Question 1 (8.7)
Marian Plunket owns her business and is considering an
investment. If she undertakes the investment, it will pay $55,000
at the end of each of the next three years. The opportunity
requires an initial investme
BFF3651 Week 4
Managing Interest Rate Risk:
Dollar Gap Analysis and Interest
What You Need to Know
Definition and types of interest rate risk.
Measuring interest rate risk with Dollar Gap Analysis.
Stock A and Stock B have the following returns:
(a) What are the expected returns of the two stocks?
Tutorial Week 7
Working Capital Management
Question 1 (19.4)
Aberdeen Outboard Motors is contemplating building a
new plant. The company anticipates that the plant will
require an initial investment of $3.5 million in net
working capital today. The plant
Bonds and Shares
Question 1 (6-20)
Suppose that General Motors Acceptance Corporation
issued a bond with 10 years until maturity, a face value
of $1,000, and a coupon rate of 7% (annual payments).
The yield to maturity on this bond when it was
You have been accepted into college. The college guarantees that your tuition fee will
not increase for the four years you attend. The first $10,000 tuition payment is due in
six months. After that, the same payment is due every six months un
Question 1 (Problem 5)
Explain the difference between an S and a C
corporation in the United States
The difference between an S and a C corporation in the United States is in the
treatment of taxes. C Corporations have
Tutorial Week 8
Risk and Return
Question 1 (11.4)
Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you
have just bought at $20 and $30 per share, respectively.
(a) What fraction of your portfolio is invested in CSH? In EJH?
Fundamentals of Corporate Finance
Question 1 (9.6)
Hyperion Inc., currently sells its latest high-speed color printer, the
Hyper 500, for $280. It plans to lower the price to $230 next year. Its
cost of goods sold for the Hyper 500 is $180 per