Week 5 Homework
Chapter 11: 4, 7, 17, & 29
4. Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X
with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If your goal is
to

Week 2 Homework
Chapter 4: 8, 17, & 18
Chapter 5: 1, 4, & 12
Chapter 4
8. Calculating the Number of Periods. Calculating Rates of Return. In 2011, an 1880-O
Morgan silver dollar sold for $13,113. What was the rate of return on this investment?
[(13,113/1)

Week 4 Homework
Chapter 8: 3,4,5,6
3. Calculating Payback. Global Toys Inc., imposes a payback cutoff of three years for its
international investment projects. If the company has the following two projects available,
should it accept either of them?
Proje

Week 3 Homework
Chapter 6: 16
Chapter 7: 11 & 12
Chapter 6: 16
Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual
payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has
20 years

Case II
BUSN 379, week 4
S& S Airs Mortgage Presentation
Questions:
1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for
a 20-year traditional mortgage?
2. Prepare an amortization table for the first six months of

SUNSET BOARDS
Income Statments as of December 31, 2013 and 2014
Net Sales
Cost of Goods Sold
Gross Profit
Selling & Administrative Expense
Depreciation
Earinging before interest and taxes
Interest Paid
Earinging before taxes
Income before taxes
Net Income

SUNSET BOARDS
Income Statements as of December 31, 2013 and 2014
2013
Net Sales
333,426
Cost of Goods Sold
169,969
Gross Profit
163,457
Selling & Administrative Expense
33,425
Depreciation
47,980
Earnings before interest and taxes
82,052
Interest Paid
10,