Vocabulary
1. Coupon Bonds 2. Zero Coupon Bonds 3. Return n Current Yield n Capital Gain/Loss 4. Yield to Maturity vs. Yield to Call
1
Let's look at cash flows
n N
I
PV
PMT
FV
2
Bonds
n 2 fundamental
Introduction
WHAT IS FINANCE?
Financial Management decisions about
assets/capital (investments, financing)
Capital Markets interest rates, stocks and
bonds, bring together savers and demanders
Investm
homework 5:
Question 1 of 10
1.0 Points
1. The future earnings, dividends, and common stock price of Carpetto Tech Inc. are expected to
grow by 7% next year. Carpettos common stock currently sells for
homework 10:
Question 1 of 10
1.0 Points
Suppose you are analyzing two firms in the same industry. Firm A has a profit margin of 10% versus
a margin of 8% for Firm B. Firm A's debt ratio is 70% versus
QuestionSingleCorrectpoint
Youhaveabondwitha$10,000parvalue,9.2%couponrate,17yearmaturity,amarketrateofinterestof
11.1%,andPVof$8,549.92. What is(are) the compounding period(s) associated with this b
FIN 301
Practice Questions for Midterm 4
1. Wayward Inc. has a beta of 1.42. The expected return on the S&P 500 index for the next year is
11.87% and a one-year T-bill that pays $1,000 at maturity is
Homework 4:
Write out a formula that can be used to value any stock (P0), regardless of its dividend pattern.
A. D/ks
B. Dt/(1+ks)t
Summation from t to
infinity of Dt divided
by (1 + ks) raised to the
Part 1 of 10 - HW1NEWQ1
1.0 Points
Question 1 of 10
1.0 Points
You deposit $1150.00 into a savings account
earning 8%, compounded quarterly. How long
does it take you to have an amount of $3,417.49
in
homework 6:
Question 1 of 10
1.0 Points
A firm's CFO wants to estimate the firm's WACC, and has compiled the following information:
The firm's capital structure consists of 60% equity and 40% debt.
Th
homework 9:
Question 1 of 10
1.0 Points
Your firm is currently 100% equity financed. The CFO is considering a recapitalization plan under
which the firm would issue long-term debt with an after-tax yi
Essentials of Corporate Finance Ross 8th Edition Test Bank
Click here to download the test bank INSTANTLY!
http:/www.solutionsmanualtestbank.com/products/2013/03/07/essentials-of-corporatefinance-ross
homework 8:
Question 1 of 10
1.0 Points
The primary advantage to using accelerated rather than straight-line depreciation is that with
accelerated depreciation the total amount of depreciation that ca
FINA 363 Introduction to Finance
Exam #2
Dr. David Chappell
Version A
Name _
1. You have extra money to invest for exactly one year, after which you will need to sell the
investment to pay for college
Bond Valuation Worksheet
ASSUMPTION TABLE
Years to Maturity
Nominal Mkt Interest Rate
# Periods in a Year
Nom. Coupon Rate
Par Value of the Bond
CALLABLE BOND
Years to Call
Call Premium
Nominal Yield
7-1
Statement of Cash Flows
Relevance of Cash
Cash is the most liquid of assets.
Offers both liquidity and flexibility.
Both the beginning and the end of a companys
operating cycle.
Contrast: Accr
WACC Computations
Assumption Table
Weight of Debt
Weight of Preferred Stock
Weight of Retained Earnings
Weight of Common Stock
Preferred Stock Coupon (%)
Market Price of Preferred
Flotation Cost of Pr
Bond Valuation Worksheet
ASSUMPTION TABLE
Years to Maturity
Nominal Mkt Interest Rate
# Periods in a Year
Nom. Coupon Rate
Par Value of the Bond
CALLABLE BOND
Years to Call
Call Premium
Nominal Yield
Portfolio Optimization - Real Data
inputs
risk free
risky aAAPL
MSFT
XOM
JNJ
GE
BRK-B
PEP
MRK
AMZN
GOOG
GOOGL
PG
WFC
JPM
VZ
PFE
KO
CVX
HD
PM
AAPL
AAPL
1.000
MSFT
0.340
XOM
0.356
JNJ
0.192
GE
0.367
BRK
Fall 2016
FIN 301
INTRODUCTION TO FINANCE
Professor:
Office:
Phone:
Email:
Dr. David Chappell, Ph.D.
FSB 2022
513-529-1503
[email protected]
Office Hrs:
Dr. Chappell
(I prefer contact via email; pl
Bond Valuation
BOND COMPONENTS
MARKET INTEREST RATES CHANGE
Yield to Maturity (Nominal)
Years
Yield
to to
Maturity
Maturity (Nominal)
Present
Years Value
to Maturity
Coupon
Present
(Nominal)
Value
Par
Fall 2014
FIN 301
INTRODUCTION TO FINANCE
Professor:
Office:
Phone:
Email:
Dr. David Chappell, Ph.D.
FSB 2022
513-529-1503
[email protected]
Office Hrs:
FSB 2022
Dr. Chappell
Anna Furmanava
Grace S
Assignment 9A: Question #4
Acme is expected to generate a free cash flow (FCF) of $9,060.00 million this year (FCF 1) and the free
cash flow is expected to grow at a rate of 23.80% for the next two ye
Chapter 1: An Overview of Financial Management
Forms of business organizations:
(1) Proprietorships - an unincorporated business owned by one individual
advantages: 1. easy and inexpensive to form
2.
Assignment 13A
Problem #10: A project has annual cash flows of $5,000 for the next 10 years
and then $9,000 each year for the following 10 years. The IRR of this 20-year
project is 8.52%. If the firms
Review Sheet Exam #2
Working Capital Management Chapter 15 (16 points)
Know how to calculate the 3 components of the Cash Conversion Cycle (page 40):
Inventory conversion period (days in inventory)
Co