1.
John House has taken a $250,000 mortgage on his house at an interest rate of 6%
per year. If the mortgage calls for 20 equal, annual payments, what is the amount
of each payment?
A. $21,796.
14
B. $10,500.
00
C. $16,882.
43
D. $24,327.
18
Use a financi

12/09/2016
1.1 The Types of Firms
Sole Proprietorship
Chapter 1
Partnership
The Corporation
Limited Liability Company
Corporation
1.1 The Types of Firms
1.2 Ownership Versus Control of Corporations
1.3 The Stock Market
NCCU Financial Management 2016 F

2016/9/19
5.1 Interest Rate Quotes and Adjustments
The Effective Annual Rate
Chapter 5
Indicates the total amount of interest that will be earned at
the end of one year
Considers the effect of compounding
Interest Rates
Also referred to as the effecti

2016/9/13
3.1 Valuing Decisions
Chapter 3
Identify Costs and Benefits
May need help from other areas in identifying the relevant
costs and benefits
Financial Decision Making and the
Law of One Price
3.1
3.2
3.3
3.4
3.5
Valuing Decisions
Interest Rates a

13/09/2016
2.1 Firms Disclosure of Financial
Information
Chapter 2
Financial Statements
Introduction
to Financial Statement Analysis
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Firm-issued accounting reports with past
performance information
Filed with the relevant li

2016/9/18
4.1 The Timeline
Chapter 4
A timeline is a linear representation of the timing of
potential cash flows.
Drawing a timeline of the cash flows will help you
visualize the financial problem.
Assume that you are lending $10,000 today and
that the

Terence Breezeway
Prairie Home Stores
Represent the 10% of the book value, start of year.
Its common stocks was distribuited among 15 grandchildren and nephews
If Praire Home did public, what should its shares sell for?
2. Ms Firewater the CFO
What should

FinancialManagement
Spring2014Midtermexam
I.
MultipleChoiceQuestions(63%)
1. After retirement, you expect to live for 25 years. You would like to have $75,000 income each year.
How much should you have saved in the retirement to receive this income, if th

Case 1
Facts
Inflation
Investment
interest
Years
$
Social
Expenses
Timespan
$
$
Savings
$
4%
180,000
9%
750 Per Month
24,000 Per Year
20 Years
1
12,000
Incomes Annual
Investment
Social
Total
$
$
$
16,200
9,360
25,560
Expenses
Total
$
$
24,960
24,960
Incom

Part 3 The New Investment Technology
Risk is widely variance or standard deviation of returns. The wider the spectrum, the riskier
the investment. The large range of return from a risky investment not only constitutes the
potential losses but also astonis

Jack Tar.
Duffel Canvas
CFO
Production
Years
Price
100000
5 years
30
Contraints
1. Fixed price, long term contract
2. Investment $ 1.5 million
Facts
Book Value of the land
Selling price of the land
Cost of Refurbishing de Plant
Cost of Machinary
Machinary

NATIONAL CHENGCHI UNIVERSITY
INTERNATIONAL MASTER OF BUSINESS
ADMINISTRATION
FINANCIAL MANAGEMENT
PROFESSOR JASON TSAI
MINI CASE 6
BRUCE HONIBALLS INVENTION
GROUP MEMBERS:
DECEMBER 19 TH 2016
VALUING OPTIONS: BRUCE HONIBALLS INVENTION.
Mr. Bruce Honiball

Homework Assignment 1: Task Nr. 9 Page 78 - Market vs. Book Value
Fundamentals of Corporate Finance 8th Edition
a. What are the book value and market value of the firm?
Book value: $ 200000
Market value: $ 50200000
Explanation:
Book value equals the $20

Homework Assignment 3: Task Nr. 12 Page 166 Bond Pricing
Fundamentals of Corporate Finance 8th Edition
a) What is the yield to maturity of bond A?
VERSION 1: YMT Approximation
Formula: [Coupon Income + (Face Value - Price) / n)] / (1/3Face Value + 2/3 Pri

