TakeHome Exam 1
V372: Government Finance and Budgets
Sections 6248 & 6249; Trexler
Due: Friday, October 23, 2015
Below you will find your first exam. Its worth 15% of your total grade. You are welcom
V361 Exam 1 Practice Questions
Note: The practice questions on this sheet only cover some potential topics on the exam.
Ch. 1
Financial Management Decisions: capital budgeting, capital structure, work
V361 Review  Test 1
Note: the questions in this review sheet only cover some of the topics.
Chapter 1
Financial Management Decisions: capital budgeting, capital structure, working capital management
Which one of the following terms is defined as the
management of a firm's longterm investments?
capital budgeting
Which one of the following terms is defined as the
mixture of a firm's debt and equit
TakeHome Exam 2
V372: Government Finance and Budgets
Sections 6428 & 6249; Trexler
Due: December 11, 2015
For your final exam, you will act as a budget analyst in the parks department of Parksville.
Exam #2 Formula Sheet
Future Value Formula
FV = PV(1 + r )t
Future Value Factor
=1/Discount Factor
The term, (1 + r )t , is called the future value factor.
Present Value
PV =FV/(1 + r )t
The term,
1/(
Chapter 9 Review
32508
1.) Calculating Payback: What is the payback period for the following set of cash flows?
Year
0
1
2
3
4
Year 1: 4,8001,500 = 3,300
Year3: 700 2,900 = 2,200
Cash Flow
 $4,80
Kaitlyn Phillips
SPEA V372
Homework #1
2/19/2015
Individual Portion
1. The Congressional Budget Office provides Congress with data and analysis for the
budget and provides economic forecasting. The Of
Kaitlyn
Phillips
V372
Assignment #4
4/28/2015
1. If the government were to transition to a flat rate tax system horizontal equity would
improve since the entire population would be paying the same rat
Salaries
Interest income corp bond
Interest income munciple bonds
total income
exclustions
munciple bond interest
above the line deductions
education expense (interst on loan)
standard deduction
perso
Homework #2
Kaitlyn Phillips
3/10/2015
The budget of Fishers Indiana is an excellent budget that has won awards and has
therefore already has many of the parts that are expected to be included in an o
Kaitlyn Phillips
HW #3
4/14/15
1. Exercise 3 pg. 293
a. This is a results oriented or traditional performance based budget because it focuses on
performance and lists the results in order.
b. To make
JAN
FEB
Beginning Balance
MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

Revenues
Total Revenue













Expenses


Total Expenses













Net
The following table shows the costs and benefits of a
proposed project over the next five years. Using a 4%
discount rate, calculate the Net Present Value (NPV) and
Benefit Cost Ration (BCR) for the p
Chapter 14 Worksheet
1.
With the information given, we can find the cost of equity using the dividend growth model. Using
this model, the cost of equity is:
RE = [$2.75(1.058)/$59] + .058 = .1073, or
Chapter 11  Project Analysis
You are considering a new product launch. The project will cost $200,000, have a fiveyear life,
and have no salvage value; depreciation is straightline to zero.
Sales a
Chapter6Worksheet
Annuity
1. After carefully going over your budget, you have determined you can afford to pay $632 per month towards
a new sports car. You call up your local bank and find out that th
Final test
Review session
Chapter 9
Investment Criteria: Payback Period, NPV, Profitability
Index, IRR, Average Accounting Return
Calculation
Identification of variables affecting the calculation
Review Problems for Test 3
Chapter 9:
Consider the following two mutually exclusive projects:
Whichever project you choose, if any, you require a 15 percent return on your investment.
1. If you apply
Present & Future Values
1. First City Bank pays 7 percent simple interest on its savings account balances, whereas Second
City Bank pays 7 percent interest compounded annually. If you made a $6,000 de
Chapter 8 Worksheet 2
Valuing stock with unusual growth
We can divide the periods into two periods:
Periods with nonconstant
growth rate
(a)
Periods with constant growth rate
 et
ProblemswithIRR
IRR can provide two
solutions
In some circumstances IRR can provide two solutions. Why?
Because there are in fact two solutions
Example: An initial cost of $50, a benefit of $150 in pe