| Corporate Finance2 CreditsBU.231.620.62Thursday 6pm – 9pm‚ 10/18/2012--12/13/2012Fall2‚ 2012Columbia‚ Columbia Center‚ 218 | Instructor Shabnam Mousavi Contact Information Phone Number: (410)234-9450 E-mail Address: shabnam@jhu.edu Office Hours Monday/Thursday 10am-noon Required Text and Learning Materials (1) Berk‚ J. and P. DeMarzo. 2007. Corporate Finance. 2nd Edition. Pearson‚ Addison-Wesley with MyLab access. The ISBN is 0-13-295-040-5. (2) Lecture Notes. The lecture
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Chapter 4 15. For discrete compounding‚ to find the EAR‚ we use the equation: EAR = [1 + (APR / m)]m – 1 = .0719‚ or 7.19% EAR = [1 + (.07 / 4)]4 – 1 EAR = [1 + (.16 / 12)]12 – 1 = .1723‚ or 17.23% = .1163‚ or 11.63% EAR = [1 + (.11 / 365)]365 – 1 To find the EAR with continuous compounding‚ we use the equation: EAR = er – 1 EAR = e.12 – 1 = .1275‚ or 12.75% 23. Although the stock and bond accounts have different interest rates‚ we can draw one time line‚ but we need to remember to
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FIN 534 – Homework Chapter 4 Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed‚ or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? a.
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Cinthia Gutierrez Acc 307 Homework Chapter 4 3. Allen visits Reno‚ Nevada‚ once a year to gamble. This year his gambling loss was $25‚000. He commented to you‚ “At least I didn’t have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3‚000. “What are the relevant tax issues for Allen? Allen received something of value from the casino. Under the broad concept of income‚ the airfare and hotel accommodations would be considered
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Question 33. The National Collegiate Athletic Association (NCAA) reported that the mean number of hours spent per week on coaching and recruiting by college football assistant coaches during the season was 70. A random sample of 50 assistant coaches showed the sample mean to be 68.6 hours‚ with a standard deviation of 8.2 hours. a. Using the sample data‚ construct a 99% confidence interval for the population mean. z = +/- 2.68 68.6 – 2.68 * 8.2 / √50 = 65.49 68.6 + 2.68 * 8.2
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Chapter 1 Discussion Questions 1. What advantages does a sole proprietorship offer? What is a major drawback of this type of organization? A major drawback is that there is unlimited liability to the owner. The advantage is simplicity of decision making and low organizational and operating costs. 2. What form of partnership allows some of the investors to limit their liability? Explain briefly. It allows some of the partners to limit their liability. With this arrangement‚ the partners
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Trade Summary #4 Averett University Comprehensive Financial Management : BSA 554 September 11‚ 2012 Dr. Chung Kwon Q1.2 Explain how the valuation model given in Equation 1.2 could be used to describe the integrated nature of managerial decision making across the functional areas of business. ANSWER: This expanded equation can be used to examine how the expected value maximization model relates to a firm’s various functional departments. The marketing department of a firm has a major
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Chapter 4 29. Annuity Present Values What is the value today of a 15-year annuity that pays $500 a year?The annuity’s first payment occurs at the end of year 6. The annual interest rate is 12 percentfor years 1 through 5‚ and 15 percent thereafter. (Ross‚ Stephen A.. Corporate Finance‚ 8th Edition. Irwin/McGraw-Hill‚ 112006. 4.8). 33. Growing Annuity Southern California Publishing Company is trying to decide whether to revise its popular textbook‚ Financial Psychoanalysis Made Simple. The company
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International Corporate Finance Homework 1 1. Your younger brother has come to you for advice. He is about to enter university and has two options open to him. His first option is to study engineering. If he does this‚ his undergraduate degree would cost him $12‚000 a year for four years. Having obtained this‚ he would need to gain two years of practical experience: in the first year he would earn $20‚000‚ in the second year he would earn $25‚000. He then would need to obtain his master’s degree
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$1‚990 = 2.04; Days’ sales in inventory = 365 2.04 = 178.9 days TEST MODEL : CHAPTER 3 CORPORATE FINANCE Page 1 2. What is the debt-equity ratio for 2008? A. 22.5% B. 26.2% C. 35.5% D. 45.1% E. 47.7% Debt-equity ratio for 2008 = ($1‚170 + $500) ($3‚500 + $1‚200) = .355 = 35.5% 3. What is the times interest earned ratio for 2008? A. 30 B. 36 C. 40 D. 50 E. 54Times interest earned for 2008 = $1‚200 $30 = 40 4. What is the equity multiplier for 2008? A. 1.21 B. 1.36 C. 1.44 D. 1.82 E. 1.9
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