Homework Assignment – Week 2 Chapter 3 1. Write down the formula that is used to calculate the yield to maturity on a 20-year 10% coupon bond with $1‚000 face value that sells for $2‚000. Assume yearly coupons. $2000 $100/(1 i) $100/(1 i)2 $100/(1 i)20 $1000/(1 i)20 2. If there is a decline in interest rates‚ which would you rather be holding‚ long-term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk? You would rather be holding
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BUS 530 FINancial Management Homework 1 Note: Your answer for homework 1 must be or handed in class within 10 minutes of Wednesday class (1:10PM)‚ January 25‚ 2012. No late assignment will be accepted. You only need to answer the questions in black. Name: qinyu wu Part I MULTIPLE CHOICE QUESTIONS (2’ × 21 =42’) ( A ) 1. The principal-agent problem A. Occurs when managers have more incentive to maximize profits than the stockholders-owners do. B. Would not arise if the owners of
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COURSE IMPLEMENTATION PLAN DA NANG (Under Decision No: 203/QĐ ĐHFPT . Date: 09/04/2012 ) Course name: Corporate Finance Course code: FIN202 Level: Implementation period: from 25/06/2012 14/07/2012 Group leader /lecturer: Phạm Tô Hoài E-mail: Hoaipt@fsb.edu.vn 1) Main objectives and goals of the course Upon completion of this course‚ students should: 1.Understand the key issues of financial management in company 2.Gain an understanding of financial markets and
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FIN 470 Exam 1 NAME________________________ 1. What are the three types of financial management decisions? For each type of decision‚ give an example of a business transaction that would be relevant. Capital budgeting (deciding whether to expand a manufacturing plant)‚ capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt)‚ and working capital management (modifying the firm’s credit collection policy with its customers).
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Financial Pillar F2 – Financial Management Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and‚ if you wish‚ highlight and/or make notes on the question paper. However‚ you will not be allowed‚ under any circumstances‚ to open the answer book and start writing or use your calculator during this reading time. You are strongly advised to
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find the future value with continuous compounding‚ we use the equation: FV = PVeRt a. b. c. d. FV = $1‚000e.12(5) FV = $1‚000e.10(3) FV = $1‚000e.05(10) FV = $1‚000e.07(8) = $1‚822.12 = $1‚349.86 = $1‚648.72 = $1‚750.67 23. We need to find the annuity payment in retirement. Our retirement savings ends at the same time the retirement withdrawals begin‚ so the PV of the retirement withdrawals will be the FV of the retirement savings. So‚ we find the FV of the stock account and the FV of the bond
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2014年4月11日 Assignment Print View Score: 100 out of 100 points (100%) http://ezto.mhecloud.mcgraw-hill.com/hm_finance.tpx?todo=printview 1/14 2014年4月11日 1. Assignment Print View award: 5 out of 5.00 points Suppose you can borrow money at 8.6% per year (APR) compounded semiannually or 8.4% per year (APR) compounded monthly. a. Calculate the Effective Annual Rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 8.6% 8.4% Effective
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Time‚ Risk‚ Inflation‚ LiquidityTruncated cash flows: (Time) receive $CFt each period until time T. Constant discount rate 10%. Investment of $100 in time 0. CFs of $22 in t=1 and $121 in t=2 Annuity: receive $CF each period until time N Perpetuity: receive $CF each period forever Gordon Formula- (perpetuity) for valuing a firm with growing dividends π =risk premium.the risk premium is everything above the risk free rate‚ r+π = Risk Adjusted Discount Rate (RADR) Nominal rate - Actual rate of
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Financial Management Mock Midterm Name___________________________________ 1) Which of the following organization forms accounts for the greatest number of firms? A) Limited Partnership B) "S" Corporation C) "C" Corporation D) Sole Proprietorship Section: 1.1 The Four Types of Firms 2) The person charged with running the corporation by instituting the rules and policies set by the board of directors is called A) the Company President. B) the Chief Operating Officer. C) the Chief Executive
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MIT Sloan Finance Problems and Solutions Collection Finance Theory I Part 1 Andrew W. Lo and Jiang Wang Fall 2008 (For Course Use Only. All Rights Reserved.) Acknowledgements The problems in this collection are drawn from problem sets and exams used in Finance Theory I at Sloan over the years. They are created by many instructors of the course‚ including (but not limited to) Utpal Bhattacharya‚ Leonid Kogan‚ Gustavo Manso‚ Stew Myers‚ Anna Pavlova‚ Dimitri Vayanos and Jiang Wang. Contents 1
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