9/23/2016
Business this week | The Economist
Business this week
Sep 24th 2016 | From the print edition
The BankofJapan announced a further easing of monetary policy. It said it would cap the yield on
ten-year government bonds at about 0% and also committe

10/11/2016
Business this week | The Economist
Business this week
Oct 8th 2016 | From the print edition
DeutscheBanks battered share price rose, amid reports that it was negotiating a much smaller
settlement with the US Department of Justice than the $14 b

FinancialManagement
Spring2012Midtermexam
1. As the number of stocks in a portfolio is increased:
A. Unique risk decreases and approaches to zero
B. Market risk decreases
C. Unique risk decreases and becomes equal to market risk
D. Total risk approaches t

Summary Chapter 2 - Principles of Corporate Finance
How to calculate the present Value
Example:
Suppose you invest $100 in a bank account that pays interest of r = 7% a year. In the first year you will
earn interest of 0.7 x $100 = $7 and the value of you

Chapter 3 Valuing Bonds
3-1 USING THE PV FORMULA TO VALUE BONDS
You may have noticed a shortcut way to value this bond. Your OAT amounts to a package of two
investments. The first investment gets the four annual coupon payments of 8.50 each. The second ge

Chapter 4 the Value of Common
Stocks
4-1 HOW COMMON STOCK ARE TRADED
If GE wishes to raise new capital, it can do so either by borrowing or by selling new shares to investors.
Sales of shares to raise new capital are said to occur in the primary market. H

Wm. _
Multiple Ch
1. Which one
projects?
a. Equal borrow1
b. Upward sloping
c. Downward sloping 1*
d. Competitive market
a. Accept a project if its NPV 1
b. Reject a project if the NPV < 0
c. Accept a project if its rate of retu .
(1. Accept a project if

Financial Management
Chapter 2 - Exercises
1. Future Values. If you invest $100 at an interest rate of 15%. How much will you have at the end of eight years?.
Value of Investment after 8 years = $100 * (1+ r)^8
R.
2. Discount Factors. If the PV of $139 is

CHAPTER 5 NET PRESENT VALUE
AND OTHER INVESTMENT
CRITERIA
THREE POINTS TO REMEMBER ABOUT NPV
If you have two projects A and B, the net present value of the combined investment is
NPV DEPENDS ON CASH FLOW, NOT ON BOOK RETURNS
5-2 PAYBACK
A projects payback

FinancialManagement
Spring2013Midtermexam
I.
MultipleChoiceQuestions(58%)
1. Conflicts of interest between shareholders and managers of a firm result in:
A. Principal-agent problem
B. Increased agency costs
C. Both A and B
D. Managers owning the firm
Type

CHAPTER 1: INTRODUCTION
1. Managers on a fixed salary are subjected to following temptations all the time:
I) reduced effort
II) perks or private benefits
III) empire building
IV) entrenching investments
V) avoiding risks
A. I, II and V only
B. I, II, and

Case 1 Road
income
$180,000
Expenses
(1500+500) x 12
= $24,000.00 In Real Term
9%
9,000 In real term
$750 x 12
$12,000 @5%
@10% 100&$10 = 10
Inf 5%
100 x 1.1 / $10 * 1.05 =
100/10 * 1.1/1.05
104.7619
excel calculate present value of annuality
Example reti

10/24/2016
Business this week | The Economist
Business this week
Oct 22nd 2016 | From the print edition
Chinas GDP grew by 6.7% in the third quarter, exactly the same pace that was recorded in the first and second quarters and raising more questions
about

9/18/2016
Business this week | The Economist
Business this week
Sep 17th 2016 | From the print edition
Real median householdincome in the United States grew last year for the first time since 2007, to
$56,500. That is up by 5.2% compared with 2014, the bi

Homework Assignment 2: Task Nr. 44 Page 156 Retirement Savings
Fundamentals of Corporate Finance 8th Edition
a. How much money will they have accumulated 30 years from now?
VERSION 1:
We have to calculate the accumulated future value of a $3000 annuity af