FNAN 301 Test bank problems capital budgeting criteria
1. What is the NPV of project A if it has the following expected cash flows and the cost of capital for project A is 11%? Years from today 0 1 2 3 4 Expected cash flow (in $) -50,000 40,000 30,000 -10
of capital - 1
FNAN 301 Financial Management
Cost of capital
of capital - 2
Topics Covered
Overview Important
Firm cost of capital
relationships
Weighted-average cost of capital
Computing
Two capital structure items (1 debt and 1 equity) Any number of
FNAN 301 Test bank problems relevant cash flows and NPV analysis 1. Blizzard Inc. is evaluating a 1-year project that would involve an initial investment of $1,000,000 and an expected cash flow of $1,210,000 in 1 year. The project has a cost of capital of
FNAN 301 Solutions to test bank problems time value of money part 2
Some answers may be slightly different than provided solutions due to rounding
1. Quality Real Estate owns a skyscraper that is expected to produce cash flows of $10 million in 1 year, $1
FNAN 301
Solutions to test bank problems risk and return
Some answers may be slightly different than provided solutions due to rounding
1. The following table provides the price of a stock and the annual dividend paid at various
points in time.
3 years ag
of capital - 1
FNAN 301
Financial Management
Cost of capital
Topics Covered
of capital - 2
Firm cost of capital
Overview
Important
relationships
Weighted-average cost of capital
Computing
Two capital structure items (1 debt and 1 equity)
Any number o
dgeting criteria - 1
FNAN 301
Financial Management
Capital budgeting criteria
dgeting criteria - 2
Topics Covered
Overview of capital budgeting
Evaluating capital budgeting opportunities
Net
present value (NPV)
Internal rate of return (IRR)
Payback per
and return - 1
FNAN 301
Financial Management
Risk and return
and return - 2
Topics Covered
Returns
Annual returns
Nominal and real rates
Variability of returns
Expected returns, variances, and standard
deviations
Individual
assets
Portfolios
Risk premiu
FNAN 301
Solutions to test bank problems cost of capital
Some answers may be slightly different than provided solutions due to rounding
1. Last Stand Corp has 700,000 shares of common equity outstanding that have an expected return of
16.00%, an expected
FNAN 301
Solutions to test bank problems relevant cash flows and NPV analysis
Some answers may be slightly different than provided solutions due to rounding
1. Blizzard Inc. is evaluating a 1-year project that would involve an initial investment in
equipm
Evaluating Bias in Research
By Rashad Abushaikha
Dr. Calvin E. Moore, Jr
SOC100
04/24/16
Research in any field is one of the hardest tasks that is necessary for the growth of any
company. The first, and possibly most important, step in the students guide
FNAN 301/303, lab on 5/26/2016
Spring 2010, test 3, question 2, version 4
1. Bond A and bond B both pay semi-annual coupons, mature in 8 years, have a face value of $1000, pay
their next coupon in 6 months, and have the same yield-to-maturity. Bond A has
Syllabus: FNAN 301/303 (Financial Management), Summer A 2016
Updated May 12, 2016
Professor:
Office:
Email:
Phone:
Office hours:
Dr. Steven Pilloff
Enterprise Hall, Room 229
spilloff@gmu.edu
703-993-5058
M R: 3:40 pm 4:15 pm and by appointment
Class room:
FNAN 301/303, lab on 5/24/2016
1. Pauly wants to have $119,927 in his account. If Pauly can earn 11.9 percent per year, then how many annual
savings contributions of $8,500 will he have to make to meet his savings goal? Pauly plans to make his first
inves
M04_P0096-0133_CH04.indd 96
13/11/2013 07:29
4
The Aegean World
and the Rise of Greece
Trade, War, and Victory
THINKING AHEAD
4.1 Compare and contrast the Cycladic, Minoan, and Mycenaean cultures.
4.2 Define the formal features of the Homeric epic, and co
M02_P0030-0065_CH02.indd 30
19/11/2013 10:08
2
The Ancient Near East
Power and Social Order
THINKING AHEAD
2.1 Describe the relationship between the gods and the peoples of Sumer, Akkad, Babylon, and Assyria.
2.2 Explain how the Epic of Gilgamesh reflects
M03_P0066-0095_CH03.indd 66
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3
The Stability
of Ancient Egypt
Flood and Sun
THINKING AHEAD
3.1 Describe how the idea of cyclical return shaped Egyptian civilization.
3.2 Analyze how religious beliefs are reflected in the funerary art and a
PARTONE
The Ancient World
and the Classical Past
Prehistory to 200 ce
Nebamun Hunting Birds, from the tomb of Nebamun, Thebes, Egypt (detail). ca. 1400 bce (see Fig 3.2 in Chapter 3).
