Take-Home 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 welcome to work individually or
in groups. Each student or gr
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, working capital management
Business Organization in United
Which one of the following terms is defined as the
management of a firm's long-term investments?
capital budgeting
Which one of the following terms is defined as the
mixture of a firm's debt and equity financing?
capital structure
Which one of the followi
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
Business Organization in US: types, advantages & disadv
Take-Home 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. Preparations for next
years budget (2016) have just beg
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/(1 + r )t , is called the Discount Factor while r is cal
Chapter 9 Review
3-25-08
1.) Calculating Payback: What is the payback period for the following set of cash flows?
Year
0
1
2
3
4
Year 1: 4,800-1,500 = 3,300
Year3: 700 2,900 = -2,200
Cash Flow
- $4,800
1,500
2,600
2,900
1,700
Year 2: 3,300 2,600 = 700
SO:
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 Office of Management and Budget helps
the president in pr
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 rate. Vertical equity would
worsen because no matter what
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
personal
taxable income
$ 81,500.00
$ 4,050.00
$ 1,800.00
$
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 outstanding budget
but there is always room for improvem
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 this valuable all of the results should in percentages.
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 project.
Year
Costs
950
845
367
497
856
Total
NPV
BCR
14
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 10.73%
2.
The cost of preferred stock is the dividend p
Chapter 11 - Project Analysis
You are considering a new product launch. The project will cost $200,000, have a five-year life,
and have no salvage value; depreciation is straight-line to zero.
Sales are projected at 6000 units per year; price per unit wil
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 the going rate is 1 percent per month for 48
months. How
Final test
Review session
Chapter 9
Investment Criteria: Payback Period, NPV, Profitability
Index, IRR, Average Accounting Return
Calculation
Identification of variables affecting the calculation
Decision Criteria
Advantages and Disadvantages of each
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 the payback criterion, which investment will you choose
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 deposit in each
bank, how much more money would you earn
ReviewProblemSolutions
ComparingInvestmentCriteria
a.
Thepaybackperiodforeachprojectis:
A: 3+($175,000/$440,000)=3.40years
B: 2+($4,000/$19,500)=2.21years
The payback criterionimplies acceptingprojectB,because it pays back soonerthan
projectA.
b.
Thedisco
Chapter 8 Worksheet 2
Valuing stock with unusual growth
We can divide the periods into two periods:
Periods with non-constant
growth rate
(a)
Periods with constant growth rate
- eternity
(b)
For (a), you have to determine dividends pay
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 period 1 and a
cost of 110 in period two:
NoIRR
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