Mid-term Exam One
Version A
First Name (Print) _ Last Name (Print)
_
DIRECTIONS
1. Switch off your cell phone.
2. This is a closed book exam.
3. There are 15 questions in the exam. You have 65 minutes to complete this.
4. Be sure to carefully record your
1. r=r*+IP+DRP+LP+MRP=2.4%+(5%*5+8%*5)/10+0.8%+1.35%+0.1*(10-1)%
=2.4%+6.5%+0.8%+1.35%+0.9%=11.95%
2. Note that the different between treasury bond and corporate bond is DRP and LP,
since the DRP is 1.3%, then LP=(6.2%-4.4%)-1.3%=0.5%
3. If inflation is e
Mid-term Exam One
Version A
1. According to the text, the primary goal for a firms financial managers should be
to:
A. Maximize the firms reported earnings per share.
B. Maximize the price per share of the companys stock.
C. Minimize the volatility of the
Homework-Cash Flows Estimation and NPV
Please follow the class instructions and work on this following problem in Excel. Please
turn in the homework at the beginning of the class on 12/2/2013 (Monday). Make sure
you present your work in a clear and profes
Exam Two Study Guide
1. Practical information about the exam:
-Date: 10/24/2013, Thursday
-You have 65 minutes (entire class period) for the exam.
-There are about 18 questions in total, 16 multiple-choices and 2 step-by-step problems.
-It is a closed-boo
Mid-term Exam One
Version B
1. According to the text, the primary goal for a firms financial managers should be
to:
A. Maximize the firms reported earnings per share.
B. Maximize the price per share of the companys stock.
C. Minimize the volatility of the
1.
Which of the following would be most likely to lead to a higher level of interest
rates in the economy?
A. Households start saving a larger percentage of their income.
B. Corporations step up their expansion plans and thus increase their demand
for cap
1. You have the following data on three stocks:
Stock
A
B
C
Standard Deviation
20%
10%
12%
Beta
0.59
0.61
1.29
If you are a strict risk minimizer, you would choose Stock _ if it is to be held in
isolation and Stock _ if it is to be held as part of a well-
Practice-Capital Structure
1. An increase in the debt ratio will generally have no effect on which of these items?
a.
b.
c.
d.
e.
Business risk.
Total risk.
Financial risk.
Market risk.
The firm's beta.
2. Which of the following statements is CORRECT?
a.
Practice-Review Session (Chapter 10, 11, 12, 14, 15)
1. A stock analyst has obtained the following information about J-Mart, a large retail
chain:
The company has non-callable bonds with 20 years maturity remaining and a
face value of $1,000. The bonds ha
Exam Three Study Guide
1. Practical information about the exam:
-Date: 11/25/2013, Monday
-You have 65 minutes (entire class period) for the exam.
-There are about 18 questions in total, 16 multiple-choices and 2 step-by-step problems.
-It is a closed-boo
Practice-Estimating Cash Flows
1. A firm is considering adding a new type of soft drink to its existing line of drinks.
Which of the following should not be included in calculating incremental cash flows?
(A) The firm expects sales of the new product to b
NORTHEASTERN UNIVERSITY
FINA-2201 FINANCIAL MANAGEMENT
Summer 1, 2016
Syllabus
Course Description from the 2015-2016 Undergraduate Catalog: Designed to develop
the financial skills and logical thought processes necessary to understand and discuss
financia
AccountingReview
Instructor:LinlinMa,Ph.D.
Fall,2014
Financial Statements
Income statement summarizes a firms
revenues and expenses over a given period of
time.
Balance sheet provides a snapshot of a firms
financial position at one point in time.
Statemen
FinancialManagement
Instructor:LinlinMa,Ph.D.
Fall,2014
What is Finance?
Savers
Financial
Markets/Institutions
Borrowers
Finance: the process of transferring money from
savers to borrowers through financial
markets/institutions.
2
Subject Areas in Finance
FinancialPlanningand
Forecasting
Instructor:LinlinMa,
Ph.D.
Fall,2014
Financial Managers
-What do
they do?
1. Managing the
working capital
2. Estimating the
seasonal fund needs
3. Financial Planning and
Forecasting
1
Financial Planning
-Why
important?
For
FinancialRatios
Instructor:LinlinMa,
Ph.D.
Fall,2014
Financial Ratios-Why?
We need numbers to assess companies
health.
Financial ratios standardize numbers and
facilitate the evaluation
Ratio comparisons should be made through
time and with competitors.
T
FINA2201-Formula Sheet
Current Assets
Current Ratio= Current Liabilities
Total Debt Ratio=
Total Liabilities
Total Assets
Inventory Turnover=
COGS
Inventory
Quick Ratio=
Current AssetsInventory
Current Liabilites
Times Interest Earned=
EBIT
Interests
Days
Ian McDougall
Financial Management
George Gray
9/13/15
Walmart
I decided to choose Walmart as my public company because they are the largest U.S.
retailer and the largest private-sector U.S. employer. While other companies decline due to
conditions in Chi
Homework Two (Chapter 3)
(Due the beginning of class, Sep. 15th, 2014)
Directions: There are 8 questions in total. Work on this homework alone. Any discussions with
anyone other than your instructor and her TA will be considered as cheating and, thus, as
Practice-Financial Ratios
1. What information does the Net Profit Margin provide?
A. How liquid the business is
B. How much of the assets were purchases with equity
C. How profitable the company is
D. If the business is solvent
E. The growth rate of the c
Practice-Capital Budgeting
1. Cash flows of Project S and L are as following:
Year
0
1
2
3
4
Project S
-1,000
500
400
300
100
Project L
-1,000
100
300
400
675
IRR of Project S is _;
IRR of Project L is _;
Calculate the NPVs for project S and L for differe
Practice-Cash Flow Estimation
You are given the responsibility of conducting the project selection analysis in your firm.
You have to calculate the NPV of a given project. The appropriate cost of capital is 12%
and the firm is in the 30 percent tax bracke
Comprehensive/Spreadsheet Problem
Parker Products manufactures a variety of household products. The company is
considering introducing a new detergent. The companys CFO Brain Parker has
collected the following information about the proposed product.
The p