(a) 15 years?
(b) Indefinitely long?
11. What is the present value of an infinite life annuity of $3,000 which provides the first
payment in 7 years? Your opportunity cost of funds is 9%.
12. A share of stock is expected to pay a $2 dividend in year one,
5. You need $129,200 at the end of seventeen years. You know that the best you can do
is to make equal payments into an account on which you can earn 9 percent interest
compounded annually. Your first payment is to be made at the end of the first year
and
Local labor, at three francs daily per man.
Rental of mules, at six francs daily per animal.
There has never been a reply.
(a) What (annually-compounded) interest rate is Bourg-St. Pierre charging the
French?
(b) What (continuously-compounded) interest
engineers, Orange is confident that investments of $24,000,000 each year now and at
the start of the next 3 years will result in a new generation of minicomputers which
generate expected net cash flow from operations of $50,000,000 per year in perpetuity
In the never ending quest for computing convenience, we recently found
three products especially useful. One saves money, one saves time, and the
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University of Pennsylvania
The Wharton School
FNCE 100
A. Craig MacKinlay
PROBLEM SET #1
Fall Term 2005
Present Value and Term Structure
1. Given an annual interest rate of 10 percent, what is the present (t = 0) value of a
stream of $100 annual payments
University of Pennsylvania
The Wharton School
FNCE 100
A. Craig MacKinlay
Solutions to PROBLEM SET #1
Fall Term 2005
Present Value and Term Structure
1. PV =
20
X
t=1
100
(1+r)t
= 100 [20 year annuity factor at 10%]
= 100(8.536) = $851.36
or, alternativel
(i) You are working for a large institutional investor. Another large firm offers to
lend your firm $1 million between periods 2 and 3 at a rate of 11%. Do you
accept? Explain.
(j) Someone offers your firm a chance to buy a three period zero coupon bond (
We will be discussing one of the biggest challenges threatening the
stability of the Indian banking system the Non-Performing assets
(NPAs).
The banking business has boomed since Independence, particularly
after the LPG reforms. The sector is currently va
Question:
Whatarethemaindutiesandresponsibilitiesofafinanceexecutive?
Solution:
RecurringDuties:
o
Decidingthefinancialneeds
o
Raisingthefundsrequired
o
Allocationoffunds
1.Fixedassetsmanagement
2.Workingcapitalmanagement
o
AllocationofIncome
o
ControlofF
THE UNIVERSITY OF BURDWAN
DIRECTORATE OF DISTANCE EDUCATION
BARDHAMAN
WEST BENGAL 713104
Ph: 0342 2657 804/912
INSTRUCTIONS REGARDING ONLINE ADMISSION TO 2-YR MBA WITH
SPECIALISATION IN FINANCIAL MANAGEMENT/ MARKETING
MANAGEMENT/HUMAN RESOURCE MANAGEMENT
What is a responsibility center?
A responsibility center is a part or subunit of a company for which a manager has authority and
responsibility. The company's detailed organization chart is a logical source for determining
responsibility centers. The most
1. The cost price of an article of Rs. 800. At allowing a discount of 10%, a gain of 12 was made. Them the market
price of article is
(A) Rs. 1,000 (B) Rs. 1,100(C) Rs. 1,200 (D) Rs. 1,300
2. A man bought an article listed at Rs. 1500 with a discount of 2
1. Three customers want haircut and a shave. In a saloon, two barbers operate at same speed. They take
2.
3.
4.
5.
6.
7.
8.
quarter of an hour for the haircut and 5 mins for the shave. How quickly can they finish the haircut and shave
of these three custo
1. In the month of October in a year has exactly four Mondays and four Fridays, find
what day of week will be on the 20th of November of that year.
2. Six persons A,B,C,D,E & F went to solider cinema. There are six consecutive seats. A
sits in one of the
1. A Compact Disc Player when sold for Rs. 13,600, incurred a loss of 15%. At what price
should it have been be sold to make a profit of 35% on the cost?
(a) Rs. 5,600 (b) Rs. 21,600 (c) Rs. 20,400 (d) Rs. 4,800 (e) None of these
2. London time is five an
1. My fathers age was x in the year x. I am obviously talking about 20th century. In
which year was my father born?
2. A man was going by cycle. After going 2/3rd of total distance the cycle broke down
and he had to complete the journey on foot. At the en
1. when the actual time pass 1hr wall clock is 10 min behind it when 1 hr is shown by wall clock, table clock
shows 10 min ahead of it when table clock shows 1 hr the alarm clock goes 5min behind it, when alarm
clock goes 1 hr wrist watch is 5 min ahead o
1. If DANCE is coded as GXQZH, then how will RIGHT be coded?
(A) UFJEW
(B) SCKFX
(C) UEJWE
(D) UPWJE
2. If LOSS is coded as 1357 and GAIN is coded as 2468, what do the figures 84615 stand for?
(A) NAILS
(B) SNAIL
(C) LANES
(D) SLAIN
3. A man started walki
1. Inlet 1 and 2 together can fill a tank in 18 hours. Inlet 2 can fill the tank on its own in 24 hours. In how
many hours can inlet 1 alone fill the tank?
(a) 48 hrs.
(b) 72 hrs.
(c) 60 hrs.
(d) 84 hrs.
(e) None of these
2. If the numerator and denominat
1. An escalator is descending at constant speed. A walks down and takes 50 steps to
reach the bottom. B runs down and takes 90 steps in the same time as A takes 10 steps.
How many steps are visible when the escalator is not operating.
2. An escalator is d
1. The ratio of the number of students studying in schools A,B and C is 5 : 6 : 8 respectively. If the number of students
studying in each of the schools is increased by 30%, 25% and 25% respectively, what will be the new ratio of
students in schools A,B
1.
2.
3.
4.
5.
6.
A sum of money placed at compound interest trebles itself in 5 years. In how many years will it
amount to nine times itself?
(a) 10 years
(b) 12 years
(c) 15 years
(d) 18 years
A machine is sold at a profi t of 10%. Had it been sold for
1. When the actual time pass 1 hr, wall clock is 10 min behind it. When 1 hr is shown
by wall clock, table clock shows 10 min ahead of 1 hr. When table clock shows 1 hr, the
alarm clock goes 5 min behind it. When alarm clock goes 1 hr, wrist watch is 5 mi
1. Given following sequence, find the next term in the series:
(i) 0, 2, 4, 6, 8, 12, 12, 20, 16, _
(ii) 3, 6, 13, 26, 33, 66, _
2. Three customers want haircut and a shave. In a saloon, two barbers operate at
same speed. They take quarter of an hour for
1.
A can do a piece of work in 4 days, B can do the same work in 6 days and C in 12 days. A
started the work but had to leave after 1 day. In how many days can both B and C complete
the remaining work?
(a) 2 days (b) 3 days(c) 4 days (d) 6 days
2. A train
1. A boat M leaves shore A and at the same time boat B leaves shore B. They move
across the river. They met at 500 yards away from A and after that they met 300 yards
away from shore B without halting at shores. Find the distance between the shore A &
B.
1. Two trains leaving from two station 50 miles away from each other with costant
speed of 60 miles per hour, approaches towards each other on diffrent tracks. if lenght
of each train is 1/6 mile. when they meet How much time they need to pass each other
1. A hill of 440 yards is there. Two competitors JACK and JILL go up the hill, first JACK
reaches the topmost and immediatly starts back and meet JILL 20 yards from the
topmost point. Finally JACK reaches the starting point 0.5 minutes earler than JILL.
S