Name Kaimana Souza
Chapter 11
Table 4.2 - Rounded Depreciation Percentages by Recovery Year Using
MACRS for First Four Property Classes
Percentage by recovery year
Recovery year
3 years
5 years
7 years
10 years
1
33%
20%
14%
10%
2
45%
32%
25%
18%
3
15%
19
Name
Chapter 10
3, 6, 7, 14, 16, 21
FIN 3000
P10-3
Choosing between two projects with acceptable payback periods
Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires
an initial investment of $100,000. John Shell, preside
Name Kaimana Souza
4,5,7,8,9,10,11,12,13,14,17
Chapter 9
FIN 3000
w6
P9-4
Cost of debt using the approximation formula
For each of the following $1,000-par-value bonds, assuming annual interest payment and a
40% tax rate, calculate the after-tax cost to m
Kaimana Souza
Chapter 5
4,5,9,11,13,15,19,20,23,24,26,27,28,31,36,38,48,51
FIN 3000
P5-4
LG 2: Future values: FVn = PV (1 + I)n or FVn = PV (FVIFi%,n)
Case
A
B
C
D
E
F
P5-5
a
Cash
$
$
$
$
$
$
Interest
200.00
4,500.00
10,000.00
25,000.00
37,000.00
40,000.0
Name Kaimana Souza
Week 4
Chapter 6 & 7
Chapter 6
10,11,15,16,22
P6-10
Bond Interest payments before and after taxes
Charter Corp. has issued 2,500 debentures with a total principal value of $2,500,000. The bonds
have a coupon interest rate of 7%.
For thi
Name
Kaimana Souza
Problems
Week
Chapter 3: P3-5, P3-9 P3-10, P3-22;
Chapter 4: P4-1, P4-4, P4-7, P4-8
2
P3-5 Everdeen Mining, Inc., ended 2015 with a net profit before taxes of $436,000. The company is
subject to a 40% tax rate and must pay $64,000 in pr
Final Exam for Investment (FIN 3300), Due date: 12/13/2015
Hawaii Pacific University, Name: _
Part II: Problem Solving Questions (70 points)
1. (5 points) Assume a $1,000 treasury bill is quoted to pay 10 percent and matures in 3 months.
a) How much inter
Midterm Exam for Investment (FIN 3300)
Hawaii Pacific University
Name: Kaimana Souza
Part II: Problem Solving Questions (80 points)
1.
10 points
(a).
The stock of Trudeau Corporation went from $27 to $40 last year. The firm also
paid 1 dollar in dividends
FIN 3300
Homework #7
Chapter 14
1. A stock has an exercise (strike) price of $40.
a. If the stock price goes to $41.50, is the exchange likely to add a new strike price?
No, For stocks over $25.00 the typical interval is $5.00. So the next strike price wi
Chapter 11 - Bond and Fixed -Income Fundamentals
FIN 3300
Homework #6
Chapter 11
1. If an investor is in a 34 percent marginal tax bracket and can purchase a municipal
bond paying 7.25 percent, what would the equivalent before-tax return from a
nonmunicip
Fin 3300
Homework #5
Chapter 9
2. What does the weak form of the efficient market hypothesis suggest? What are the two
major ways in which it has been tested?
The weak form of the hypothesis states that past prices and future prices of stocks
are not rele
Chapter 08 - Financial Statement Analysis
Homework #4
Chapter 7
2. If RF = 6 percent, b = 1.3, and the ERP = 6.5 percent, compute Ke (the required rate of
return).
Ke = Rf +b (ERP)
6% + 1.3 (6.5%)
6% + 8.45% = 14.45%
3. If in problem 2 the beta (b) were 1
Kaimana Souza
November 8, 2015
FIN 3300
Chapter 5
Homework 3
7) What is the historical relationship between real GDP and inflation? What lesson
might be learned from observing this relationship?
- The change in real GDP is inversely related to the inflati
FIN 3300
HW#2 (chapter 3 and 4)
Kaimana Souza
Chapter 3
1. Assume you buy 100 shares of stock at $40 per share on margin (40 percent). If the
price rises to $55 per share, what is your percentage gain on the initial equity?
100 x $40 = $4000
100 x $55 = $
Kaimana Souza
10/20/15
Homework #1 (FIN 3300)
Chapter 1
1. The stock of Clarkson Corporation went from $50 to $56 last year. The firm also paid
$2 in dividends. Compute the rate of return.
($56 - $50) + 2
$50
= .16 = 16% rate of return
2. Assume the real