School of Economics & Finance
Curtin Business School
Question 1
Sample FNCE2000 MID SEMESTER TEST
Part (A)
i.
(3 marks)
Calculate the price of a ten-year, $1000 par value bond that makes semi-annual
payments, has a coupon rate of 12 percent, and offers a
T : so 7. all CQS
Question 1 (20 Marks) Am," C cfw_y
You are looking to use relative valuation methods to value Company Q, a healthcare
company, which owns a number of hospitals throughout Queensland. You have the
following information pertaining to compa
School of Economics & Finance
Curtin Business School
Question 1
Sample FNCE2000 MID SEMESTER TEST
Part (A)
i.
(3 marks)
Calculate the price of a ten-year, $1000 par value bond that makes semi-annual
payments, has a coupon rate of 12 percent, and offers a
Unit: FNCE2000 Introduction to Finance Principles Semester 2 2015
Locations: Bentley, CTI and Miri campuses
Assessment: Group assignment
Assessment value: 20%
Due date: To be submitted by 5pm on Friday 23rd of October 2015 (week 10 as per unit outline)
IM
Chapter 5 Time Value of Money and Interest Rates I
Questions from the required textbook at the end of Chapter 5
1. For each of the following, compute the present value:
Future Value
$4 995
$4 782
$8 277
$14 305
Years
13
8
15
7
Interest Rate
4%
6%
7%
25%
P
Year
1
2
3
Beginning Book Value
96000
72000
48000
Depreciation
Ending Book Value
24000
72000
24000
48000
24000
24000
*Depreciation expense = 96,000 0.25=24,000
Book Value = 24,000
Sale Value = 20% x 96,000 = 19,200
Gain/Loss = SV - BV
Gain/Loss = 19,200 -
Chapter 1 Introduction to Corporate Finance
Questions from the required textbook at the end of Chapter 1
4. Would our goal of maximizing the value of the shares be different if we were
thinking about financial management in a foreign country? Why or why n
Lecture 3 Time Value of Money and Interest Rates II
Questions from the required textbook at the end of Chapter 5
7. You have just joined the investment advisory firm Skyhigh & Co. They have
offered you two different salary arrangements. You can have $250,
Lecture 2 Time Value of Money and Interest Rates I
Questions from the required textbook at the end of Chapter 5
1. For each of the following, compute the future value:
Present Value
Years
Interest Rate
$20 000
8
10%
$40 000
8
10%
$20 000
8
20%
$20 000
16
Unit: FNCE2000 Introduction to Finance Principles Semester 1/Trimester 1A 2016
Locations: Bentley, CTI, Miri, Singapore and Sydney campuses
Assessment: Group assignment
Assessment value: 20%
Due date: To be submitted by 5pm on Friday 20th of May 2016 (wee
Why do companies need a financial manager? investment decision and the financing decision. Firstly, the
financial manager is often required to source and find or create investment opportunities.
Investment in the right kind of projects will determine the