.investopedia.
Name: Answer Key
Student ID #:
Problem # Answer
1
E
2
D
3
E
4
C
5
A
6
B
7
C
8
E
9
A
10
A
11
D
12
C
13
E
14
B
15
D
16
D
17
D
18
A
19
B
20
A
21
C
22
E
23
B
24
C
25
B
1
Short answer (5 points each, 25 total).
1. Your sister recently graduated. Rather than ta
ECO389 Corporate Finance Problem Set 3
Fall 2014
Instructor: Jake Zhao
Due: 10/20/14
1. Consider the following potential events that might have taken place at Global
Conglomerate on December 27, 2012. For each one, indicate which line items
in Globals bal
ECO389 HW 2
Multiple-Choice Questions (3 points per question)
There is only one correct choice in the following questions.
Use the table for the question(s) below.
You are considering investing in a start up project at a cost of $100,000. You expect
the p
ECO389 HW 5 - Solutions
M ultiple -Choice Questions (4 points per question)
There is only one correct choice in the following questions.
Consider the following probability distribution of returns for Alpha Corporation:
Curre nt
Stock Price Stock Price in
PROBLEM SET 3 - SOLUTION
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Friday 18th July at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set,
please send the answers by email to: ra
PROBLEM SET 4
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Wednesday 23th July at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set,
please send the answers by email to: ramiro.mal
ECO389 HW 1
Multiple-Choice Questions
(Question 1-20: 3 points per question; question 21-30: 4 points per question)
There is only one correct choice in the following questions.
1) Which of the following organization forms for a business does not avoid dou
ECO389 Corporate Finance Problem Set 1
Fall 2014
Instructor: Jake Zhao
Due: 9/17/14
1. Go to Google nance to nd the closing price of GOOGL and AMD for the month of August
(click on the Historical prices tab on the left).
(a) What is the mean and sample va
ECO389 HW 4 - Solutions
Multiple-Choice Questions (5 points per question)
There is only one correct choice in the following questions.
Use the information for the question(s) below.
Rearden Metals has a current stock price of $30 share, is expected to pay
ECO389 HW 3 - Solutions
Multiple-Choice Questions (4 points per question)
There is only one correct choice in the following questions.
Consider the following probability distribution of returns for Alpha Corporation:
Current
Stock Price Stock Price in
Pro
ECO389 HW 2 - Solutions
Multiple-Choice Questions (4 points per question)
There is only one correct choice in the following questions.
1) At an annual interest rate of 7%, the future value of $5,000 in five years is closest
to:
A) $3,565
B) $6,750
C) $7,0
ECO389 HW 2 - Solutions
Multiple-Choice Questions (3 points per question)
There is only one correct choice in the following questions.
Use the table for the question(s) below.
You are considering investing in a start up project at a cost of $100,000. You
PROBLEM SET 4 - SOLUTION
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Wednesday 23th July at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your problem set,
please send the answers by email to:
PROBLEM SET 8 - SOLUTION
ECO389 SUMMER 2014
Corporate Finance
Instructor: Ramiro Malaga
Due date: Monday 11th August at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty to submit your
problem set, please send the answers by email to:
ECO389 Midterm 2 - Solutions
Part I. Multiple-Choice Questions (3 points per question)
There is only one correct choice in the following questions.
Use the following information to answer question 1-3 below.
Sarah Palin reportedly was paid a $11 million a
ECO389 HW 1 - Solutions
Multiple-Choice Questions
(Question 1-20: 3 points per question; question 21-30: 4 points per question)
There is only one correct choice in the following questions.
1) Which of the following organization forms for a business does n
132
Chapter 4 The Time Value of Money
Further
Reading
The earliest known published work that introduces the ideas in this chapter was in 1202 by the
famous Italian mathematician Fibonacci (or Leonardo of Pisa) in Liber Abaci (recently translated
into Engl
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Spring 2015
IRR RULE RECAP
The IRR investment rule is not a foolproof method!
The IRR investment rule is only guaranteed to work for a
stand-alone project if all of the project's negative cash
Review of Statistical Concepts - Part1
Corporate Finance ECO389
Ramiro Malaga-Ortega
Department of Economics
Stony Brook University
Lecture of July 8th, 2014
Outline
1
Probability Distributions
Discrete Distribution
Continuous Distribution
2
Mean of a Ran
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Spring 2015
T EXTBOOK
No required textbook
My lectures are mostly based on Berk and DeMarzo
Ivo Welch's book may be useful and can be found for free at
http:/book.ivo-welch.info/ed3/toc.html
So
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Spring 2015
IPO
An initial public oering is a process where shares of stock in a
company usually are sold to institutional investors (that price the
company receives from the institutional inve
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Fall 2015
D EFINITIONS
D EFINITION
The eective annual rate (EAR) indicates the actual amount of
interest that will be earned at the end of one year.
D EFINITIONS
D EFINITION
The eective annual
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Fall 2015
B ONDS
The promised interest payments of a bond are called
coupons
The bond certicate typically species that the coupons will be paid
periodically (e.g., semiannually) until the matur
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Fall 2015
0
1
2
3
4
.
$100
G
$100 1.03
$103 1.03
ROWING$103
PERPETUITY
$106.09
$106.09 1.03
$109.27
In general, a growing perpetuity with a first payment C and a growth rate g will have the
C ORPORATE F INANCE (ECO389)
Jake Zhao
Stony Brook University
Fall 2015
T EXTBOOK
No required textbook
My lectures are mostly based on Berk and DeMarzo
Ivo Welch's book may be useful and can be found for free at
http:/book.ivo-welch.info/ed3/toc.html
Some
ECO389 Corporate Finance Problem Set 4
Spring 2016
Professor: Jake Zhao
Due: 4/18/16
1. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 millio
ECO389 Corporate Finance Problem Set 1
Spring 2016
Professor: Jake Zhao
Due: 2/15/16
1. Go to Google nance to nd the closing price of GOOGL and AMD for the month of January
(click on the Historical prices tab on the left).
(a) What is the mean and sample
PROBLEM SET 2 - SOLUTION
ECO389 FALL 2016
Corporate Finance
Instructor: Ramiro Malaga
Due date: Monday 12th September 2016 at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty in submitting your problem
set, please send the answers by
PROBLEM SET 6 - SOLUTION
ECO389 FALL 2016
Corporate Finance
Instructor: Ramiro Malaga
Due date: Thursday 13th, October 2016 at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty in submitting your problem
set, please send the answers by
PROBLEM SET 5 - SOLUTION
ECO389 FALL 2016
Corporate Finance
Instructor: Ramiro Malaga
Due date: Thursday 6th, October 2016 at 11:00 p.m.
Please answer it on Blackboard. If you face any difficulty in submitting your problem
set, please send the answers by