T
he history of human beings on this planet is, geologically speaking,
Chapter 4: E2
As the executive of a bank or thrift institution you are faced with an intense seasonal
demand for loans. Assuming that your loanable funds are inadequate to take of the
demand, how might your reserve bank help you with this problem.
Reser
FNAN 301/303
Solutions to test bank problems relevant cash flows and NPV analysis
Some answers may be slightly different than provided solutions due to rounding
1. Kwon Jewelers is evaluating a 1-year project that would involve an initial investment in
eq
Discussion Question Rubric
Grade
Discussion Rubric
Responses are on topic, original, and contribute to the
quality of the discussion.
Responses make frequent, informed references to unit
material.
Responses are clearly written.
A
25 -22.5Pts.
Substant
FNAN 301
Solutions to test bank problems capital budgeting criteria
Some answers may be slightly different than provided solutions due to rounding
1. The managers of Central Concrete Incorporated are evaluating 5 potential projects (A, B, C, D, and E).
Ba
FNAN 301
Solutions to test bank problems stocks
Some answers may be slightly different than provided solutions due to rounding
1. Which one of the assertions about statement 1 and statement 2 is most likely to be true?
Statement 1: If 1 million shares of
FNAN 301, Summer C 2010, quiz 2, solutions Conceptual and quantitative: present value of a single cash flow and an annuity due 1. The Central Surfing Company just bought 500 wet suits from Sea Blanket Inc. Central Surfing has been offered the 3 possible p
FNAN 301, Fall 2010, quiz 2, solutions Present value of an annuity and one extra cash flow 1. Mackinac Industries own a building that has an expected return of 12.0 percent. The building is expected to produce annual cash flows of $18,000 for 8 years, wit
FNAN 301, Fall 2009, quiz 3, solutions Quantitative: find price with non-constant dividend growth model 1. The annual dividend paid by Zorn Corp. common stock is expected to be $0 in 1 year, $0 in 2 years, $5.00 in 3 years, $7.00 in 4 years, and then grow
FNAN 301, Spring 2010, quiz 3, solutions Conceptual: effect of YTM changes on value: direction and magnitude for different maturities 1. Georgetown Inc. and Fairfax Inc. have each issued a bond that just paid a coupon and pays its next semi-annual coupon
FNAN 301, Summer C 2010, quiz 3, solutions Price one stock to find growth rate of a second stock 1. Lamar owns one share of stock of Starfish Inc. and one share of stock of Fractional Fruit Corporation. The total value of his holdings is $85. Both stocks
FNAN 301/303, Fall 2015, test 4, version D, solutions
1. According to the class overheads and basic ethics, which one of the following assertions about
insider trading, which is against the law, is true?
A. Insider trading is legal and should be considere
FNAN 301/303, Fall 2015, test 2, version D, solutions
1. Bonds issued by DeAngelos Flavors have a par value of $1000, were priced at $1,195 1 year
ago, and are priced at $1,180 today. The bonds pay annual coupons and just made a coupon
payment. If the bon
FNAN 301/303, Fall 2015, test 3, version D, solutions
1. What is the expected after-tax cash flow from selling a piece of equipment if Abuela Pastries
purchases the equipment today for $260,000, the tax rate is 20%, the equipment is sold in 3 years
for $1
of money part 1 - 1
FNAN 301/303
Financial Management
Time value of money
Part 1
of money part 1 - 2
Topics Covered
Overview of time value of money
Single cash flows
Timelines
of money part 1 - 3
Time Value of Money
Whats the most you would pay today for
FNAN 301/303, lab on 6/2/2016
Spring 2011, test 3, question 9, version 4, modified by adding IRR & NPV
1. The following table presents information on a potential project with conventional cash flows currently being
evaluated by SDA. Which of the statement