Projected evaluation (figures in million dollars).
Period
Capital investment
Working capital
Sales
Cost of goods sold
Other costs
Depreciation
Pre-tax profit
Tax
After-tax profit
After-tax profit
Depreciation
Changes in working capital
Investment in fixed

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
2. Nicole wishes to save for a pension for her retirement. She plans on retiring 20 years
from now. Her desired income for the 25 years following that is $30,000 per year with all
pension

1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 each month but has already saved $1,600. Annual interest rates are
cur

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac

CHAPTER 13
Return, Risk, and the Security Market Line
I.
DEFINITIONS
PORTFOLIOS
a
1. A portfolio is:
a. a group of assets, such as stocks and bonds, held as a collective unit by an investor.
b. the expected return on a risky asset.
c. the expected return

FIN 470 Exam2 (Chapters 1-14) Spring 2012
1.
Given the choice, would a firm prefer to use MACRS depreciation or straight-line depreciation?
Why?
For tax purposes, a firm would choose MACRS because it provides for larger depreciation
deductions earlier and

CHAPTER 12
Some Lessons from Capital Market History
I.
DEFINITIONS
RISK PREMIUM
a
1. The excess return required from a risky asset over that required from a risk-free asset
is called the:
a. risk premium.
b. geometric premium.
c. excess return.
d. average

FINA 6274
Homework #1 Due Sept 10th.
Time Value Practice Questions
1. Lisa and Mary are each trying to save enough money to buy their own cars. Lisa is
planning to save $120 from every paycheck (he is paid every 2 weeks.). Mary plans to
put aside $160 eac