MBA 800 Homework #7 Solutions
Stock Valuation
Dr. Stanley D. Longhofer
1) Problem 9-2 in the text: Anle Corporation has a current price of $20, is expected to
pay a dividend of $1 in one year, and its expected price right after paying that
dividend is $22
MBA 800 Homework #6 Solutions
Bond Valuation
Dr. Stanley D. Longhofer
1) Consider a $25,000 par value bond with a 6 percent, semi-annual coupon and 10
years remaining until maturity.
a) If the bonds current market price is $24,625, what is its yield to ma
YAHIA ELRAYES
A455M224
MBA 800 Homework #2
Time Value of Money and Interest Rates
1) Your buddy in mechanical engineering has invented a money machine. The main
drawback of the machine is that it is slow. It takes one year to manufacture $1,000.
However,
MBA 800 Homework #1 Solutions
Arbitrage & Financial Decision Making and Time Value of Money
Dr. Stanley D. Longhofer
1) Suppose your employer offers you a choice between a $6,000 bonus and 200 shares
of the company stock. Whichever one you choose will be
MBA 800 Financial Statement Analysis
Stock Valuation Practice Problems Solutions
Dr. Stanley D. Longhofer
Note: Some of the problems below came from Corporate Finance, 6th edition by Ross,
Westerfield, and Jaffee.
1) Quirky Corporation common stock just p
MBA 800 Homework #4 Solutions
Investment Decision Rules
Dr. Stanley D. Longhofer
1) Problem 7-15 from the text: Your firm spends $500,000 per year in regular
maintenance of its equipment. Due to the economic downturn, the firm considers
forgoing these mai
MBA 800 Homework #4
Investment Decision Rules
Dr. Stanley D. Longhofer
1) Problem 7-15 from the text: Your firm spends $500,000 per year in regular
maintenance of its equipment. Due to the economic downturn, the firm considers
forgoing these maintenance e
MBA 800 Homework #4 Solutions
Fundamentals of Capital Budgeting
Dr. Stanley D. Longhofer
7-10.
You are a manager at Percolated Fiber, which is considering expanding its operations in
synthetic fiber manufacturing. Your boss comes into your office, drops a
MBA 800 Homework #1 Solutions
Arbitrage and Time Value of Money
Dr. Stanley D. Longhofer
3-16.
An Exchange-Traded Fund (ETF) is a security that represents a portfolio of individual
stocks. Consider an ETF for which each share represents a portfolio of two
MBA 800 Homework #5 Solutions
Bond and Stock Valuation
Dr. Stanley D. Longhofer
1) Consider a $25,000 par value bond with a 6 percent, semi-annual coupon and 10
years remaining until maturity.
a) If the bonds current market price is $24,625, what is its y
Nickname for grades_
Name _
MBA 800 Fundamentals of Finance and Financial Analysis
Spring 2014
Midterm Exam
Dr. Stanley D. Longhofer
T 7:05-9:45
DO NOT OPEN THIS EXAM UNTIL I GIVE YOU PERMISSION TO BEGIN!
Midterm exam rules:
1. You may use one, 8 x 11 inc
four years. If the interest rate on the loan is 5%, what final payment will the bank
require you to make so that it is indifferent between the two forms of payment?
Timeline:
0
1
2
3
4
1,000
1,000
1,000
1,000
P/Y = 1, N = 4, I = 5, PMT = 1,000, PV = 0 =>
Security
B1
B2
Price Today
$92
$84
Cash Flow in 1 Year
$100
$0
Cash Flow in 2 Years
$0
$100
a) What is the no-arbitrage price of a security that pays cash flows of $100 in one
year and $100 in two years?
This security has the same cash flows as a portfoli
Nickname for grades_
Name _
MBA 800 Financial Statement Analysis
Spring 2013
Midterm Exam
Dr. Stanley D. Longhofer
T 7:05-9:45
DO NOT OPEN THIS EXAM UNTIL I GIVE YOU PERMISSION TO BEGIN!
Midterm exam rules:
1. You may use one, 8 x 11 inch pages of notes o
MBA 800 Homework #5
Fundamentals of Capital Budgeting
Dr. Stanley D. Longhofer
1) Problem 8-10 from the text: You are a manager at Percolated Fiber, which is
considering expanding its operations in synthetic fiber manufacturing. Your boss
comes into your
MBA 800 Homework #7
Stock Valuation
Dr. Stanley D. Longhofer
1) Problem 9-2 in the text: Anle Corporation has a current price of $20, is expected to
pay a dividend of $1 in one year, and its expected price right after paying that
dividend is $22.
a) What
YAHIA ELRAYES
A455M224
MBA 800 Homework #1
Arbitrage & Financial Decision Making and Time Value of Money
1) Suppose your employer offers you a choice between a $6,000 bonus and 200 shares
of the company stock. Whichever one you choose will be awarded toda
MBA 800
Fundamentals of Finance & Financial
Analysis
Chapter 3 & 11 Homework Solutions
1
M3.1.
The following model can be used to help answer any questions related to ROI:
ROI
=
MARGIN
NET INCOME
NET INCOME
AVERAGE TOTAL ASSETS =
SALES
x
x
TURNOVER
SALES
2.1
Current Year
Activity
Beginning of Year
Total Assets
Total Liabilities
Stockholders
Equity
$48,000
$27,000
$21,000
Activity During the Year:
Net Income
Dividends
Calculate
Total
Stockholders Equity at
the End of the Year:
$8,000
$8,000
($2,000)
($2,00